Budgets and Seniors

Budgets and Seniors

Once a senior retires they live on social security, pensions and their investments. Everyone wants to maintain the lifestyle they have been accustomed to. Budgeting is a critical component in achieving this. Budgets help seniors manage expenses and determine what flexibility they have for “extra” spending. The age of the senior is important in this equation. Someone who is 65 has many more years to live on their retirement income than someone who is 95. The 95 year old may be in a position to take the “trip of a lifetime” as they may have plenty of funds left.

Many seniors are concerned about ensuring they have enough in the bank and that they have the liquid assets they will need to pay all of their monthly expenses. Budgets give seniors the peace of mind that they have the money they need. Budgets typically include housing, repairs, food (including dining out), personal care, medical expenses, professional services (legal, accounting and others), insurance, taxes, charitable contributions, miscellaneous expenses and, in some cases, home care. One of my 90+ clients has a monthly budget of $13,000; another’s budget is $20,000. The primary difference between these two is that the first has long term care insurance that covers home care and the other does not. But fortunately for both, they have ample retirement income and their budget gives them on-going comfort that they can afford their critical needs as well as their lifestyle.

It is important for everyone to have a budget but especially seniors. Budgets enable seniors to have a handle on their income and expenses. Budgets allow seniors to continue doing what they love for as long as financially possible. They enable seniors to continue pursue their hobbies and activities, give gifts and make charitable contributions to those who are important to them.

We here at The Seniors Answer specialize in budgeting for seniors and have a team devised to tackle and manage concerns that seniors may have. We are experts in daily money management and can help seniors make sure their golden years stay golden.