4 Big Financial Planning Mistakes for Older Adults to Avoid

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Mistakes Seniors Should Avoid When Planning Their Finances in Anchorage, AK

Retirement planning can be a daunting and confusing endeavor, especially when it comes to finances. There are countless factors seniors must consider, and many of these factors aren’t guaranteed to remain static, which leaves room for errors if they’re not careful. Here are some financial mistakes your aging loved one should pay attention to and do his or her best to avoid.

1. Overlooking Inflation

The overall value of your loved one’s savings will likely change as the cost of living rises, which makes low-risk and low-yield savings accounts insufficient for staying ahead of inflation. Your loved one should try to incorporate assets into his or her investment portfolio that entail a modest amount of risk and provide higher yields on returns.

Many older adults face challenges such as decreasing physical and mental health, so the costs of home care should be considered in financial planning decisions. There are a variety of age-related health conditions that can make it more challenging for seniors to live independently. However, many of the challenges they face can be easier to manage if their families opt for professional elderly home care. Anchorage families can rely on expertly trained caregivers to keep their loved ones safe and comfortable while aging in place.

2. Failing to Save Enough Money

Many people underestimate the number of years they’ll live after retiring, and some make the mistake of assuming the majority of these years will be spent in good health and living in their own homes. The average life expectancy has significantly increased, which means your loved one might have to make his or her retirement funds go a lot further than originally planned. Your loved one should plan to have sufficient income for seeing him or her through the years following retirement. 

Saving money throughout their lives can help people enjoy their golden years without compromising their quality of life. If you have a senior loved one who needs help maintaining a high quality of life while aging in place, reach out to Home Care Assistance, a leading provider of at-home care families can rely on. All of our caregivers are bonded, licensed, and insured, there are no hidden fees, and we never ask our clients to sign long-term contracts.

3. Jeopardizing Their Futures by Helping Family Members

During the retirement years, money saved truly is money earned. Although many seniors have limited overhead costs and entertainment expenses, any extra cash left over at the end of the month should be saved rather than given away. Once your loved one retires, he or she should stop being family members’ go-to source for extra funds when cash flow issues rear their heads. As difficult as it might be, your loved one has to learn to be firm with family members and stop issuing handouts. Though it may be feasible to offer a limited amount of financial help in special circumstances, handouts should never become regular events.

4. Relying Too Heavily on Social Security

Social Security is designed to provide financial assistance for people in their golden years. However, many seniors either claim their benefits too early or believe they will cover all of their expenses. With the cost of living becoming more expensive, your loved one should plan to use his or her social security benefits as a supplement for other types of income. The average social security benefits for retirees are often insufficient to cover housing costs, which means your loved one might not be able to maintain an acceptable quality of life without additional income.

Smart financial planning is just one of the many things that can enable seniors to age in place gracefully. Some seniors only require help with a few daily tasks so they can maintain their independence. However, those living with serious illnesses may need more extensive assistance. Luckily, there is professional live-in care Anchorage, AK, seniors can rely on. Home can be a safer and more comfortable place for your loved one to live with the help of an expertly trained and dedicated live-in caregiver. Call Home Care Assistance today at (907) 770-0907 to learn about our high-quality in-home care services


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