According to AARP, a US-based interest group, 6.4 million seniors over 65 live below the federal poverty level in the country. Despite the administration’s offering of social security benefits like ‘cost of living adjustments of 2.8%, rising costs such as energy, medical and other expenses have entirely eclipsed these benefits. A 2014 survey also found that one-third of senior adults have delayed retirement or work part-time to supplement their income.
Residents of Retirement Home Bowmanville attribute these rising expenses to the limited access to pensions for private-sector employees. Several other reasons also contribute to this growing concern. Review the top reasons that are making a living harder for senior adults.
Alarming Causes That Makes Living Expenses Of Seniors Costly
The mortgage crisis is taking a severe toll on elderly citizens of late. Many aging Americans are in foreclosure or behind on their payments. There are a few other instances where reverse mortgages offered by lenders are also causing worry to older adults. Senior citizens, particularly in urban neighborhoods, face difficulties when they cannot fulfill their tax obligations and their properties are subject to early foreclosure. As a result, older adults are rendered helpless when in financial trouble and cannot use their property.
Many adults have been forced to seek support from their families due to these circumstances. Although most caregivers are willing to support their parents or grandparents, enormous old-age expenses often force them to backtrack. Fortunately for seniors and caretakers, many states are providing Medicaid benefits to family members to take care of their elderly loved ones.
Cuts to Medicare are yet another serious cutback that is hurting many senior adults financially. These cutbacks have prompted the closure of several nursing homes as well. As their treatments are attracting lesser reimbursements, the doctors are also increasingly reluctant to receive new patients, disrupting senior adults’ entire health care privileges.
While the causes mentioned above are severely impacting the expenses of elderly adults, several financial assistance options exist to help them out of the crisis. A few are mentioned below.
Medicaid waivers: While many assisted care facilities accept only private pay or long-term insurance coverages, a few states offer Medicaid waivers for eligible low-income seniors. The payments are mostly for assisted living services like housekeeping help, medication reminders, and dining.
Retirement income: Seniors can also avail themselves of retirement funds by contributing to a retirement plan through a trusted investment company. This is the best option for self-funded adults and does not have access to 401K plans.
Insurance: Long-term insurance coverages are supplementary plans that cover assisted living expenses and other long-term needs, not covered by much major life insurance and health plans. These plans are usually offered through employee retirement plans.
Private payment: These payments are funded entirely from your pockets. If you plan on paying privately, ensure that your assisted living facilities are located in an inexpensive area. You can also consider relocating to less expensive areas.