Growing Older: Are You Financially Prepared?

Aging is inevitable. But while we cannot stop ourselves from aging, we can certainly prepare for its financial implications. Setting your personal views about aging aside, how’s your financial preparation for your retirement? If you’re unprepared for retirement, this article will give you an idea of the financial options you can take advantage of once you get to the senior living stage. 

For most seniors in the United States, there are two primary financing options available for senior living — subsidized care and non-subsidized care. Let’s start with subsidized care.

Subsidized Care

Though some people weren’t able to invest appropriately in their retirement, there are still ways to get retirement subsidies from the government. Here are some of the subsidized care you can get for free or a minimal fee.

Supportive Housing for the Elderly

The Housing and Urban Development (HUD) provides housing assistance to the elderly as mandated in The Housing Act of 1959 Section 202. In this program, HUD-supported communities help low-income seniors get a house, live independently, and enjoy supportive services like preparing meals, housekeeping, laundry, etc. 

Aside from housing assistance, this HUD program also provides rental assistance, which entitles qualified seniors to lower rental payments based on their adjusted income.

Medicare

Medicare is a program managed by the Federal Government. It aims to fill the gap for people who can’t afford high-return insurances. Though Medicare can’t support the full cost of your retirement needs, it provides a subsidy to help ease the pressure of paying it using your savings. 

Medicare coverage is divided into four parts: Part A (hospital coverage), Part B (outpatient coverage), Part C (medical advantage plan), and Part D (prescription drug coverage).

Medicaid

Medicaid is a state-managed insurance program that varies per State. This insurance program aims to help low-income Americans get access to health services that they cannot afford. Moreover, you can get dual eligibility for Medicaid and Medicare as long as you qualify for dual eligibility.

Other Benefits For Specific Categories of Seniors 

Other benefits would be veterans assistance (VA), wherein surviving spouses, current service members, or retired members can take advantage of special benefits vested to them. A popular benefit for veterans would be the VA loan with a low interest rate and zero down payment.

Non-subsidized Care

Aside from subsidized care, there are still other financing options available for you. However, these options can be a financial burden if you have a low income. Choosing non-subsidized care is a good option for people who have adequate income to pay for private insurance or invest in securities that can yield a high return in the future. Here are some of the options you can choose from:

Private Savings

Having private savings is a must. Even if it’s not intended for your retirement, you must have enough money in the bank for emergency purposes. However, accumulating enough funds until your retirement is just a partial solution. While having large private savings is good, you shouldn’t rely on it as your primary source of retirement funds.

Reverse Mortgage

A reverse mortgage happens when a senior borrows against the equity of their home. In return, the mortgagee pays the mortgagor (the eligible homeowner) for life or a certain period. This type of mortgage also works if you’ve fully paid for your house. However, there are limits to the amount you can borrow.

Retirement Plans

There are a lot of retirement plans out there. Insurance companies keep on reinventing insurance policies to create unique policies for customers. Popular retirement plans include defined contribution plans, traditional pension funds, individual retirement accounts, and many more.

Find the Right Senior Care At Bahama Bay 

Are you ready for the senior living lifestyle? Bahama Bay is at your service! 

We are a luxury senior care community providing a one-of-a-kind lifestyle for residents. Our facilities are fully equipped with the latest amenities, and our trained staff are always on hand to cater to your specific needs. Talk to us today about your senior living plans.