The Pachyy Editorial Team comprises a diverse and experienced team of writers, researchers and subject matter experts whose aim is to provide you with useful insights, guidance and commentary on all matters related to your personal finances.
- Did you know? The majority of Americans retire with less than $10,000 in savings.
- It may interest you to know that for most Americans, Social Security is the main source of income during retirement.
- If you or a loved one is a low-income senior citizen, there are several government support schemes available to provide assistance.
Assessing Senior Citizens’ Financial Debt
Did you know that according to a 2016 study conducted by the Employee Benefit Research Institute, nearly half of households led by individuals aged 75 or older have reported having debt? This is quite concerning, especially when compared to the statistics of the previous decade, which showed a shocking 60% increase in debt. Furthermore, an alarming one-third of Americans over the age of 55 have less than $10,000 saved up for retirement, while a whopping 64% are predicted to retire with insufficient savings.
Given the ongoing deterioration of our financial landscape, it’s saddening to witness an escalating number of senior citizens finding themselves in financial debt.
Social Security: A Helpful Resource for Your Retirement
Social security may not fully replace your retirement income, but it can assist in covering some of your living expenses. Ideally, social security should account for approximately one-third of your living costs. Surprisingly, social security is the primary source of income for most senior citizens. In fact, 90% of individuals aged 65 and above receive Social Security benefits. For elderly individuals, around 20% of married couples and nearly half of unmarried individuals rely on Social Security for 90% or more of their total income.
Data from the Bureau of Labor Statistics reveals that the average retiree over the age of 65 spends about $46,000 per year. Meanwhile, the average annual Social Security retirement benefit in 2019 was $17,532. However, individuals over 65 with disabilities and limited resources may be eligible to receive Supplemental Security Income, which supplements their Social Security amount.
Financial Planning Tips for Seniors
When it comes to planning your finances for retirement, expert advisors recommend aiming to live comfortably on around 70% of your pre-retirement income. However, it’s important to remember that everyone’s lifestyle and expenses differ, so adjust accordingly. Creating a budget can greatly help in managing your finances effectively.
To give you a general idea, the Bureau of Labor Statistics Annual Expenditure Report suggests that housing should make up the largest portion of your expenses (approximately 32.4%). Transportation, food, and healthcare should follow (making up around 17.1%, 12.9%, and 12.2%, respectively). If you are over 75 years old, it’s worth noting that healthcare expenses are likely to surpass transportation costs.
Government Programs to Support the Elderly
Greetings! We want to inform you about the various government programs tailored to assist individuals aged 75 and above. These programs are available at the local, state, and federal levels, but eligibility and benefits may vary depending on your location. One example is the Supplementary Accommodation Benefit, which offers financial assistance to eligible seniors with low incomes residing in designated care residencies. Additionally, former military personnel can access a range of benefits, including specialized monetary support for housing and healthcare. We hope this information helps you find the support you need!
Welcome to Nationwide Government Support Programs
Did you know that financial experts have identified food, housing, and healthcare as the main expenses for individuals over 75 years old? Rest assured, there are nationwide funding programs designed to cater to these needs. For instance, the Housing and Urban Development offers assistance to low-income seniors who are having difficulty keeping up with their mortgage payments. Additionally, the USDA provides housing repair loans and grants at a low-level fixed income rate to help seniors in need. Furthermore, the Low Income Home Energy Assistance Program (LIHEAP) is available to help manage the cost of home energy bills for low-income seniors. Feel free to explore these beneficial programs!
Welcome to Healthcare Support
We understand that healthcare becomes increasingly important for individuals aged over 75. In fact, we know that seven million elderly Americans face challenges in paying their medical bills. Our goal is to provide assistance and support to alleviate these financial burdens.
One program that we offer is iCanConnect, which specifically aids those experiencing hearing and vision loss. Through this program, we provide funding for braille resources, specialized equipment like tablets, and even offer specialist training. We believe in empowering individuals with the necessary tools to lead fulfilling lives.
In addition, we have Medicaid, an all-inclusive healthcare program that covers a wide range of services. This includes prescription drugs, home caregivers, and various medical care options. We strive to ensure that everyone has access to quality healthcare.
Also, Medicare is another initiative we offer, providing funding for prescription drugs up to $4,900 annually. We aim to make medications more affordable for individuals who rely on them for their well-being.
At Healthcare Support, we are here to assist you in navigating the complexities of healthcare and finding the resources you need. Feel free to reach out to us for any inquiries or assistance you may require.