4 Ways to Handle Finances After Retiring

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People are living longer, and the costs of long-term care are constantly rising. These changes are making it increasingly harder for retirees to live their lives on fixed incomes. However, there are a few strategies that can help your aging loved one better manage his or her finances. 

1. Don’t Take Social Security Right Away

Seniors who wait until age 70 to start taking social security payments are likely to get higher monthly payouts than those who don’t. In fact, their monthly checks are often as much as 8 percent higher than those who apply at age 65. Moreover, these payments will be permanently indexed for inflation. However, it’s important to note this strategy might not be for everyone. If delaying social security requires your loved one to dip heavily into interest-earning investments, the drawbacks of doing so could outweigh the benefits over time. 

When it comes to maintaining a high quality of life, older adults may need more than just a few suggestions on how to manage their finances. Seniors who want to remain healthy as they age can benefit in a variety of ways when they receive professional in-home care. Home Care Assistance is here to help your loved one accomplish daily tasks, prevent illness, and focus on living a healthier and more fulfilling life.

2. Get a Part-Time Job

Many aging adults pad their retirement incomes with part-time work. Not only is this an excellent way for your loved one to generate extra cash for discretionary expenses, but it can also do wonders for his or her physical and mental health. Ongoing employment makes seniors feel both valuable and valued by giving them a sense of purpose. It also enables them to maintain robust social lives while dodging the constant pressures of stretching a fixed income. 

For families living in Carmichael, respite care can be a wonderful solution when their aging loved ones need companionship and socialization a few hours a week or just need minor assistance with daily household tasks. At Home Care Assistance, we thrive on helping seniors maintain their independence while living in the comfort of home.

3. Downsize

The sooner your loved one makes the commitment to downsizing, the more money he or she can save. Once a person’s kids have grown up and moved out of the family home, maintaining a large residence rarely makes sense. Moving into a small apartment, condo, or cottage-style house can make your loved one’s primary residence both cheaper and easier to maintain. 

4. Limit or Avoid Big Ticket Purchases

Many people dream of purchasing brand-new boats, RVs, and other expensive items as soon as they exit the workforce. Although these things can provide a considerable amount of enjoyment, they may not retain their resale value over time. It’s often far better to keep money in high-yield savings accounts. Keeping money in savings doesn’t mean your loved one has to forgo his or her dreams of touring the world by land or sea. Your loved one can always look at used recreational vehicles or take advantage of RV or boat rentals instead. 

Many older adults face challenges such as a decrease in physical and mental health, making it difficult to do things independently. There are a variety of age-related health conditions that can make it more challenging for seniors to live independently. However, many of the challenges they face can be easier to manage if their families opt for professional senior home care. Carmichael families can rely on expertly trained caregivers to keep their loved ones safe and comfortable while aging in place. Trust your loved one’s care to the professionals at Home Care Assistance. To create a customized home care plan for your loved one, call (916) 485-4663 today.

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