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How to Make Smart Financial Decisions at Retirement Age

By Jeff Hill, 9:00 am on February 15, 2016

After retirement, it’s important for seniors to protect their finances so they have the best prospects for comfortable living. Family caregivers in Phoenix can help their elderly loved ones maximize their finances through using these smart saving and spending strategies. 

Eliminate Debt

Once your loved one retires, he or she may have limited opportunities to increase income, yet reducing a debt load can feel like a pay raise. This is because interest rates can add thousands of dollars a year to a your loved one’s expenses. If possible, your loved one should start paying down current debts and avoid taking on any unnecessary debts during the senior years.

Know the Rules

Retirement income is subject to laws and regulations that stipulate the minimum amount allowed to be withdrawn each year along with the taxes a senior must pay. As a new retiree, these rules can sometimes be confusing, so it may be necessary for your loved one to seek financial advice from an expert. Once the rules are understood, your loved one should stay in compliance so he or she can avoid having to pay penalties.

Reduce the Cost of Living

Many seniors find downsizing makes a huge difference in their finances since a smaller home typically means lower payments and less home maintenance. However, your loved one should carefully research potential homes to make sure the move will be financially beneficial. Your loved one can also utilize senior discounts and savings programs to reduce the cost of food, home services, and utilities.

Focus on Health Care

The connection between a senior’s health and finances is strong since health care can be costly. For this reason, your loved one should strive to take care of his or her health to avoid expensive hospital stays and prescription medications. It is also important to compare insurance rates to make sure your loved one has the right plan and also explore options for long-term at-home care in Phoenix before it is needed so he or she can plan effectively.

After your loved one retires, he or she may need some help taking care of certain tasks around and outside of the house. At Home Care Assistance, our professional caregivers can help your loved one with exercise, cooking, transportation, and much more. For seniors who need more comprehensive care, we also offer Parkinson’s, Alzheimer’s, and post-stroke care in Phoenix. For more information on our in-home care services, call one of our knowledgeable Care Managers to schedule a no-obligation consultation.