Tracking expenses, accessing benefits and finding community resources can help as costs rise
As the cost of living rises, some older adults struggle with making ends meet. Whether they’re using their life savings or Social Security, making the dollar stretch can be tough.
Amy O’Rourke, an aging expert, said the first step in budgeting on a fixed income is tracking expenses.
“One of the first things I like people to do is write down what they’re spending their money on,” O’Rourke said. “You’d be surprised how many people don’t realize, ‘Oh, I’m going out so much,’ or, ‘Oh, I’m buying so many cigarettes.’”
O’Rourke said writing down expenses and reviewing them helps identify where adjustments can be made.
She said there is value in hiring a care manager or financial professional to identify potential savings and public benefits, though it requires an upfront cost.
“I’ve had family members buy the consult for their parents,” O’Rourke said. “So getting creative and getting some feedback in where your money’s going is really the first step.”
Dr. Rhea Rogers, a board-certified physician, said the term “fixed income” is a misnomer because inflation is not fixed.
“Even when you’re budgeting and planning and doing everything you can, you’re not thinking about 10 years from now. That price is not going to be the same,” Rogers said.
Exploring untapped benefits
Sam Cradduck, a gerontologist, said budgeting on a fixed income is not about being good with money; it’s about protecting essential needs.
“I’ve seen people that they truly have to make those choices,” Cradduck said. “Do I pay the copay on my prescription that’s going to keep me alive or do I get to eat?”
Cradduck said seniors should explore all available benefits, including VA benefits and pensions from current or former spouses. People who have been married more than once can sometimes tap into another spouse’s benefits, she added.
Her mother discovered late in life that she could draw from a different former spouse’s Social Security, which raised her monthly income significantly, Cradduck said.
“Getting those senior discounts, you’ve earned them,” Cradduck said. “Be proud of it. You know you were proud when you turned 16 and you could drive.”
O’Rourke encouraged seniors not to be afraid to ask about Medicaid benefits.
“You paid your taxes. You put into this system,” O’Rourke said. “Don’t be afraid to ask the question, is there any Medicaid benefit that will help me pay for my prescription medicines?”
Planning and persistence
Katherine Ambrose, an aging-well coach, said people with less money need to do more planning, particularly if they might need to pay for living expenses through Medicaid.
Community resources and aging professionals are available everywhere, including home care, home health, senior living communities, senior centers, the Department of Aging and nonprofits, she advised.
She said seniors should not be discouraged by one conversation or how they are treated at a particular place.
“Stay curious. Keep being resourceful until you find some things that really make a difference,” Ambrose said. “You could have one conversation that could unlock lots of monthly money for you.”
