At approximately $174,000, the average lifetime cost for senior Alzheimer’s care, the disease can take a toll on the finances of seniors and their families. There are two major aspects of Alzheimer’s and finances that seniors and their families need to consider; advance financial planning, to prepare for a stage when the senior may be unable to be involved in their own financial decisions; and understanding the costs associated with Alzheimer’s care.
Elderly costs for Alzheimer’s care do vary dependent upon the progression of the disease; but can average around $18,000 per year for early Alzheimer’s care, $30,000 for a senior with moderate Alzheimer’s symptoms and $36,000 during the latter stages of Alzheimer’s disease. 75% of the costs incurred are due to Alzheimer’s care required in the home, while the other 25% of average Alzheimer’s costs relate directly to health care. Since costs of Alzheimer’s care are so significant, often seniors are unable to support the costs self-sufficiently, and family caregivers may become responsible for medical and care costs.
Seniors who suffer from Alzheimer’s, may also become physically and mentally unable to manage their finances self-sufficiently, so during the early stages of Alzheimer’s disease it’s important for seniors to establish a living will, appoint a Power of Attorney, and ensure that all bills and financial documents are consolidated.
With appropriate planning and consideration of the costs implications of Alzheimer’s, seniors and their families can put greater emphasis upon health over finance.
Home Care Boston providing elderly services in Cambridge, Boston, and Somerville. Call us at 617.557.4600.
Elder Care Stats
As the baby boomers retire, a number of Americans will be faced with the task of looking after their aging parents. There are number of statistics to be aware of regarding elder care:
• According to Sandra Timmerman, director of MetLife Mature Market Institute, caregivers spend more than $5500 per year on elder care expenses.
• Long distance caregivers spend at least $8700 per year on transportation, food and supplies.
• There 65.7 million caregivers in the United States, according to the National Alliance of Caregiving.
• More than half of those surveyed by www.caring.com are worried about the financial impact caregiving will have on them.
Your Parents’ Finances
The economic downturn has affected more than just your finances. Check in with your parents and see how they are doing. It is important to be on the same page about money matters. Here are some tips to get you there:
• Estate planning: Have all the necessary documents, including power of attorney, prepared ahead of time in case something should happen to them.
• Talk about it: Get everything on the table when it comes to finances. Once everyone is on the same page, you can begin planning.
• Free programs: There are many organizations that offer free services to assist you with elder care planning.
• Insurance coverage: Make sure you know what is covered by your parents’ insurance plan so you can arrange for out of pocket costs.
Home Care Boston providing elderly services in Cambridge, Boston, and Somerville. Call us at 617.557.4600.
If so, they are not alone. When it comes to discussing potential financial problems, be delicate. Be sure everyone has the same information from your parents to your siblings. Being aware of their financial situation is critical if you want to assist them.
Recession Statistics
Everyone was affected by the recession – including your parents. They could have had a toll taken on their retirement fund. Remind your family they are not alone:
• The Office of the Superintendent of Bankruptcy Canada reported that the share of insolvent consumers for people 55 and up has more than quadrupled in the past two decades.
• According to the Annual Survey of Senior Costs, released by the Senior Citizens League, one quarter of older US adults have lost their buying power.
Options for Financially Assisting Your Parents
There may be a point in time when you will have to assist your parents financially. Here are some potential solutions to financial problems:
• Seek the advice of a financial advisor or lawyer
• Help your parents out now and receive the money back in your inheritance.
• Share all agreements with your siblings and invite them to be part of the agreement as well.
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While many seniors do not think it is possible, there are many legal ways in which the amount of benefits from Social Security can be increased. One of the key things is to make sure you wait until at least the normal retirement age to begin collecting. This will help to maximize the amount of the monthly check. Below is a list of other ways that seniors can increase the amount.
1. The important key to maximizing social Security benefits is to wait until the normal retirement age. By retiring early, you will lose a percentage of the amount you would have gotten if you had waited a few more years.
2. When seniors have reached the normal retirement age, they will not be subject to an earning cap. This means the senior will be able to continue to work without worrying about jeopardizing their current monthly income.
3. Seniors who retire at the age of 62 will lose 25% of their potential Social Security income.
4. Other forms of income, including pensions and dividends will not reduce the amount that is paid by Social Security.
5. If possible, wait as long as you can before collecting benefits. For every year after the normal retirement age, the amount of benefits available to you will increase by 8%.
6. It is also possible to take advantage of spouse benefits by having one spouse retire at the normal age and the other wait a few years longer. This will help to maximize income.
When a senior is dealing with a financial crisis, it can create many problems. Not only is there the concern about the money, but this problem can increase stress and anxiety, often leading to an illness. When a Boston, Massachusetts senior is in financial crisis, they do have some options. The key is to try to avoid panic and look at the entire situation before taking any action. The information below may also be helpful.
Always take time to evaluate the situation. Do not panic. Determine what has caused the financial crisis. Knowing the cause must be the first step before any type of action can be taken.
Make sure to set priorities in regards to expenses. Make lists that detail where money is being spent. Many seniors do not do this and they end up spending money on things that are not necessary. Make a list of the most important expenses and go from there.
If you are in debt, try to negotiate with lenders. Many companies will be willing to lower the amount owed if you simply ask. Be sure to call lenders if you know money is tight. It is best to contact them before getting behind on payments.
Try to find some extra money. For many seniors, this usually means selling something or asking a family member. During financial crisis, explain your situation and ask for help.
There are many type of financial assistance available, especially for seniors. Take the time to do some research and see what kind of help is available.
Plan ahead. Even though we never expect a financial crisis, it is always best to be prepared. Save a little extra when possible. This will help offset expenses in the future if there is a crisis.
Planning for retirement is not an easy task and very few seniors are able to do it successfully. Even if a senior is financially stable when they retire, there are cost increases that will affect their budget. This is something most Boston, Massachusetts seniors to not prepare for and do not always see coming. The list below contains some cost increases that could present financial problems.
Many seniors believe they will be able to get by on a smaller budget when they stop working. However, if seniors are not careful, they could end up spending even more than they did while they were working.
Travel expenses will increase and this is something seniors probably did not plan for. The cost of entertainment will always fluctuate, leaving most seniors unable to budget this expense.
Socializing actually cones with a price, especially when it involves eating out or going to theatres.
Health insurance premiums will never come down! Seniors may be faces with annual increases. Co-pays and deductibles may also increase.
The cost of prescription drugs may also increase. This may not affect those who have an additional health insurance policy that covers their medication.
Long term care and household help are expenses that very few seniors prepare for. However, they could be something that must be dealt with and the cost for these is on the rise.
Finally, grandchildren are not cheap! Each year, grandparents spend more money on their grandchildren. Again, a cost that increases each year and is not planned for.
The vast majority of Boston seniors already have a life insurance policy. What they may not realize is that they can sell their old policy and purchase a new one at a lower premium. In addition to saving some money, seniors will also receive new benefits that could be better than those from their existing policy. The following information provides some more facts about how Boston seniors can benefit from a new policy.
1. Settlements can provide seniors with ways to take advantage of some new policies that have new benefits and lower premium prices. It can be beneficial to use money that was gained from a settlement of an old policy to purchase a new one with better benefits.
2. Buying a new policy by selling an old one can lower the annual premiums and offer a new policy that will leave more cash in the pocket of the senior.
3. Using a life insurance settlement as a way to increase wealth and income, seniors are now looking into selling their old policy to get a better one at a lower price.
4. Though this new financial tool is not commonly used, more seniors are learning of the benefits that come with life insurance settlements. Financial advisors are urging seniors to take action and sell their existing policy. Not only will a new one provide better benefits, but it can also save the senior a lot of money on premiums and also provide cash back from the sale of the old policy.
It is common for a senior to make some mistakes financially, which is why it is important for seniors to share financial information with spouses and financial advisers. While it can be difficult to ask for outside help, Boston seniors will benefit from having someone help them with financial decisions so that mistakes will not be made. Many seniors who suffer from dementia and Alzheimer’s will experience financial problems. The following list provides 8 tips that can help.
1. Make sure someone else has access to online banking records. This is usually a family member of a financial adviser. By doing so, bank activity can be monitored to see if mistakes are being made.
2. Have a current list of all companies that bills are paid to. This includes utilities, mortgages, insurance and loans.
3. Reduce credit limits on credit cards and make sure others have access to credit-card account records.
4. Investment accounts should be made known to family members and spouses. When another person checks these records, they should be able to see how much is in the account and whether that is the right amount.
5. Tax returns should be filed by a professional. If possible, share the return paperwork with a trusted family member.
6. Have a list of all financial relationships. This means any company or individual the senior conducts financial transactions with.
7. Have important documents in place and accessible. Wills, insurance policies, deeds and any other important document should be accessible by family members.
8. A financial checklist will help seniors with Alzheimer’s stay on track. This will help them manage what bills to pay and will also keep them up to date on all account balances.
Seniors need to be aware that there are many untrusting people just waiting to take their money. It is common for seniors to be approached with an offer for a financial investment. Seniors should take caution in these situations because there are many scams that are affecting recent retirees. More information on this troubling issue is provided in the list below.
1. Seniors who are isolated or have disabilities are often the target of these schemes.
2. One out of every five retiree over the age of 65 has been a victim of a financial scam. More than 7.3 million seniors have been taken advantage of each year.
3. Older people are targets because they are more willing to invest in something that is supposed to help them through their retirement years. The elderly are also much more trusting than the younger generation.
4. Many of the people doing the scamming are retirees as well. This is how they know who to choose for a target. Elderly con artists are more common than most people believe.
5. Veterans are also a target. There are many groups who offer to help a former soldier. While many of the programs do actually exist, these seniors are being told they must liquidate all of their assets to become eligible for benefits, which is not true at all.
Boston Elder Care enables seniors to live happy, healthy, and independent lives in their own homes.
Since it is time to file annual income taxes, there are a few tips seniors should know about. If seniors make use of deductions, credits and exemptions, they will find that they will receive a greater return than normal. These tax tips can be a big help for seniors who are on a fixed income. The following list contains some useful tips during tax season.
1. Make sure to know about any taxes on compensation. If you are still working, your income will be taxed at the normal rate. However, if you itemize your taxes and make use of exemptions and deductions, you will have a lower tax bill.
2. There are many deductions available for seniors. For example, seniors who itemize their taxes can deduct property tax, charitable gifts and medical expenses. These are only a few of the available deductions.
3. An exemption occurs when an individual is not required to pay a tax. If you are preparing your own taxes, you may want to consult a professional to inquire about exemptions.
4. Most seniors are receiving Social Security payments each month. If the senior has an additional form of income, this income will be used to determine if taxed must be paid on any earnings from Social Security. This usually applies to seniors who have higher incomes than normal.
