What Seniors Can Do When Experiencing Financial Hardship

According to the Decade of Healthy Ageing, 14% of seniors over 60 are unable to meet their basic life needs. Moreover, 31% of individuals don’t have any savings or a pension they can rely on in the later stages of life.. 

Financial hardship is a common issue that almost everyone faces at some point. Younger adults can improve or learn new skills, allowing them to earn a living in various ways. However, as you grow older and retire, your opportunities to grow your income may gradually start to decline. Unfortunately, many people don’t have pensions or sufficient savings to support themselves in their golden years. Combined, that’s a formula for financial strain.

So, what can seniors do if they are facing financial hardship and are unable to meet their basic life needs? Here’s a closer look at ways seniors can overcome economic hardship.

What Are the Major Financial Challenges Faced by the Elderly and How Can They Be Addressed? 

To start, here’s a snapshot of common financial challenges faced by older adults, and insights on how to overcome them.

Low Income and Increasing Inflation 

With each passing day, inflation is rising around the globe, and this can negatively affect many older adults, especially if they are living on a fixed income.

To manage low income and increasing inflation, cut down on unnecessary expenses, like luxury shopping, gifting, dining out, or decorations. If you don’t have one, consider creating a budget that includes essential expenses, like food, housing, and healthcare, and limits non-essential spending.

Healthcare Costs 

As we age, our physical and mental health may start to decline. Various age-related diseases, like high blood pressure or diabetes, can lead to an increase in overall healthcare costs.

In addition, age-related diseases commonly require taking medication for the rest of your life, which can certainly affect your budget and cause financial hardship.

Managing healthcare costs can include asking your doctor or pharmacist for a low-cost alternative or a generic brand for each eligible medication.

Other measures can include opting for a healthy lifestyle, maintaining good eating habits, and managing stress to prevent disease progression. For example, you can increase physical activity and avoid foods high in sodium, fat, and sugar. 

You can also find coupons and discounts, or contact non-profit organizations or patient assistance programs offering financial support for healthcare.

Home Maintenance 

If you own a home, it will require maintenance, especially if it’s an older home. Maintenance costs can include plumbing, electrical work, managing gutters, and repairing broken seals or leaks. If you’re not handy around the house and able to take care of it on your own, these types of repairs can lead to significant costs and financial strain.

One way to reduce home maintenance costs is to take preventive measures to avoid significant expenses later on. Proactive maintenance tasks, such as regularly inspecting and cleaning your home, can help you stay one step ahead of an expensive emergency repair. Promptly fix minor plumbing issues and take steps to lower utility costs, such as installing energy-efficient appliances.

Seniors can also apply for home repair grants or financial assistance from government and nonprofit agencies aimed at helping seniors age at home.

Lack of Savings 

Large, unexpected expenses make it difficult for many adults to save enough money. Moreover, people often spend their extra money on vacations and shopping instead of building up their savings. 

As a result, when they retire, they don’t have enough savings they can rely on to manage their expenses. A lack of emergency savings is another significant financial problem that older adults commonly face as they age. 

You can build a savings account by selling unneeded items around the house, renting out an unused room, or working part-time.

Organizations That Offer Financial Assistance To Seniors 

Some organizations that offer financial assistance to seniors include:

Medicaid 

Medicaid is a government organization that offers healthcare assistance to seniors over 65 with low income or limited resources. Some major expenses covered by Medicaid include doctor’s visits and tests, inpatient and outpatient hospital services, home healthcare, and preventive care services.

Social Security 

Social Security offers retirement benefits to seniors or their spouses who are at least 62 years old.

Low Income Home Energy Assistance Program 

The Low-Income Home Energy Assistance Program (LIHEAP) is a federally funded program that provides financial assistance to help low-income households manage energy costs. It helps with weatherization, energy bills, and energy-related home repairs. The program aims to make homes more energy-efficient, provide heating support during winter, and repair or replace heating equipment when needed.

National PACE Association 

The National PACE Association is an organization that offers services to seniors who wish to age in their own homes. They provide services like personal care, medical and social services, transportation, nursing, physical and recreational therapy, and more. 

The National PACE Association has a dedicated interdisciplinary healthcare team that creates personalized care plans for seniors, focusing on managing chronic health conditions and providing support to both patients and their families or caregivers.

Other Tips To Manage Financial Hardships for Seniors 

Below are some additional tips for seniors to manage financial hardships: 

• Search for senior discounts, and make a habit of purchasing necessary items from places that offer discounts, especially for seniors.
• Create a budget and periodically review and adjust it.
• Utilize senior transportation services.
• Consider shared living to manage and distribute housing expenses.
• Move to a smaller home to reduce rent, maintenance, and utilities. 
• Start saving money each month, even if it’s a small amount. 
• Attend financial literacy workshops to learn how to manage expenses on a fixed income. 
• Learn a new skill and offer part-time freelancing services. As you gain experience, you can teach or create online paid courses.