Getting older isn’t all bad. If you’ve accumulated wealth over your working years, it can be the time to enjoy all of that hard work. But financial stresses often arise, including budgeting concerns, income limitations and even fraud. These tips will help older adults ensure their cash lasts as long as they do.
During retirement, income tends to be lower than it was in the prime earing years, and that means older adults need to look for ways to limit expenses to make their nest eggs last.
Don’t be too generous
When grown children are struggling with their financial lives it can be tempting to open up your bank account to them. The problem with this approach is that it can stress your finances and lead to family tension. It’s important to make protecting your money a priority, even while trying to help your children.
Plan with your partner
Even if you’ve been married to your spouse for years, it’s possible that you have different versions of how to spend your retirement years.
Make sure your bank is on your side
Some banks cater to older clients more than others, with perks such as using larger print in communication, meeting outside of the bank and speaking clearly without being condescending. Asking about your bank’s age-friendly policies before you need them can help ensure you don’t get frustrated with its policies later.
Put fraud safeguards in place
Older adults are at a greater risk for financial fraud, but there are ways to reduce that risk. family members can be alerted to large withdrawals from accounts, debit cards can be programmed to only work in certain locations and names and numbers can be placed on “do not call” lists.
Prepare for cognitive decline
When it comes to managing money, signs of cognitive decline tend to show up in one’s 60’s and 70’s. It can become harder to manage bills, calculate tips, and make change. Sometimes adult children or others can help prevent bigger problems, like falling behind on bills, by noticing those red flags and stepping in to help.
Get money help from your adult children
Adult children can often play a useful role in helping their parents manage money as they age. It’s important to enlist the support of children before experiencing a crisis or cognitive decline, so they know the basics of where to find account information if they need to. Talking through plans and wishes, and even writing out an overview of how you want to manage money as you go, can also help.