Managing Finances
in Our Golden Years 

As we get older, managing money gets more complicated and more important. Medical bills increase, retirement savings decrease and many older adults need daily help.

Budgeting our twilight years

Today, one in seven older adults say they spend a quarter or more of their monthly budget on health care (Commonwealth Fund’s 2023 Health Care Affordability Survey). Eight in 10 caregivers say they spend their own money to help a loved one (The Long Term Care Poll). They often must use their own savings or go into debt.

Families can prepare for this by talking early to aging loved ones about money. What’s in their retirement accounts? Is there enough to cover housing, food, medication and other needs? How much will family members need to help?

Here are some tips to manage money for both older adults and their caregivers:

• Know what’s available. Review retirement accounts, pensions and Social Security benefits. Understand how much comes in and out each month.
• Budget smart. Create a monthly budget that includes all basics. This includes housing, food, prescriptions. Then, think about other needs like emergency hospital visits or home care help.
• Divide responsibilities. Caregivers should be honest about what they can afford to contribute. Even small monthly amounts or help with bills can make a big difference.

Health insurance is very important. Over 94% of people over 65 are insured (Administration for Community Living). This is mostly through Medicare, which covers hospital and medical services. Some may choose to pay more for Medicare Advantage (MA) plans that offer extra benefits like vision, dental or fitness programs. Picking the right plan matters. Choose what will avoid gaps in care or high out-of-pocket costs.

Aging is a natural part of life, but a budget and support can make all the difference.