Eventually, age catches up to everyone, but that is no excuse to fall behind on financial obligations. Many people ask, What are the financial needs of an elderly person? Seniors have several needs to maintain their independence, keep their dignity intact, and relieve the strain this burden puts on their relationship with loved ones.
At Marcia L. Campbell CPA, we have helped seniors ensure they are financially secure for decades with premier personal fiduciary services. Read the first part of our two blog series to learn more about the financial needs of seniors.
Related Article: Signs My Aging Parents Can No Longer Manage Their Finances
What Are the Financial Needs of an Elderly Person?
Your parents supported you throughout your life. The least you can do is return the favor and make this a fulfilling life chapter for them. From managing social security to managing their taxes, here are the financial needs of the elderly.
Related Article: Tips for Taking Care of an Aging Parent in Your Home
Social Security
Social security is one of the most important considerations for those asking, What are the financial needs of an elderly person? Many seniors receive Social Security, and managing it requires considerable expertise to ensure it can cover their expenses.
Related Article: 10 Ways to Help Your Parents with Their Finances
Retirement
For seniors, making retirement one of the best chapters of their lives requires prudent management. While your parents may be preparing to relax, their financial obligations will not follow suit. Common expenses include:
- Housing
- Health care
- Auto and life insurance
- Taxes
- Utilities
- Groceries and personal care
- Transportation
- Outstanding debt
- Home improvements and maintenance
- Cable, internet, and phone bills
- Travel and leisure
Being on a fixed income makes budgeting crucial. Private fiduciary services can help ensure your senior loved one doesn’t come up short or miss a payment.
“Retirement has significant milestones. When can you initiate retirement contribution catch-up? When should you enroll in Medicare? When can you start taking out your Social Security? These milestones occur in a senior’s 50s, 60s, and 70s. Fortunately, elder accounting services can ensure you and your elderly loved one stay on top of it.” – Marcia L. Campbell, one of the leading elder care accountants in California
It is also important to ensure you manage their investments, they don’t outlive the life of investments, and they don’t run out of retirement money by identifying savings opportunities and opportunities to maximize their income.
Related Article: Elder Care Accounting Services: What You Should Know
Insurance and Medical Expenses
Insurance and medical expenses are also important to factor in when asking, What are the financial needs of an elderly person?
Staying on top of these expenses ensures your senior loved one is taken care of as they age and can account for a sizable portion of a senior’s income, even for elderly individuals who were initially confident they had enough savings.
“Health care is a complicated beast. People often don’t realize what they have to pay for, and many seniors and their loved ones feel blindsided by out-of-pocket expenses and the fact that they have to pay for many parts of Medicare.” – Marcia L. Campbell, Elder Care Accountant, Marcia L. Campbell CPA
If your senior loved one is on a fixed income, especially if they are on subsisting on Social Security, it is important to capitalize on federal and state assistance, especially those available to low-income individuals.
Couples need $295,000 on average to afford health care throughout retirement. But a private fiduciary will ensure your senior has taken advantage of all the insurance opportunities available to help them pay for it, such as:
- Medicare and Medicaid plans
- Medicare Supplemental plan
- Medicare Advantage plans
- Dental insurance
- Vision insurance
- Long-term care insurance
- Home health care
- Assisted living costs
- Military veteran benefits
- Cash-value life insurance
- Burial insurance
- Social Security Disability Insurance (SSDI)
- Supplemental Security Income (SSI)
- Medicare Savings Programs
- Program of All-Inclusive Care for the Elderly (PACE)
- State Health Health Insurance Assistance Program (SHIP)
Premier Elder Care CPA and Professional Fiduciary Services
Your parents have worked hard their entire lives to enjoy this phase of their lives, but failing to stay on top of their finances can derail their golden years. As their child, they have helped you substantially throughout their life, and it is fair to return the favor. But managing their finances is a full-time job that requires considerable experience and expertise.
