Common Financial Problems That Seniors Face

The elderly population certainly faces a handful of financial stresses and difficulties. Many of these issues result from being retired and not having a steady income. This article will discuss the most common financial difficulties that seniors all over Canada face.

Running Out of Money

Most seniors have an RRSP in place, which they put money towards for years before their retirement. Yet unfortunately, depending on an individual’s financial circumstances, they sometimes may run out of money during their retirement. Unfortunately, when this occurs, they do not have many options. 

Solution: If they have family, they luckily have a backup for housing and necessities. Yet unfortunately, there is a vast percentage of seniors do either have family that lives far away or have no family at all. 

Care Facilities

Many retirement homes and care facilities are very high-priced. With the pandemic right now, the cost is only heightened. This is because there are such a shortage of staff and health care assistants available. With such high fees for living, many older ones have to face spending an extreme amount every month. This can cause minimal spending on other things. 

Solution: If a senior is paying way too much out of their budget for a retirement home or care facility, one option is to find a different one. Although this can be a complex process, such as moving and waiting for an opening at another facility, it may be worth it if it is a less expensive option. If most homes are around the same price in an area, then a senior may need to receive assistance from the government. In Canada, there are a few support programs whose purpose is to help those who do not have much money left. 

Being Scammed

Every year, scamming seems to be increasing much more. For the elderly community, scammers can seem very legitimate and genuine when contacting. Most scammers will send letters or calls to seniors, mainly asking for money. They may use different tactics, such as saying it is a bill or taxes. Sadly, many give away thousands of dollars to these scammers for how accurate it sounds. Unfortunately, when they find out that they were scammed, it is too late to get their money back. 

Solution: This is a severe problem in the elderly community, and there certainly needs to be a change. Making sure that seniors are aware of scammers and their methods is a primary tactic in lowering these occurrences. 

Health Care

As retired individuals get older, they will begin to develop physical conditions. Although Canada provides a good amount of health coverage for medication and other prescriptions, you still need to pay. Depending on how much health care a senior receives, it can certainly add up. Many require canes, walkers, and medication for specific conditions. These costs can become overwhelming, especially if these prescriptions are needed every month. Unfortunately, paying for medicine can cost as much as rent for some seniors.

Solution: To avoid being weighed down by these regular payments, try speaking with your family doctor. Go over your medical situation and see if there are any other lower-priced options. There are also many support programs for the elderly, as mentioned above previously. These programs are put in place to assist seniors in their finances and everyday living. 

Seniors have a lot of financial problems, which can be very problematic. However, when they have options available, they can live their lives fully.

If you have any questions about other common financial issues, please reach out to us!

Sources

-Assisted Living Directory (2020). What Happens When My Money For Assisted Living Runs Out. Retrieved from https://www.assisted-living-directory.com/blog/what-happens-when-my-money-runs-out/

-Darley, Steve (2019). What Are Some of the Top Financial Issues For Seniors. Home Care Assistance. Retrieved from https://www.torontohomecareassistance.ca/common-senior-financial-issues/