Many people in the U.S. enter retirement with little or no savings. As a result, the majority of all of their income comes from their Social Security payment.
The most recent Social Security Administration (SSA) figures reveal that 12% of males and 15% of females rely on the benefit for 90% or more of their income. That can be difficult for a household: the average monthly payment in June 2021 was only $1,555.
Despite a larger-than-usual cost-of-living adjustment (COLA) of almost 6% this year, fast-rising housing and grocery prices have only heightened concerns among financially insecure retirees about managing their expenses and the future.
People are beginning to feel the effect of inflation, particularly on everyday items, says K.H., president and CEO of GreenPath Financial Wellness, a nonprofit debt counseling organization. That’s putting significant pressure on folks on fixed incomes.
Do you rely only on Social Security? Here are some coping tips.
Apply for food benefits
Many seniors aren’t using all of the food aid programs available to them, claim experts. According to a 2015 research, less than half of eligible seniors used the Supplemental Nutrition Assistance Program (SNAP).
For seniors, there’s a lot of misunderstanding about the program and many stigmas, which regrettably prevents individuals from seeking help.
The extra money may go a long way for seniors on a limited income: the maximum monthly benefit for a one-person household is $250. The money is accepted by grocery shops, internet vendors, and farmers’ markets.
SNAP has limitations about how much you may own in assets and earn in income to qualify for aid, and Social Security payments are considered. Still, some costs, such as rent and child care, might be deducted, and experts advise anybody who feels they may qualify to apply.
The USDA also operates the Commodity Supplemental Food Program, allowing certain low-income persons over 60 to receive a monthly food box comprising fruits, vegetables, cheeses, and other items.
Meanwhile, retirees with Medicaid health plan coverage might be eligible for free food through Mom’s Meals. In addition, some Medicare Advantage health plans provide meal benefits under the program for persons who have recently been discharged from the hospital or are suffering from a chronic ailment.
The meals, including Salisbury steak, spaghetti and meatballs, and sweet and sour chicken, are usually delivered every two to three weeks. People may notify the program if they have any allergies, and they can accommodate vegetarian diets and those suffering from diseases such as cancer or diabetes.
A Mom’s Meals spokesperson advised seniors who believe they may be eligible for free meals to contact a Medicaid or Medicare representative. Get assistance with health insurance and medication expenses. Health insurance and prescription expenses can eat away a big part of retirees’ funds. Fortunately, some may be qualified for monthly premium assistance through the Medicare Savings Program, according to Caitlin Donovan, a spokesperson for the National Patient Advocate Foundation. This nonprofit organization assists people in accessing and paying for health care. Donovan stated that your premiums, deductibles, and copays would be paid if you qualify.
Additionally, people enrolled in Medicare Part D, which covers medicines, should check whether they’re eligible for Extra Help. This program may be able to lower your drugs expenses. According to Donovan, the benefit may be worth more than $5,000 per year. There are also a lot of nonprofit groups that help seniors with their medical expenses. Copays.org, for instance, allows you to apply for funding to cover copays, premiums, deductibles, and OTC medications.
The National Patient Advocate Foundation maintains a financial resource list where you may look for local assistance for everything from dental treatment to end-of-life services.
Other options
While you must have a very low income to qualify, some retirees may be eligible for Supplemental Security Income, a means-tested program for people over the age of 65 or with a handicap.
In December 2021, over 2.5 million people received both Social Security and the supplementary payment in December 2021, which may be as much as $841 per month for an individual. You can apply online on the SSA’s website or by contacting 1-800-325-0778.
For additional help, visit the National Council on Aging’s “benefits check-up” website, where you may learn about over 2,000 options accessible to struggling seniors by ZIP code. The council also provides a handbook called “You Gave, Now Save,” which includes information on the most generous benefits that assist seniors with expenditures such as phone bills and property taxes.
Finally, some older individuals might be able to work part-time to supplement their income. According to Teresa Ghilarducci, director of The New School’s Retirement Equity Lab, more than a third of Americans over 65 are now doing so.
Ghilarducci mentioned that the Department of Labor has a program that assists low-income, jobless seniors in finding jobs and receiving specific training. The nonprofit SER and its network of community organizations that provide job training are also good resources.
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