Managing Finances
in Our Golden Years 

As we get older, managing money gets more complicated, even as it becomes more important. Medical bills pile up, retirement savings stretch thinner and many older adults need daily help from family or caregivers. 

Budgeting for our twilight years

Today, one in seven older adults say they spend a quarter or more of their average monthly budget on health care (Commonwealth Fund’s 2023 Health Care Affordability Survey). At the same time, eight in 10 caregivers say they spend their own money helping a loved one (The Long Term Care Poll), often dipping into savings or going into debt. Families can prepare for this by talking early and often with their loved ones about money. What’s in their retirement accounts? Are there enough funds to cover housing, food, medication and other needs? Will family members need to chip in, and if so, how much each month feels realistic? Below are some tips to keep financial planning on track, for both older adults and those caring for them:

• Know what’s available. Review retirement accounts, pensions and Social Security benefits. Understand how much comes in each month, and what regular expenses look like. 
• Budget smart. Create a monthly budget that includes all basics — housing, food, prescriptions — and some “what ifs,” like emergency hospital visits or home care help.
• Divide responsibilities. Caregivers should be honest about what they can and can’t afford to contribute. Even small monthly amounts or help with bills can make a big difference when planned out. all your loved one’s needs. Define your limits and don’t overextend yourself.

Health insurance is a critical piece of the puzzle. Over 94% of people over 65 are insured (Administration for Community Living), mostly through Medicare, which covers hospital and medical services. Some choose to pay more for Medicare Advantage (MA) plans that offer extra benefits like vision, dental or fitness programs. Picking the right plan matters: the wrong one could leave gaps in care or high out-of-pocket costs.

Aging is a natural part of life, but going into it with a plan, a budget and support can make all the difference.