Use government programs to bridge the gap between your spending and income. Senior-focused government projects are available at the municipal, state, and federal levels.
Your largest outgoing expenses after retirement will be for housing, food, and medical care.
Here are just some of the programs available to seniors nationwide that can help cut those costs.
Housing
In the United States, certified local contractors perform an energy audit. The Weatherization Assistance Program is run by the Department of Energy and provides remedies for any energy inefficiency. Here are just a few of them:
- Cleaning, tuning, repairing, or replacing heating and/or cooling systems.
- Installing programmable thermostats
- Repairing or replacing water heaters
- Installing insulation.
- Replacing inefficient refrigerators with energy-efficient models.
Families with at least one member with a disability and people over 60 are given preference when determining eligibility. Wait. There are further details regarding energy efficiency.
Families receive assistance with their energy costs through the Low Income Home Energy Assistance Program (LIHEAP), a 40-year-old initiative. The plan calls for support in handling household energy bills, energy emergencies, weatherization, and energy-related (small) home repairs.
You’re having issues with the rent. Look into the Housing Choice Voucher Program. This program, which was formerly known as Section 8, provides subsidies to help low-income families and seniors pay their rent.
You’ll still have utility bills to pay and regular maintenance to handle even after your mortgage is paid off.
A grant of up to $7,500 may be available through the Section 504 Home Repair Program for senior homeowners whose homes have damage that is judged harmful to their safety and health.
Food
According to the Bureau of Labor Statistics, even though you’ll typically spend less money on food in retirement than at any other time in your life, you still need to eat. Here are some programs to help the elderly pay for food (which should be nutritious).
The Supplemental Nutrition Assistance Program (SNAP) provides monthly stipends to low-income seniors to assist with grocery costs. This program was once known as Food Stamps.
In order to be eligible, you must show documentation of your limited financial situation. Up until September 30, 2022, the maximum gross monthly income, which is $1,396 for single people and $1,888 for two people living in a household, will be equal to 130% of the federal poverty threshold.
The Seniors Farmers Market Nutrition Program (SFMNP) is an important program that helps the elderly with their food costs. Seniors with limited financial resources can use discount booklets provided by the SFMNP at participating food booths and farmers markets. With these coupons, you’ll need to buy organic, fresh vegetables. For usage with dried or canned goods, they are not appropriate.
If canned yams are more your style, the Emergency Food Assistance Program (TEFAP) can help. TEFAP provides low-income households with a variety of goods, such as fresh and canned fruits and vegetables, meat, dairy products, and more.
If you are also eligible for SNAP, there is a good chance that you are also eligible for TEFAP, but you should double-check this with the state’s distribution agency.
The Commodity Supplemental Food Program (CSFP) seeks to improve the health of low-income seniors over 60 by providing them with healthful USDA food as a supplement to their meals.
Funding is provided for administrative and food costs for participating states and Indian Tribal Organizations. Despite not being designed to provide a complete diet, the food packages provided by the CSFP are excellent sources of the nutrients that the diets of the population receiving benefits typically lack.
Jobs
An additional source of income and some entertainment during retirement are both possible with a job.
According to Stanford research titled “The Power of Working Longer,” working an additional three months would increase retirement income by the same amount as saving an additional 1% of income over the course of 30 years.
This means that working a bit longer can be more practical than saving a bit more.
The Senior Community Service Program (SCSEP) pays anyone over 55 the minimum wage (federal, state, or local, whichever is highest) to work at governmental or nonprofit organizations if they are a retiree who wants to return to the workforce.
SCSEP provides training for a wide range of vocations, including those as a teacher’s assistant, computer technician, or volunteer with surrounding NGOs. In spite of this, you might use the skills you’ve acquired over your career to look for more employment opportunities.
Check out CareerOneStop.org to apply. They can set you up with a training session with the SCSEP office in your area.
“Seniors should concentrate on making money when they are in a financial bind due to debt and a lack of income,” advises attorney Solomon.
Seniors with a certain level of skill and vigor are excellent candidates for the positions of consultant, subject-matter expert, and teacher.
According to Solomon, “Businesses typically hire consultants to help them with specific tasks or provide assistance during transitions.” Seniors can make a significant income, particularly if they have the experience that employers value. Additionally, seniors typically have some discretion over how long they labor.
Consider, also, Solomon advises looking into online or remote employment as well. Just be cautious of con artists, which include practically anyone who requests upfront payment to set up your home office.
Finding your sweet spot can be difficult, but the local disability services or unemployment office may be able to assist, says CFP Zigmont. If you have restrictions, consider possibilities for occupations with shorter hours or less physical labor. Prior to worrying about the correct income, locate something you adore.
Taxes
Some elderly people on fixed incomes may earn less than the minimum required to file a tax return. The others should go out of their way to make sure they’re paying Uncle Sam exactly what is owed and no more (check with the IRS or a certified tax preparer).
- Credit for the Elderly: Low-income individuals who will be 65 or older by the end of 2021 and are eligible may claim a credit that lowers their tax obligation from $3,750 to $7,500. To find out if they qualify, seniors should contact the IRS or their tax preparer.
- Seniors’ Standard Deduction: Since the Tax Cut and Jobs Act of 2017 added provisions to streamline filing, the standard deduction has been used by the majority of taxpayers. The standard deduction for seniors filing solely for the 2021 tax year is $14,250. A standard deduction of $27,800 is available to married senior couples filing jointly.
- Medical bills: Seniors who have a lot of medical bills may be able to get an itemized deduction that is better than the standard deduction.