Years of planning for retirement are only as good as how wisely you spend your financial nest egg in your golden years. Seniors are often the most vulnerable to financial woes as they age whether it is because they can be too trusting or are less involved in their finances than they once were.
Here are four financial tips from USAToday.com that seniors must take into consideration for a retirement that’s free of financial stressors:
Because seniors often have excellent credit, they are prime targets for con artists, especially for health insurance fraud, according to FBI.gov. A senior can minimize his or her risk by never signing blank insurance claim forms, avoiding doing business with door-to-door or telephone salespeople and maintaining accurate health records for doctor’s appointments.
Don’t underestimate big expenses
With soaring healthcare costs, seniors often underestimate how much long-term healthcare or serious illnesses can cost. In addition, Medicare can be hard to fully grasp and seniors often have gaps in their coverage that they might not have accounted for in their expenses. Visit Medicare.gov to learn more about the different plans available and what they do cover to better prepare.
Avoid becoming the family bank
Seniors often become more sentimental as the years go by and they can feel compelled to help their children and grandchildren out financially. Large monetary gifts can become a problem for seniors that underestimate how much they will need for daily living costs and medical coverage in years to come. It’s best for seniors to regularly reassess their bank account’s financial health before doling out gifts.
Entrust a power of attorney
Granting someone power of attorney is one of the best ways a senior can find peace of mind. Instead of worrying if he or she remembered to pay last month’s bill or not, a senior’s trusted authority can step in and keep finances in order, minimizing long-term risk to the senior. Learn more about this at aarp.org.