How Can Seniors Make Retirement Living More Affordable?

Independent living during retirement is an excellent choice for active seniors who can accomplish day-to-day activities and want to enjoy the benefits of retirement fully. Since they don’t need or need less daily assistance, they can cut senior care services costs and have a much more affordable, carefree life.

However, while independent living gives the elderly significant cost savings, they still have to pay for some expenses out of their pockets, especially if they’re in assisted living. Fortunately, there are ways for them to make their independent living more affordable. Check them out here.

Make Use of VA Benefits and Allowance

The Veteran Affairs (VA) provide Aid and Attendance (A&A) benefits to any veteran who served on active duty for at least 90 consecutive days during a war. Specifically, the VA uses World War II (1941-46), the Korean Conflict (1950-55), Vietnam Era (1961-75), and Gulf War (1990) to decide which veterans can be eligible for A&A benefits.

The A&A monthly benefit is around $2,170 if only one spouse is a veteran, but it can go up to $2,902 if the married couple is both veterans. To qualify for the basic pension, the veteran should meet at least one of the following criteria:

• 65 or older;
• With no or limited income;
• With a permanent or total disability;
• Receives supplemental security income;
• Receives social security disability insurance; or
• Resides in a nursing home.

The A&A basic pension is also applicable to the veteran’s surviving spouse. However, apart from active duty and wartime service requirements and basic qualifications, both should still meet clinical and financial requirements to qualify for A&A.

For clinical requirements, the veteran or a surviving spouse should meet at least one of the following clinical criteria:

• Needs assistance to perform daily activities;
• Bedridden (except for medical and therapy appointments and treatments);
• A nursing home patient;
• Have severe visual impairment (having only 5/200 or less in both eyes, even with glasses or contact lenses on)

For A&A’s financial requirement, the applicant’s net worth should only be $123,600, excluding their automobile, residence, and personal effects. There’s also a three-year lookback period to check if the applicant’s assets are gifted or sold below market value in a way that lowers the net worth under the upper eligibility limit.

There’s also an upper limit countable income minus costs every month. These include Medicare premiums,  private health insurance premiums, prescription out-of-pocket costs, and unreimbursed medical bills. To make up for the difference between the monthly upper limit and the recipients’ countable income, the VA will pay benefit amounts.

However, if the veteran has permanent disabilities, they should get Housebound Benefits. To be eligible, they must first get a VA pension. It’s also crucial to note that if veterans avail of this benefit, they can no longer receive A&A benefits. These two can't be taken at the same time.

Veterans or their loved ones seeking to maximize VA retirement benefits should consult with attorneys trained in veteran disability law. These attorneys help ensure eligibility, navigate paperwork, and increase the chances of securing full benefits, including Aid and Attendance (A&A).

Live in Non-profit Senior Living Communities

Similar to profit counterparts, non-profit senior living communities provide different services, facilities, and care intended for the elderly. These include memory care, assisted living, and independent living. The only difference is that non-profit senior living communities are much more affordable.

Additionally, the residents' fees and sponsors' donations are reinvested into non-profit senior living communities. They leverage it for the development of their staff and facilities, as well as financial assistance for residents in need.

Since they’re usually faith-based and affiliated with good fraternities, rest assured that non-profit senior living communities ensure the seniors’ whole being. These include their physical, mental, spiritual, and social needs, regardless of their financial situation.

Invest in Long-term Care Insurance

For most seniors, a medical emergency can easily become a financial crisis since most don’t have a regular income after retirement. The good news is a debt crisis can be prevented with the help of health insurance. They can help the elderly pay lower or no medical bills.

Moreover, there’s no Medicare assisted living that focuses on custodial care. They don’t cover the costs of its facilities and residence, as well as other expenses for long-term residential care, including nursing homes or memory care facilities.

Long-term care insurance, however, can pay a part or all the assisted living costs up to the monthly benefit limit. They also cover adult day care, home care, and nursing home care expenses.

The only downside of long-term care insurance is that seniors must buy it before using it. In addition, it’s hard to qualify for it if you’re over 75 or have an existing health condition. Hence, it’s always better to invest in it at the earliest.

First, every person’s age significantly influences the premiums of health plans. The older a person is, the higher their premiums will be. Second, there’s ongoing medical inflation these days. While it can translate to better medical advancement, it poses risks to many older adults, especially those on a shoestring budget. Being insured in advance is the safest way to tackle these burgeoning medical costs.

Take Advantage of Senior-Focused Loans

Several credit products are designed for the elderly, regardless of their credit rating. Seniors who need to make ends meet or want to start a new business to generate another income can take advantage of these loans. Such loans include senior term loans, USDA housing repair loans, cash-out refinance loans, and payday loans.

Final Thoughts

It’s a good idea to picture out and plan the future in advance when considering senior living options. Even if your aging loved one isn’t yet in need of medical assistance and care at this point in their life, investing in it can make a whole lot of difference in the future.