Some financial experts believe a major recession is looming
Here are 10 ways for seniors to financially prepare
The “R” word is not a cause for panic but a call for avid preparation.
Financial experts across the country are predicting an inevitable recession in 2023. Recessions are typically caused by a complex combination of factors, including high interest rates, loss of trust in the economy, and stagnant wages or reduced real income in the labor market. Those in or nearing retirement should take heed as a looming recession could cause a major shift in their plans by impacting their earnings or lowering the value of the assets in their retirement portfolio. The “R” word is not a cause for panic but a call for avid preparation. Here are some ways to prepare:
So, we've put together this list of the best ways that you can save money and make your retirement last longer!
1. Put Your House in Order
In contrast to past generations, today’s retirees are likely to have a mortgage payment to make once they stop working. This is, in some ways, the aftereffect of the house refinance boom prior to the financial crisis. As a result, many retirees are still owing money on their homes.
However, this does not imply that you must choose between paying your mortgage and losing your property. In fact, a reverse mortgage is one option available to senior citizens. While this isn’t for everyone, it might be a good strategy to effectively freeze your mortgage payment if you plan to stay in your home.
2. Instead of switching their home insurance, homeowners are doing this
Many homeowners are still unaware of a wonderful new service dubbed “The Amazon of Home Insurance” that might benefit millions of Americans and dramatically cut their monthly payments every year! You can bet that home insurance companies aren’t too happy about losing so much money, and that they secretly wish that homeowners don’t figure out how to utilize this site
3. Reduce Debt! It can be a slippery slope for seniors
No doubt, without credit cards and other forms of consumer credit, it’s difficult to survive in the United States today. Debt, on the other hand, can be a slippery slope for seniors, leading to even more troubles. The explanation for this is simple: the elderly live on a fixed income. As a result, not having enough money to cover expenses or not being able to keep track of one’s spending.
Living in debt can make many seniors feel isolated from their friends and loved ones, which can contribute to feelings of uneasiness.
4. Homeowners may save up to $284 per month on their mortgage payments.
By taking advantage of what are still historic low rates, eligible homeowners can save an average of $284 per month, or $3,408 per year. It is critical to determine your eligibility for an additional $3,408 today.
5. Have a backup plan.
The next recession could be the final straw for those retirees who are lucky enough to have a pension. While this has nothing to do with anything you’ve done, the fact that we’re living longer is beginning to put a strain on pension funds across the country.
As a result, you’ll need a backup plan in case something catastrophic happens to your pension. It might not be something you want to discuss, but many pensions are likely to struggle to make ends meet in the coming decade. Millions of Americans’ retirement plans are about to be upended by potential pension defaults, and if you think it won’t happen, have a second thought.
6. Cash Reigns Supreme
seniors should consider strategies to reduce the risk in their retirement portfolio, which includes keeping at least 15 to 20% of their assets in cash. These funds can be used to hedge against losses in other parts of your portfolio or to make additional investments if necessary.
Granted, savings account interest rates are currently low, making it difficult for some investment advisors to justify keeping so much cash on hand. However, almost every market analyst reaffirms that when all else fails, cash reigns supreme.
7. A "Medicare Flex Card" is being used by seniors to help pay for groceries.
Is the cost of food covered? It’s true! The new “Medicare Flex Card” is extremely popular among seniors. It could assist in paying for groceries, doctor’s visits, prescriptions, and other expenses.
8. By bundling home and auto insurance, seniors can save a lot of money
When seniors combine their home and auto insurance policies, they save an average of $730. Using different plans, most seniors end up spending too much for their home and auto insurance.
9. Look into government assistance
The National Council on Aging has a website called Benefits Checkup where you may look up public services that can help you save money. Benefits such as care help, transportation, medical aid, and health care may be available to you.
10. you might be eligible to receive a discount on your utility bills
Did you know that most utility companies give seniors a discount? Depending on your state, you may be eligible for a reduction in the majority of your utility bills.
The only catch is that you must inquire! These discounts are available, but you must call and apply for them.