The Importance of Financial Responsibility for Seniors

By the time most people reach their golden years, they have a history of being responsible both financially and societally. The question people approaching retirement ask themselves is, did they budget enough for retirement and is there  time to continue saving and be  fiscally responsible? Here’s what you need to know about the relevance for seniors and finances

How Responsible Should You Be? 

When you ask yourself whether it’s still important to be financially responsible as a senior, you will find that it is more a question of “how responsible should you be?” Everyone’s circumstances are different which means financial responsibility varies based on your current situation since no-one wants to struggle financially

Many seniors are on a fixed income and some may have been unable to save enough to cover unexpected costs. People avoid thinking about unpleasant possibilities such requiring and paying for memory care, long term care in an assisted living facility, nursing home costs or medical bills. Often, the financial responsibility for these gets transferred to Medicare or family.

If you can support yourself covering medical costs, have a home and can pay for other expenses, you are in a good place to enjoy your golden years. Having cash savings, and investments to rely on allows you to enjoy life and reduces the stress of worrying about how to pay for things. 

Does it Pay to Keep Spending to a Minimum?

Do you really have to limit your spending when you’re a senior? It all depends on how financially irresponsible you can afford to be.

There are other factors to take into account as well. For example, do you still have people in your life that are depending on you for financial assistance? Although you might have enough money to sustain your lifestyle, what if you have someone that still needs your help? Do you have grandchildren that need help with college tuition? Your child could be in the process of buying their first home or might need help to pay for a wedding. 

These are important questions to keep in mind when making financial decisions as a senior and to ensure that you have enough money for yourself to live comfortably and always try to have enough savings for those unexpected expenses.

How Much Is Enough?

As a senior, you will need a budget and savings to cover many of the same expenses that you had prior to retirement. For example: Food, clothing, home, utilities, transportation, health insurance, travel and gifts.

According to Fidelity, you should “expect to spend 55%–80% of your current income annually in retirement” and “Expect 15% of your living expenses to be related to health care expenses after you retire, year in and year out”.

Unexpected expenses, such as medical bills, always come up and have savings set aside to cover these is important.  Inflation should also be taken into consideration.  2% per year minimum is a good place to start and if you look at 2021, inflation is 6% and this took many by surprise which effects your living. 

How to Free Up the Cash You Need 

What options do you have if you realize you don’t have enough money to cover your expenses and you anticipate you have many more years of living?  Make a list of your assets is the first step and then decide what you can sell or live without to free up income. You could sell your home and downsize, sell some investments, valuables, reduce your living costs, but what if you don’t have these options?  Asking for financial help from your family is typically not your first option.  

Naturally, some options are better than others. One option many seniors don’t realize is that they can sell their life insurance policy in a life settlement transaction for cash.  A life insurance policy in most cases is one of the most valuable assets seniors own and can be sold for a lump sum cash payment.  The advantages of selling a life policy can provide financial stability for the future that hasn’t been considered, and afford you the ability to maintain or improve your lifestyle.  

The cash received can be used for whatever you choose! Pay medical bills, go on the vacation you always dreamed of, move to another country or state, help the grandchildren with college tuition, or simply play tennis and golf at the country club. 

MRE Finance is the Life Settlement Option 

If the time has come where you need cash to live the way you want, condisre a selling you life insurance policy and you need to speak with MRE Finance. You can speak with a specialist by calling 1-800-521-0770 or find out what your life insurance policy is worth in minutes using the FREE life settlement calculator

MRE Finance will be able to provide the cash payment to you in approximately 4-6 weeks. (timeline could vary based on your insurance company providing the required documentation). Talk to MRE Finance and you can enjoy you financial freedom sooner than you realize. 

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