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Financial literacy and money management skills are important at any age. In one’s youth, it’s important to save up for retirement. In retirement, it’s important to properly manage money so that you can continue to live comfortably while also paying for any unexpected medical bills or other expenses. If you’re a senior, or you have a senior loved one who is looking to improve their finances, this is the article for you.
Here’s some practical, well-researched advice on how to manage your money well during retirement:
Health insurance is an often-overlooked way for seniors to better manage their money. Health insurance coverage matters, as recent studies have shown, especially in a country where nearly 20 percent of the nation’s money goes toward funding health care systems. Healthcare can be costly, and illnesses or injuries can be unexpected at any age, especially for seniors.
Luckily, if seniors have the right healthcare coverage, staying healthy doesn’t have to be a financial stressor. There are many health insurance options available for seniors these days, including Medicare. Of course, Medicare is just one option. It’s important to make sure you have the right coverage for your unique situation and health history. While Medicare is a great benefit, there are gaps in its coverage. Depending on your needs, like if you need coverage for dental and vision care, a Medicare Advantage plan can cover all the bases. Whereas if you want to stick with Original Medicare, you might only need supplemental coverage through a Medigap plan. It’s important to use your resources to zero in on what coverage suits you best so you’re getting the most for your money.
Finances During Grief
No one likes to think about losing their loved ones. Unfortunately, however, it is a natural fact of life. Seniors who have recently lost a spouse, while contending with their grief and all the emotions that come with it, still need to address financial concerns, such as funeral costs and tending to medical bills. Depending on your financial situation after the loss of your spouse, you may want to consider thinking ahead for your own end-of-life arrangements. Funeral expense insurance can help cover medical costs and the service, removing the financial burden from your family.
There’s no denying it: the United States has a massive debt problem. This issue directly impacts seniors during a time when the nation’s Social Security benefits are facing funding issues. These days, one of the best ways to pay off your debt is to avoid having it in the first place. In addition to the tactics listed above, you could restructure your budget to become more modest, allowing you to allocate more funds toward paying off debt. For instance, many seniors downsize from a large family home into something smaller, less expensive, and easier to manage.
If all else fails, you can also work with a financial advisor or even enter a debt management program. While these decisions might seem scary at first, they can really bring more freedom to your golden years and more money to your wallet.
It’s never too late to start making better financial decisions. The truth is, at any age, you can start turning your financial situation around and improve how you plan for your future. By following the advice listed here, you can start building a nest egg and protect yourself in unexpected situations, such as a medical crisis. By practicing proper money-management techniques, you can not only improve your financial literacy, you can also eliminate debt and help ensure you have the funds available to truly enjoy your retirement.