Retirement should be a time for you to relax and spend your time comfortably. However, senior living costs can be incredibly expensive. How do you deal with these costs? There are various methods of handling the costs of senior living, such as using personal funds, social security pensions and benefits, annuity payments, supplemental security income (SSI), veteran pension benefits, and Medicaid. Continue reading to learn the financial benefits you can receive post-retirement and prepare yourself for the financial aspects of senior living.
Personal Funds
Personal funds are an important part of your retirement funds. By budgeting, investing well, and having savings, you’ll be financially secure and better equipped to deal with senior living costs.
Social Security Pensions and Benefits
Social security pensions and benefits are payments given to households as a form of financial assistance. Retired individuals are eligible for social benefits. On average, retirees receive 40% of their pre-retirement income from Social Security as part of their retirement plan. You can check your Social Security earnings history online to check the amount of Social Security benefits you or your loved ones will receive as it is dependent on the amount of earnings you’ve made in your lifetime. Monthly retirement benefits are a helpful part of a senior’s retirement finances.
Annuity Payments
Do you have insurance plans in place for retirement? Annuity payments are given at equal intervals to provide a fixed income stream post-retirement. Having a steady cash flow will be incredibly helpful for your retired life. You can speak to your insurance company to set up an investment plan and specify the age at which you’d like to begin receiving annuity payments.
Supplemental Security Income (SSI)
Supplemental Security Income is funded by the U.S. Treasury general funds to provide financial aid to seniors who have limited income and resources. Some states pay a supplement to increase the total SSI benefits received.
Veteran Pension Benefits
Are you a Veteran? Veteran Pensions is a benefit given to eligible wartime Veterans who have a permanent disability or are aged 65 or older. You will receive monthly payments to help support your costs of living.
Medicaid
Medicaid provides all-inclusive health care programs at low cost or no cost for seniors such as prescription drugs, medical care, and nursing home care. It also includes community and home-based attendant care services at subsidized rates.
Housing and Urban Development Programs
Low-income seniors can benefit from the programs offered by the U.S Department of Housing and Urban Development. You can qualify for HUD’s reverse mortgage program and supplement your income if you are a homeowner above 62 who has paid off your mortgage. Alternatively, you can receive subsidies if you rent a property.
USDA also offers housing repair grants for seniors in the form of single-family housing repair grants and loans with a low interest rate of 1%. If you’re a low-income senior, the Low Income Home Energy Assistance Program (LIHEAP) will help you with the cost of home electricity bills by providing you with federally-funded assistance.
Hopefully, this financial guide has helped you achieve a clearer idea of how to deal with senior living costs. Make sure you budget well and have an emergency fund prepared so you’ll be equipped with the resources to deal with any situation.
