The Virginia Department on Aging has released figures on the growing senior population for the Commonwealth. It is estimated that by the year 2030, the population of 65+ citizens in the state will have doubled to 1.8 million since the year 2000.
For seniors here in Richmond and it’s surrounding areas, living and surviving in todays economic climate can be daunting. That factor alone is reason to take the time and reassess your financial stability.
The internet is full of web sites listing the 10, or 20 causes of economic instability or ‘debt’. There are a number of ’causes’ that bear mentioning, no matter if you are new to retirement, still working, or if you have not worked in years.
Yesterdays article discussed several resources available to seniors in the Richmond area that offer financial planning help, and they are worth looking into. There is also something the individual or couple can do at home that may prove to be fruitful.
Short list of debt causes
- Reduced income with the same expenses
- Poor money management
- Medical expenses
- Too little or no savings
- No money-communication skills
- Financial illiteracy
Reduced income, same expenses and Poor money management
This can hit you between the eyes, especially if you have recently left the workforce. If you are still spending the way you did while working, you are going to be in a world of trouble. This is where any financial advisor will tell you to sit down and make out a budget.
Keep in mind that poor money management goes along with Reduced income. By making a budget, you will see where the money is going, and will be able to have control over it.
All of us hope we will not be hit with a catastrophic illness, but it can be out of our control. Add to that finding out you have gaps in your coverage makes it worse. This is the time to review your medical coverage.
Too little or no savings
Too many seniors today think they can rely on Social Security for their retirement needs. Sorry to say this, but it does not work! Ideally, financial planners suggest that a backup nest-egg covering 3-6 months of expenses be in place. What they are saying is this; If your expenses run to $1000 per month, then you should have $3-6000 in savings for an emergency.
No money-communication skills and Financial Illiteracy
Not being able to sit down and talk with your spouse, or a family member about financial subjects can hurt in the long run. If it has not been done yet, then this is the time to open that dialogue. Things always look brighter when you can share them with someone.
Financial illiteracy is self-explanatory. This writer knew a senior several years ago who lost her husband. While in itself sad, what was even sadder was the fact that she did not know how to balance her checkbook, or even pay a bill. She had never had to deal with anything of a financial nature. Don’t let that happen to you. Educate yourself.
Again, all of our seniors here in Richmond need to remember that you are not alone when it comes to dealing with problems that may seem to be overwhelming. If you thought this article was helpful, please let me know.