Top 5 Money Management Tips for Seniors

While many personal finance tips are geared toward young investors who are saving for retirement, those of us who have already reached retirement age also need money management advice. Yes, the golden years can creep up on us and with more people reaching 100 years old than ever before, we obviously have many more years in which to stretch our dollars.

Here are the top five money management tips for seniors:

#1. Apply for Social Security – You become eligible for Social Security at age 62, though you will earn more if you wait to apply when you are 65. If you need the money before age 65, by all means you should apply earlier. Ideally, you should have another source of income, though there are many seniors who get by on their benefits alone.

#2. Consider a Smaller Home – Are you still living in a large expensive home, even though all your birds have flown the nest? While you may be emotionally attached to your family home, it may be more sensible to downsize and reduce your monthly costs.

#3. Join the AARP – The American Association of Retired Persons, or AARP, is an organization devoted to helping seniors save money while living on a fixed income. Membership benefits include savings on food, hotels, insurance and more.

#4. Take Care of Yourself – Medical expenses can be the greatest source of financial hardship at your age. Try to prevent these costs by being sensible in your diet and activities. Attend your regular doctor's visits, get your annual flu shot and exercise with moderation.

#5. Meet With a Financial Planner – Financial planning is not just a young person's game. Ideally, you should have met with an advisor years ago and planned for your retirement. If you didn't, however, it is never too late to devise some asset allocation strategies. As I said before, you have many more years ahead of you to enjoy.

Though many of us like to think we are adequately planning for retirement, some of us are surprised at how quickly the years fly by. Living on a fixed income can be daunting at times, which is why you should follow the above advice. After all, this is the period in your life when you should finally be able to slow down, sit back and relax.


About the Author:
Heather P. Johnson is a freelance writer, as well as a contributor for Credit Card Lowdown, a site for finding credit card reviews. Heather invites your comments and freelancing job opportunities at her email address: heatherjohnson2323(at)gmail.com.