Struggling to Keep Up? How Retirees Can Combat Rising Costs with Government Assistance
- Author: Wilbert Raynor
- Posted: 2024-09-06
For many retirees, the dream of a stress-free retirement is being overshadowed by the reality of increasing living costs.
With inflation, healthcare expenses, and fluctuating savings putting a strain on finances, it's easy to feel overwhelmed.
Read: Nearly Half of Non-Retirees Expect to Retire Later Than Planned: Here's Why
But don’t worry—there are government programs designed to help you navigate these challenges and keep your retirement on track.
Here’s how to take advantage of the resources available to you.
The Reality of Rising Costs
Living on a fixed income means that rising prices for everyday essentials—like groceries, housing, and utilities—can hit hard.
In 2023, inflation surged by 8.3%, according to the U.S. Bureau of Labor Statistics.
This means that even small increases in prices can make a big difference in your budget, especially when Social Security adjustments don’t always keep pace.
Healthcare: A Growing Concern
Healthcare costs can be one of the biggest challenges for retirees.
Even with Medicare, out-of-pocket expenses for medical care, prescriptions, and long-term services can add up quickly.
A recent Fidelity study estimates that a typical retired couple might need over $315,000 to cover healthcare costs throughout their retirement.
Consider additional options like Medicare Advantage or Medigap to fill in the gaps left by basic Medicare coverage.
Managing Your Retirement Savings
Fluctuations in the financial markets can make managing your retirement savings feel like a rollercoaster ride.
To avoid depleting your funds too quickly, explore options like part-time work, downsizing your home, or tapping into available government assistance.
Luckily, there are several government programs designed to support retirees facing financial strain:
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Social Security: This is a primary source of income for many retirees. To get the most out of your benefits, consider waiting until age 70 to start receiving them.
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Supplemental Nutrition Assistance Program (SNAP): If food costs are cutting into your budget, SNAP can help you buy groceries.
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Low Income Home Energy Assistance Program (LIHEAP): LIHEAP assists with heating and cooling costs, helping to offset rising energy bills.
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Medicaid: For those with limited income, Medicaid offers additional health coverage, including long-term care services not fully covered by Medicare.
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Pension Benefit Guaranty Corporation (PBGC): If you have an unclaimed pension from a previous employer, check the PBGC to see if you’re owed money.
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Housing Choice Voucher Program (Section 8): This program offers rental assistance to help reduce your housing costs based on your income.
Secure Your Financial Future
The rising cost of living doesn’t have to derail your retirement plans.
By exploring and leveraging government assistance programs, you can better manage your finances and enjoy your retirement years.
Don’t wait for financial stress to escalate—take advantage of these resources today and keep your retirement on track.
Take control of your financial future by exploring these programs and ensuring you’re getting the support you need.
Your retirement should be a time for relaxation and enjoyment, not financial worry.
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