Financial Tips For Seniors

Did you know that one in three people aged 65 and above – in North America – are suffering from economic insecurity?

This means that they don’t have enough money to pay for their basic needs like food, shelter, and medical needs. According to the National Council on Aging, the numbers will continue to rise with approximately 78 million people over 60 living in the community come 2020.

As a senior, how can you obtain financial security?

Remember that by the time you reach 60, you will be retired and won’t be receiving a monthly salary. You’ll be living on your pension and retirement benefits.

Now you don’t want to end up like other seniors out there who struggle with their finances and worse, become homeless. Below are some very helpful financial tips for seniors like you.

1. Downsize your lifestyle

Bear in mind that you won’t be receiving a salary anymore. This means you should let go of some things that you no longer need. For example, you could consider trading your gasoline-consuming SUV to a smaller car.

Avoid buying unnecessary things like the latest cellphones when you can use one that works just as good without the high price tag and complex applications.

2. Avail the perks of being a senior

Senior citizens have discounts and you should avail them. Use your discount when buying your necessities like groceries and when dining in restaurants.

You can also use it to pay for bills and in purchasing medicine. The little savings you get from it can go a long way.

3. Say no to bad debt

There are two types of debt in the world: good debt and bad debt.  For a more comprehensive discussion about these, check out this article: good debt vs bad debt.

In retirement, you really want to avoid bad debts – since using your money to pay credit card interest – for example – is going to further stretch your limited retirement funds.

A mortgage – is considered ‘good debt’ because it is secured on a property and usually carries almost the lowest possible rate of interest – compared to other debts. However, you should make sure that it is right for you.

4. Manage your bills

Being a senior doesn’t mean you’ll be exempted from paying your bills.

According to Woman’s Day, be practical by setting up automatic billing with your bank. You don’t want to be charged extra for forgetting to pay your bills but once you have arranged with your bank, the amount will be automatically deducted.

Another option is to avail of budget billing offered by utility companies. You’ll be charged lesser during the months when usage is more likely to be up and charged higher during the times when consumption is lower.

5. Stay healthy

As you age, your health also starts to deteriorate. It’s during this stage of your life that you’re prone to many diseases and injuries.

According to the Centers for Disease Control, 33 percent of men and 37 percent of women aged 65 to 74 are obese.

This condition can lead to more fatal diseases like diabetes, cancer, heart problems, osteoarthritis and depression among others. The best thing to do is stay healthy by sticking to a balanced diet and exercising regularly.

In summary, seniors should live their lives to the fullest. Age should never be a hindrance to enjoy everything that life must offer. Follow these financial tips for seniors and you’re on your way to a happier, more fulfilling and stress-free senior life.

Mich Sneddon, CPA, CA

A Canadian Chartered Accountant and licensed Mortgage Professional – creator of Reverse Mortgage Pros – the #1 reverse mortgage specialists in Canada.  I make it my mission to educate Canadians about how reverse mortgages work so that you can make an informed and educated decision that’s right for you and your family.