Budgets Help Seniors

Budgets Help Seniors

When a senior retires they live on social security, pensions and their investments.  Everyone’s goal is to maintain the lifestyle to which they’ve grown accustomed.  To do so, a budget is a critical component for everyone but especially seniors.


Budgets and regular budget reviews enable people to have an on-going grasp of their income and expenses.  Budgets help seniors manage expenses and determine what flexibility they have for “extra” spending.  By reviewing their budgets regularly seniors are able to feel comfortable about living at a certain level.  They may be able to easily pursue their hobbies and activities, give gifts to family and friends, make charitable contributions and more.


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.  By reviewing their budget, the 95 year old senior may decide it is time to take the “trip or trips of a lifetime.”


No matter the financial position, most seniors are concerned about ensuring they have enough money in the bank and that they have the liquid assets they will need to pay all of their expenses and have money.  Budgets and regular budget reviews 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.  Fortunately for both, they have ample retirement income and their budget gives them the on-going comfort that they can afford their critical needs as well as their lifestyle.


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.