Financial assistance is critical, especially for the elderly. Creating a budget is the first step. You may need to think twice about your daily expenses at some point and cut down where need be. Next, have your debts in order of priority and then, using your income, pay them off systematically. Also, make sure you don’t fall behind on your payments. Make payments on time to avoid late payment and default penalties and high-interest rates, which may make your senior life extremely miserable.
In addition, various programs exist to provide such financial assistance to senior citizens. Below is a list of different types of financial help for seniors:
1. Social Security Income
Also known as social security benefits, this type of financial help for seniors is a set of payments made to qualified retirees, disabled people, their spouses, children and survivors. It’s specifically designed to replace the income that’s lost due to the effects of old age. To qualify, an individual must make payments to the social security program during their working years.
To receive the benefits, one must accrue at least 40 credits. Consequently, the benefits earned from this program are determined by your earning history, year of birth, and their age by the time they start claiming them.
2. Government Programs for the Elderly
Currently, governments have come up with programs that are specifically designed for senior citizens. The main aim of these programs is to bridge the gap between the expenses and incomes for the elderly. Typically, the significant costs incurred after retirement include money spent on buying food, housing and health care.
For the house, there are programs set up to modify the appliances in your home. The aim is to cut down energy costs and make annual savings of up to $263. To be eligible for this programme, one has to be 60 years and above.
Senior citizens are bound to spend more on health care than other people. About 40% of retirees report having spent more than they anticipated on health care bills. This is why governments have come up with programs designed to aid seniors in servicing their health care bills. Food is another expense that’s quite a challenge among seniors.
As people grow old, their ability to generate income diminishes, and so is their ability to meet specific bills on their own. As much as statistics indicate that seniors eat much less than other people, at the end of the day, they still need to eat. Programs such as the Senior Famers Market Nutrition Program (SFMNP) exist to address such food issues among the aged.
3. Senior Citizen Financial Planning
Experts contend that to live comfortably in your later days, you should only live on 70% of the money you make before your retirement. Besides, your lifestyle will determine the amount of money you should save. Typically, your expenses should look like this: a housing 32%, transport 17%, food 12% and health care12%. Important to note is that sometimes this breakdown may change, especially in the area of health care provision.
You should, therefore, ensure your budget is flexible enough to accommodate changes that may arise. If trying to balance your budget is a bit tricky, consider working with credible financial advisors or a nonprofit credit counselling organization.
4. Pension Loans
Debts can be extremely debilitating and stressful. You can’t afford to be stressed since it brings along other health complications or compounds those you already have. Hence, if your debt is too huge to bare, don’t be afraid to ask for help. Turn to your friends or family for financial assistance instead of wallowing in your worries alone.
Alternatively, there are cash loan providers that can offer you financial compensation if you are on a pension. These loans are great solutions if you need cash urgently before your next pension is available.
5. Supplemental Security Income (SSI)
Typically administered by social security, SSI is a source of monthly income to low-income citizens aged 65 years and above. It also caters for the blind and disabled. Typically, the monthly income for a single person is up to 733$. For couples, this figure rises to 1100$.
6. Employment for Senior Citizens
Programs exist that aim to get jobs for citizens aged 55 years and above. It’s common knowledge that getting a job isn’t an easy task. It gets even more difficult as one grows old. Luckily, there are programs such as SCSEP that exist to help seniors get a job.
Typically, before hiring a senior, case managers look at their employment history, physical capabilities and the potential to be assimilated into a regular job environment. They, however, have to undergo and pass a free physical examination before being absorbed into a job. In most instances, these jobs are usually part-time.
Seniors face a lot of challenges and complications wrought by diminishing incomes and failing health. However, there are many ways a senior can continue being financially productive and remain in fairly good health. Their ability to save and take advantage of government programmes designed for them can keep them productive and active, even in old age.