During the “golden years” (between 65 and 80), many adults are living out their retirement years and no longer have dependents they have to provide for financially. Ideally, the golden years should be relaxed and financially comfortable. But Elder Care Alliance recognizes how easy it can be for older adults to feel stressed and worried about the future when they don’t have a comfortable financial situation.
Financial independence is important for senior adults. It can provide peace of mind and boost the quality of life. It can also become a safety net for unexpected medical emergencies or long-term care costs. Plus, having extra money in retirement can make it possible to enjoy vacations and other pleasantries. If you are worried about losing your financial independence as an older adult, there are resources to help you. This article covers some of those resources.
Retirement Planning
Planning for retirement while you’re still young and bringing in a regular income is best. However, it’s never too late to sit down with an experienced financial advisor and figure out how to make your retirement years as financially comfortable as possible. If you’re more than 50 years old but haven’t retired, you should know that the IRS allows you to make catch-up contributions to some retirement accounts each year.
Social Security
Social Security is a federal government program providing qualified people with monetary assistance. You are eligible to begin receiving Social Security payments when you turn 62. However, it would be best if you waited until the “full retirement age” (67 for anyone born in or after 1960) to receive the full benefits of Social Security.
It’s wise to create your social security account as soon as you’re eligible to do so. Signing up doesn’t require you to begin receiving benefits right away. However, it may prevent fraudsters from using your Social Security number to create a fraudulent account for themselves.
Insurance and Medical Expense Planning
It is wise for older adults to set aside money for emergency medical needs. Even if you’ve lived a pretty healthy life, it’s common to experience increased medical challenges as you grow older. There are special insurance options that can help with out-of-pocket medical costs. These include Medicare and Medicaid plans, State Health Insurance Assistance Program (SHIP), and Program of All-Inclusive Care for the Elderly (PACE).
Tax Deductions and Credits
As an older adult, you can alleviate some of your tax burdens by knowing what tax deductions you qualify to take. Remember that you can deduct expenses you paid for yourself, your dependents or your spouse. Check to see if you are eligible for the following:
- Homeowner credits
- Education credits
- Health care credits
- Investment-related deductions
- Healthcare deductions
- Savings and income credits
If you are considered a low-income senior, there should be ways you can reduce your taxes each year. Check with your financial advisor for more information.
Even though your finances may look different as an older adult, you can still be as financially independent as possible. Use the tools and resources in this article to maintain better control of your monetary situation during retirement.
