30 Money Saving Tips for Senior Citizens

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This is a guest post by Teena Celis.  Although it applies to US citizens, citizens in most other countries will find the ideas useful.

The rising costs of everyday commodities are causing people all over the world to cut back on their expenses. Disposable incomes are getting limited; it’s getting tougher for people to make ends meet. 59% of available senior income is going towards housing and health care. This means there’s not much left over for food, transportation and other needs. How does a senior person save money in this kind of scenario?

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US Health Reform Irks Some Seniors

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The US Government is working hard on  health reform to ensure Americans get the high-quality, affordable care they need and deserve. At this time, too many Americans can’t get the affordable care they need when they fall ill.

However President Obama’s health-care initiative may be a costly misstep in some eyes.

It was a long shot to think that a neophyte U.S. president, before celebrating the first anniversary of his inauguration, could radically transform the notoriously dysfunctional U.S. health-care system in a way Theodore Roosevelt first vowed to do in his losing bid for the presidency in 1912.

Obama will sign a reform bill later this year, which will require all Americans to purchase health-care coverage, including the close to 46 million Americans who have no coverage.  This will be subsidized by Uncle Sam to pay their premiums. Certain restrictions will be placed on private insurers, among them a prohibition against denying insurance to Americans with pre-existing medical conditions.

Powerful opposition to the health reform has become very vocal and many are up in arms.  The AARP (American Association of Retired Persons) has come out in favor of the reform but that has caused some members to resign in protest.

As many as 60,000 AARP members have left the group in protest over its stance on healthcare reform. The reforms did not sit well with the many AARP members who are upset over proposed cuts to Medicare that will total $313 billion over ten years.  They are in many cases defecting to the American Seniors Association, which bills itself as more conservative than AARP and solidly opposes President Obama’s healthcare reform proposals. 

Given this vociferous opposition, Obama has been promoting Health Reform on conservative radio.

The White House transformed its Diplomatic Reception Room into a radio studio Thursday, as President Obama took to the airwaves to promote his health care plan. He spoke directly with listeners of a nationally-syndicated radio program hosted by Michael Smerconish. Talk radio is a powerful vehicle for promoting political and social agendas in the United States. Conservatives have used the airwaves lately to aggressively attack Mr. Obama’s policies.

The fierce debate will certainly continue since in essence the Health Reform has some hidden victims.  These are some of them if anything like the existing Senate or House health plans become law:

  • Young people will have to buy policies that don’t reflect the low risk they have of getting sick.
  • Small Businesses will have to pay a tax up to 8% of their payroll, if they do not provide coverage
  • Health Savings Account (HSA) holders covered by plans with low-cost premiums and high deductibles that are designed for large, unexpected medical costs will have to buy policies
  • Medicare Advantage users will undoubtedly see changes

Although the objectives of the Health Reform are most laudable, President Obama will have to use all his diplomatic and persuasion skills if the Health Reform package is to be adopted without too many cuts and modifications.

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US Seniors Need Stimulus Too

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Early in February we were reading Why Seniors Need Their Own Stimulus Program.  It was suggested that the American Association of Retired Persons (AARP) should seek a deal with the government on behalf of the nation’s older citizens. AARP is a membership organization for people age 50 and over leading positive social change through information, advocacy and service.  The pitch was that things would be getting tougher for seniors, so there should be an infrastructure program for the reinvention of our communities to fit the needs of an aging population. 

No-one has picked up this clarion call as far as we can see.  Indeed the latest headline is asking Will the Stimulus Package Leave Vulnerable Seniors in the Cold?  Anyone visiting Recovery.gov will learn that its goal is to be the “centerpiece” of transparency and accountability in the implementation of the stimulus package. In a special section on “Where is Your Money Going?“, the website reports that $81 billion will be devoted to “Protecting the Vulnerable.”  Unfortunately clicking through to learn more about how the vulnerable will be protected, provides few details.

New information on the allocation of funds will be posted on Recovery.gov as it becomes available.  We trust that this vulnerable section of society that has few powerful lobbyists is not forgotten in the collective concern for recovery.

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Long-Term Care Concerns Fuel Seniors Home Care Growth

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LTC is A Key Part Of Retirement Planning

As the US Congress prepares to debate health care reform, long-term care for seniors is likely to be a crucial part of the debate. Long-term care has become hugely expensive in recent years—the average cost of a year in a private nursing home reached $76,285 in 2008, according to the U.S. Department of Health and Human Services.  At least 70% of people over age 65 will require long-term services at some point, and will need those services for an average of three years.

A preferred solution for many is to stay in their own homes.

The population is aging, but more people want to stay put. About 89 percent of those 55 and older would prefer to live out their lives in their homes, according to an AARP survey. And the older they get, the less inclined they are to leave.  The survey found that 92 percent of people 65-74 want to age in place. For those 75 and older, about 95 percent want to remain in their homes as long as possible.

Who will help care for them? The need for caregivers and home-care aides is growing. Even in this ferocious recession, health services is one of the few sectors where jobs are going unfilled.  So not surprisingly, Senior home care companies are booming.  While many companies are struggling in this recession, those that provide home-care to Canada’s seniors say they’ve been surprised and delighted to find business booming.

“Our client base has been growing by over 25 per cent across Canada,” says John DeHart, co-founder of Nurse Next Door Home Healthcare Services.  Another provider, Home Instead Senior Care,  says revenues increased by 24 per cent in 2008 and it projects similar growth for 2009 from 22 independently owned locations across Canada.

Families are trying to defer assisted-living facility costs by keeping aging parents in their own homes as long as possible. When seniors need more help with daily tasks like dressing, cooking and housework, government-provided care is limited and goes only to those in greatest need, leaving many families in search of a way to fill the gaps.

The alternative solution of moving to a retirement community is not risk-free in this major recession. Neil Prashad, president of Origin Retirement Communities, acknowledges that the company’s potential client base is “very, very spooked” by the economy, particularly because they live on fixed incomes. Home care may not afford the same easy life style but it involves much lower costs.

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