After a long and satisfying career, senior citizens may no longer have to contend with the morning commute or inter-office politics. Still, they often struggle with another problem: a fixed income. Rising grocery prices and ballooning property taxes can make it difficult to keep up with the cost of living, much less enjoy exciting vacations and pursue hobbies.
While it can be challenging to cut costs without sacrificing your quality of life, there are many programs and options available for seniors nationwide who want to make their dollars stretch further. Today, we’ll unveil some of the best options to boost cash flow.
Consider a Reverse Mortgage
A reverse mortgage is a great option for people over age 62 who have significant home equity and urgent financial needs. It is a second loan taken out against your home that allows you to draw down funds based on the home’s equity. The loan does not need to be repaid unless you transfer ownership of the property.
For the best results, work with a local mortgage broker who can find you excellent rates and guide you through the process. Some states have different rules for reverse mortgages, such as longer cooling-off periods or caps on how much you can borrow. As an example, those seeking an Arizona reverse mortgage can take out a loan even if the home is held in trust, but in Texas, the home cannot be held in a trust or a life estate. Brokers will be familiar with all of these rules and will ensure that you’re prepared for the responsibilities of your reverse mortgage.
Capitalize on Annuities
If you were clever enough to set up annuities earlier in life, then you’re in luck. These are a fantastic way to boost your income and protect yourself against sudden economic downturns, ensuring that you have everything you need to thrive. However, you must select and use your annuities wisely.
Firstly, don’t withdraw from annuities before they’re available, as you’ll have to pay stiff penalties that can significantly cut into your income. You should also work with a financial planner who will be able to guide you on how to use your annuities, such as putting them toward fixed costs like property taxes.
When you draw on your annuities, place them into a savings account until you need them, as this is more liquid than the annuity account itself. This way, you won’t be tempted to use them for frivolous purchases.
Look for Senior-Specific Programs
You may not be aware of the many services available to seniors in your area that can save you a significant chunk of change. For example, some utility companies will offer discounts or fixed plans to senior citizens, and nearly every grocery store will have additional rebates for older shoppers.
Your local government may also have a variety of programs that can help you save money, even if it doesn’t seem like it at first. For example, your city may provide free transportation to seniors who need to go shopping or visit the doctor. Not only does this allow you to avoid driving if it makes you nervous, but you’ll also save on gas money, which can quickly eat into a fixed budget. You could also get discounts on municipal recreation centers, making it easy to stay in shape.
Apply for Property Tax Rebates
Property taxes are a huge expense for seniors, especially as they may have purchased their homes decades prior and watched them appreciate. Thankfully, many states and local governments will offer property tax freezes for those above the age of 65, especially if they are disabled. These are sometimes called homestead exemptions, and they will often lock in your rate for the year that you applied for the rebate.
The exemption is usually not automatic, and you must apply for it separately before paying your property taxes. You can find the relevant forms at your state or municipal tax authority.
Find Flexible Work Arrangements
One in five people over the age of 65 is working, which is significantly higher than the share of older workers 35 years ago. While part of this is due to seniors being more active than ever before, it also has to do with the rising cost of living, especially when it comes to healthcare.
While you may immediately think of a labor-intensive job like a cashier or greeter, there are many ways to make money without standing on your feet all day. One of the most popular options is flexible part-time work online. If you’re computer savvy or have a younger relative who can assist you in getting started, you can make a decent wage without ever leaving home.
Options include transcription work, article writing, accounting, or data entry, all of which can be done part-time on your computer. If this doesn’t appeal to you or you don’t like the idea of working that much, you can also make a little extra cash through things like answering surveys, reviewing products, or even playing games.
Many seniors find that staying involved in the workforce gives them not just extra money but an opportunity to stay engaged with their community. By using all the resources available to you, including loans, annuities, rebates, and flexible work, you can enjoy a wealthy and satisfying retirement.
