5 Financial Planning Strategies for Older Adults

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For aging adults, making smart financial decisions is crucial. While earlier generations were able to retire comfortably at age 65, many seniors today are living with insufficient funds. Here are a few financial planning strategies for older adults.

1. Track Expenses

For many seniors, retirement income is a meager amount. To compensate for the low income, seniors need to change their spending habits. Aging adults who haven’t retired yet should track their monthly expenses and look for ways to scale back. Cutting back on dining and entertainment expenses is a good way to save retirement income. By reducing their expenses, older adults can save up enough money to lead a comfortable life.

Saving up money is not the only way older adults can enjoy a high quality of life. To successfully age in place, some seniors require the help of a professional caregiver. Families rely on Home Care Assistance Kingwood to provide caregivers who are expertly trained in various aspects of senior home care, including our holistic Balanced Care Method, an evidence-based program focused on healthy eating, regular exercise, mental and social stimulation, and calmness and purpose.

2. Prepare a Budget

Once monthly expenses have been assessed, it’s time to create a budget. Budgeting software like Quicken, Mint, and BudgetPulse can make it easier for older adults to keep track of their money. If your loved one isn’t adept at technology, help him or her learn to navigate budgeting software. You can also brainstorm ways to make your loved one’s income viable in the long term. If spending habits need to be modified, find ways to trim the budget and increase income.

3. Make Lifestyle Modifications

Some expenses naturally decrease after retirement. For the office worker who makes several weekly trips to Starbucks, it may be easy to save $20 a week on coffee. When these smaller modifications aren’t enough, seniors need to make larger lifestyle changes. Some older adults move to an inexpensive location, while others rent out a bedroom to generate extra income. Many seniors also work part-time jobs.

If your aging loved one needs help managing everyday tasks or encouragement to adopt healthier lifestyle choices, turn to Home Care Assistance, a leading provider of senior care. Kingwood Home Care Assistance provides professional in-home caregivers around the clock to help seniors live longer, happier, and healthier lives.

4. Protect Against Fraud

Seniors have always been a popular target for financial fraud. To protect your loved one’s savings, take several anti-fraud measures. You can request notifications of unusual account activity and take immediate action if your loved one’s debit card or account is stolen or hacked. Some caregivers put location limits on their loved one’s debit and credit cards so they can’t be used if stolen. To prevent telephone scams, put your loved one’s home phone number on the relevant “Do Not Call” lists.

5. Invest in Stocks & Bonds

For seniors in their 60s and above, investments are an essential part of any financial plan. Adults who are just hitting retirement age should consider investing in stocks and bonds. The money invested in stocks can be expected to grow, and the dividend-paying bonds offer an annual income stream. For seniors who aren’t sure how to allocate their funds, a financial manager can help. Caregivers can find a local financial manager who specializes in preparing seniors for retirement.

Financial planning is just one of the many things older adults may require assistance with. If your aging loved one needs occasional help with bathing, grooming, cooking, or other basic household tasks, or if you need time to attend to important personal matters, reach out to Home Care Assistance, a leading provider of live-in and respite care. Kingwood seniors can maintain their independence while living at home with the help of our reliable respite caregivers. To create a comprehensive in-home care plan for your aging parent, give us a call at 832-412-1345 today.