Rising Costs Are Crushing Retirees: How to Protect Your Finances Now

Retirement should be a time of relaxation, but for many, the harsh reality of skyrocketing living costs is making it anything but.

Inflation, shrinking savings, and surging healthcare expenses are squeezing retirees' budgets, leaving them with tough choices.

But there’s hope—strategic planning and tapping into government aid can help you stay financially secure.

Read: How to Get the Most Out of Your Senior and Retirement Benefits

Here’s what you need to know to protect your hard-earned nest egg.
 

Living Costs: Outpacing Retirement Savings

Retirees on fixed incomes are feeling the sting of rising inflation.

Essentials such as groceries, utilities, and housing costs are increasing faster than the modest Cost-Of-Living adjustments (COLA) provided by Social Security.

According to the U.S. Bureau of Labor Statistics, inflation in 2023 hit a hefty 8.3%, making it harder for retirees to stretch their savings.

As a result, more people are turning to government assistance programs to make ends meet.
 

Healthcare Costs: A Silent Financial Drain

Healthcare is one of the largest expenses retirees face, and even with Medicare, out-of-pocket costs are rising.

The average retired couple will need around $315,000 for healthcare expenses in retirement, according to Fidelity’s Healthcare Cost Estimate.

Medicare only covers so much, so consider enrolling in Medicare Advantage or Medigap for more comprehensive coverage.

Dwindling Retirement Accounts: How to Stretch What’s Left

Market volatility has left many retirees worried about the longevity of their savings.

With investment portfolios fluctuating, withdrawing more than planned could deplete your funds quicker than expected.

To mitigate this, consider part-time work, downsizing your home, or taking advantage of government programs like Social Security and Supplemental Security Income (SSI) to ease financial pressure.

The good news? There are several government programs designed to help retirees navigate these tough economic times:

• Social Security: The cornerstone of retirement income for many Americans. To maximize benefits, delay claiming Social Security until age 70, if possible.

• Supplemental Nutrition Assistance Program (SNAP): If food costs are a struggle, SNAP can help retirees pay for groceries.

• Low Income Home Energy Assistance Program (LIHEAP): LIHEAP offers energy bill assistance, helping retirees stay warm in winter and cool in summer without breaking the bank.

• Medicaid: For low-income retirees, Medicaid helps cover medical costs that Medicare won’t, including long-term care.

• Pension Benefit Guaranty Corporation (PBGC): If you worked in the private sector, check here to see if any unclaimed pensions are waiting for you.

• Housing Choice Voucher Program (Section 8): For retirees struggling with housing costs, Section 8 provides rental assistance based on income.

Conclusion

The pressure is real, but retirees don't have to go it alone.

Government programs are there to help, so take the time to explore your options and apply for assistance if needed.

As costs continue to rise, staying proactive can make all the difference in keeping your financial future secure.

Don't wait until it's too late—take advantage of these resources today!

Previous article: How to Manage the Rising Costs of Raising a Family: Practical Tips and Resources

-

Join us for expert tips, government aid updates, and special offers to help your family thrive. Don’t miss out—start receiving your benefits today!