Financial planning can be stressful at any age, but for seniors, who need to account for retirement and navigate the complicated Medicare system, it can be particularly intimidating. Fortunately, with the right information, it’s easy to avoid common mistakes.
In today’s post, Griswold Home Care of Wheat Ridge, your local live-in elderly care provider, shares common financial pitfalls that affect seniors.
- Not Understanding How Medicare Works
Many seniors are under the impression that Medicare can be used to fund long-term care, such as an assisted living community or a nursing home. This is false; Medicare cannot be used to cover long-term care. Medicaid can be used for this purpose, but only after the individual has exhausted all other resources. Failure to understand the limitations of Medicare can have devastating consequences, so make sure you and your senior loved one have a clear understanding of how the program works.
- Relying Too Much on Social Security
Social Security is an important benefit that offers significant financial support to seniors, but Social Security funds alone are not enough to provide a high standard of living, and certainly aren’t sufficient to fund long-term care. The average Social Security benefit for a retired worker is around $1,230, according to the Social Security Administration, which is barely enough to cover rent on a modest one-bedroom apartment in many cities. In addition, the future of the Social Security program is very much in jeopardy, so seniors should plan ahead by contributing to a separate retirement savings account.
- Falling for Scams
From email scammers claiming you’ve just won millions of dollars and simply need to send your credit card information to receive your award, to phone scammers trying to weasel personal information out of you to steal your identity, fraud is rampant in today’s digital world. Unfortunately, seniors – who may not have a solid grasp of modern technology – are at a high risk for falling for these scams. You can help prevent senior fraud by educating your elderly loved one about these risks.
Contact Griswold Home Care for Assistance
Griswold Home Care of Wheat Ridge provides compassionate care for seniors on the Front Range. For information on our senior care services, call us today at (303) 622-5585. We’ll be happy to connect you with an experienced private in-home caregiver.