Many adults of the baby boomer generation have reached the traditional retirement age without saving enough money to comfortably retire. If their nest egg simply isn’t enough, there are ways family members can help. Here are five things to do if your senior loved one hasn’t saved enough for retirement.
1. Start Saving Now
For aging adults nearing retirement, it’s never too late to start saving and stash some money away. They may also have to delay their retirement date for a few more years. For example, a 65-year-old person with inadequate savings may have to work another five years. If he or she saves $100 a week and places it in a retirement fund with a high annual return, he or she will have saved thousands in five years. To stash away extra money, your loved one may have to cut costs. You can help by looking over his or her weekly expenditures and finding ways to save. Your loved one may be able to save $100 a week by dining in, skipping his or her morning coffee run, and paying for a monthly Netflix subscription instead of taking a weekly trip to the movie theater.
Family caregivers often have little time to help their loved ones manage their finances. If you are the primary family caregiver for an elderly loved one and need additional assistance providing high-quality home care, Centennial Home Care Assistance can help. We are a leading home care agency committed to changing the way seniors age.
2. Get Rid of Debt
While saving money is essential, getting rid of debt can be even more crucial for seniors on the cusp of retirement. There’s nothing that hinders healthy cash flow like debt, and seniors shouldn’t enter retirement with large debts. During their last few years of work, aging adults should work hard to pay off credit debt, mortgages, and any other outstanding bills.
3. Adjust the Retirement Portfolio
If your loved one has a retirement portfolio, make sure he or she has the right mix of stocks and bonds. While seniors who want to retire may be tempted to follow a high-risk portfolio plan, this kind of risk can backfire. Instead of going for the high-risk option, your loved one should have a healthy mix of interest-accruing bonds, stocks with growth potential, and stocks that pay out dividends. You can help by overseeing your loved one’s retirement portfolio or by finding a knowledgeable financial advisor who can optimize your loved one’s returns.
Living independently is important for seniors who want to maintain a high quality of life. For some, this simply means receiving help with tasks that have become more challenging to manage over time. Even when families have the best intentions, they may not have the time to provide the care their elderly loved ones need and deserve. If your loved one needs help for a few hours a day or a few days a week, reach out to Home Care Assistance, a trusted provider of respite care Centennial seniors can depend on.
4. Choose a Post-Retirement Career
While many people see retirement as a time for relaxation, many aging adults consider retirement a chance to swap their full-time job for a low-stress part-time job. Many seniors find part-time employment after they retire, as it gives them a steady income stream to supplement their retirement savings. Your loved one may want to utilize a former skill set such as accounting or shift course and become a library assistant after years of working as an English teacher.
5. Make a Big Move
Most seniors don’t want to lower their standard of living during the retirement years. Seniors who live in cities with a high cost of living should consider moving to a more affordable area. Your loved one could sell his or her current house, move to a less expensive city, opt for a smaller living space, and stretch his or her retirement fund for years to come.
Many seniors prefer aging in place over moving to an assisted living facility. If your senior loved one needs assistance to remain safe and comfortable while living at home, reach out to Home Care Assistance, a leading Centennial home care agency. Our dedicated in-home caregivers can assist with meal prep, bathing and grooming, exercise, medication reminders, and many other important tasks. To schedule a free in-home consultation, call us at 303.957.3100 today.