Cutting Corners

Cutting Corners:

Pinched by the Economy, Older Adults Put Themselves at Risk

Evidence is mounting that older adults are cutting everyday expenses to keep up with the economic downturn. In a report released in May by AARP titled "The Economic Slowdown's Impact on Middle-Aged and Older Americans, "59 percent of seniors 65 and older surveyed said they'd found it more difficult to pay for essential items such as food, gas and medicine." Local senior-care experts warn families to be on alert to make sure seniors aren't cutting too deeply. Warning signs include skipping medications, pulling the plug on air conditioning and canceling social outings.

Omaha, NE (PRWEB) July 15, 2008 -- Evidence is mounting that older adults are cutting everyday expenses to keep up with the economic downturn. Local senior-care experts warn families to be on alert to make sure seniors aren't cutting too deeply. Warning signs include skipping medications, pulling the plug on air conditioning and canceling social outings.

• Read 10 Cost-Cutting Warning Signs for Seniors
  
• Read 10 Ways Seniors Can Stretch Their Dollars
  

In a report released in May by AARP titled "The Economic Slowdown's Impact on Middle-Aged and Older Americans," 59 percent of seniors 65 and older surveyed said they'd found it more difficult to pay for essential items such as food, gas and medicine. Nearly half (47 percent) said they found it more difficult to pay for utilities such as heating, cooling or phone service. Forty-six percent have reduced the number of times they eat out and 45 percent cut back spending on entertainment.^1.

"Cuts of essential items such as food and medication should be of immediate concern to seniors' families," said Paul Hogan, Co-Founder and CEO of Home Instead Senior Care.

"Other reductions in spending can lead to less obvious issues. One of the biggest problems that we see is senior isolation, which has been magnified during this troubled time in our economy with the high price of gas," Hogan added.

"When seniors' families live a distance from their loved ones, or when Boomer children are busy trying to make ends meet themselves, an older adult can get in trouble very quickly. That's why it's so important that someone look out for the well-being of seniors to ensure they are safe in their homes and eating properly, taking their medications and able to maintain their appointments and social life," Hogan said.

Falling interest rates, fixed incomes and seniors' fears of past hardships can influence how they react to the current economic slowdown, according to Sheryl Garrett, CFP®, author of Personal Finance Workbook For Dummies® and several other books on financial planning. "Some seniors may be running short on money but, for others, there's always that fear of running out because they lived through the Depression. They know how ugly it can get."

It's important also for seniors to guard against fraud and too-good-to-be-true offers, Garrett advises. "Seniors want to get the best that they can from their investments without falling for scams or overselling tactics," she said. Older adults also should beware of CDs and fixed annuities that can promise higher interest rates, but force
seniors to lock in their money for longer time periods or otherwise put their investments at risk, Garrett noted. Always get a second opinion, Garrett advises.

"Seniors at all income levels may be facing choices they haven't had to make in the past," Hogan said."They should know where to go for help before they put themselves or their health at risk.Area Agencies on Aging, for instance, offer both food and gas assistance, so seniors should contact their local offices if they can't make ends meet.And companies such as Home Instead Senior Care can provide transportation assistance and help around the home, and serve as a second set of eyes for seniors' families."

Families also can play an important role monitoring seniors who have decided to scale back because of the economy.Even seemingly innocent decisions, like cutting back a little on groceries or air conditioning, can have a damaging impact.^1.

10 Ways Seniors Can Stretch Their Dollars

Following, from Home Instead Senior Care and various senior and financial experts, are 10 ways that seniors can stretch their dollars:

1. Seek the services of an objective financial planner. Sheryl Garrett, CFP®, founder of the Garrett Planning Network, said it's important for seniors to seek the advice of an objective fiduciary.The Garrett Planning Network (www.garrettplanningnetwork.com) features experts throughout the country who offer their advice on a fee-only basis.
2. Get a second opinion on investments and financial purchases. If you're approached about changing your investments or making a purchase, make sure you get another opinion.
3. Contact your local Area Agency on Aging if you're having trouble paying for food and gas. For more information or an office near you, log on to National Association of Area Agencies on Aging at www.n4a.org.
4. Get back to gardening. The economic downturn is generating a resurgence in gardening, and the over 55 crowd traditionally has been among the most avid gardeners.The national seed and plant company Burpee has experienced unprecedented 40 percent growth this year, double its normal rate, according to CEO George Ball.With food costs up as much as 25 percent in places, gardening provides a 1 to 10 savings ratio, according to Ball."In other words, for every $100 you spend on garden plants, you'll get $1,000 in produce.While $100 in groceries may last for only a couple of weeks, a senior can eat for six months on the produce from $100 in plants," Ball said.
5. Avoid convenience foods, which are more expensive.Watch for sales on fresh or canned fruits, vegetables and meats, which will be less expensive than convenience foods and better for you.
6. Look for deals on generic medications. Contact your pharmacist about ways to save money on your medications.
7. Walk when you can. If the gas prices are cutting into your social life, organize a walking club or walk with friends.
8. Carpool when you can't walk.There's economy in numbers.If you can't afford to drive somewhere solo or in pairs, contact others you know going in the same direction or the same place and share costs.
9. Keep drapes drawn during the heat of the day, and minimize opening and closing doors in the cold of the winter. Close off parts of the house you're not using to cut down on utility costs.
10. Financial planner Sheryl Garrett says that the ability of seniors to live at home helps cut costs as well. If you or a loved one needs assistance around the house, contact Home Instead Senior Care or visit the company's Web site at www.homeinstead.com.

For more information about Home Instead Senior Care, contact Dan Wieberg, Public Relations Manager at 888-484-5759 or via email at dwieberg@homeinsteadinc.com.

^1.View the AARP's The Economic Slowdown's Impact on Middle-Aged and Older Americans Economy Survey PDF