Retirement Planning for Senior Citizens: 5 Financial Literacy Tips

Senior citizens don’t stop retirement planning on the day of their retirement. Managing money after retirement is just as important as saving money beforehand. Financially literate older adults will have more success with their money throughout retirement than those who aren’t aware of their finances. 

These 5 tips will help senior citizens who sometimes need in-home senior care be more financially literate throughout retirement.

1. Senior Citizens Planning for Retirement Should Do a Subscription Audit

How many online and print subscriptions do older adults have? The only way to know is to do a subscription audit. It’s easy to not notice that automated subscription payments have been going on for years for subscriptions no longer used. 

Digital video streaming, music streaming, audiobook, and news site subscriptions can add up. Print newspaper and magazine subscriptions can, too. Comb through bank statements and emails to find subscriptions to discover money being spent that isn’t necessary. There are free services also, such as Truebill, that will find and cancel subscriptions for senior citizens.

2. Creating a Budget Helps Older Adults Plan for Retirement

Retirement often means a fixed income, and a budget is very important when on a fixed income. Budgeting will make sure that there is money for all the necessities such as insurance, housing, transportation, and food as well as some money for entertainment. 

If there is more than one person living on the retirement income, each person should be involved with creating, understanding, and keeping the budget. That will minimize the stress that can occur by a broken budget because one person didn’t know the details.

3. Senior Citizens Should Know the Warning Signs of a Scam

Senior citizens are often the targets of financial scams that come in the form of an email or phone call that promises a big return for an investment. Seniors who are isolated from others or who may have declining cognitive abilities are especially vulnerable.

Some of the warning signs include people contacting a senior asking for wire transfers, phone calls from someone pretending to be from the bank or a utility company asking for confirmation of bank information, passwords or social security information, or those asking for access to a computer. Those who help senior citizens should speak with them about avoiding scams.

4. Password Management is an Important Financial Literacy Tool for Seniors

Sometimes the elderly can have money stolen without even knowing it. Hackers can get a hold of the passwords to their bank accounts or gain access to their e-commerce account passwords where their credit card information is stored.

It’s important for senior citizens to practice password management, create strong passwords that aren’t related to them (no grandchildren names or birth dates, pet names …), and change their passwords frequently. Also, they need to know they should never give their passwords to anyone who calls and the phone or anyone who emails and asks for it.

5. Senior Citizens Should Keep Track of Their Credit Score

Some senior citizens think that they aren’t going to have much use for credit anymore. They don’t anticipate buying another home or another car. But, they may need to use their credit for something unexpected such as getting a new heating system if it breaks beyond repair or a new roof on their home. Continuing to keep track of their credit score can ensure that an older adult will be able to get that credit if needed.

There’s another reason to keep track of the score, though. Monitoring a credit score can inform a senior citizen that someone has taken credit out in their name, allowing seniors to recognize credit fraud as quickly as possible so they can get it taken care of before too much damage is done.

About the Author

Kelsey Simpson enjoys writing about things that can help others. She lives in South Jersey and is the proud companion to two German Shepherds and spends her free time volunteering in dog shelters.

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