What Happens if Seniors Have No Money? (2024)

The aging process can be challenging, even with the support of family and sufficient financial resources. While some seniors have preserved a nest egg after years of working and saving, others are burdened by meager assets. Here’s what happens to older adults who have little to no money.

How common is poverty among the elderly?

According to the US Census Bureau data, poverty has increased among the older population. In aging adults 65 years and older, the poverty rate jumped from 8.9 percent in 2020 to 10.3 percent in 2021. These percentages mean that one million more seniors rely on scarce resources to survive.

In total, six million aging adults live below the poverty level. Despite Social Security and Medicare, a concerning number of older people live with limited financial means. These government programs are not sufficient enough to lift seniors out of poverty.

Elderly women who live alone suffer slightly harsher circ*mstances than aging men. About 54 percent of older women who live alone are considered poor according to federal poverty standards or are unable to bring in enough income to pay for daily essentials. About 45 percent of men experience the same.

What are the costs associated with growing older?

The cost of aging is high. Seniors must pay for health care, transportation, housing, food, and miscellaneous expenses. As inflation soars, expenses for elderly individuals increase. Seniors struggle upon losing jobs, as many did during the second and third years of the pandemic.

An older person who lives alone must bring in $1,873 per month if they do not have a mortgage and $2,256 if they rent a home. A senior with a mortgage and who lives alone must come up with $2,842 per month in order to cover their expenses in 2021.

In a household of two elderly individuals without a mortgage, their monthly income should be $2,838. Aging couples who rent must have $3,223 in income per month. Senior couples without a mortgage will make ends meet with $3,087 per month.

Social security benefits pay a fraction of what a senior requires to cover basic living expenses. For a senior who lives alone and is in good health, Social Security covers 68 percent of basic living expenses; the percentage increases to 81 percent for an elderly couple in the same situation.

If seniors struggle with chronic illness or suddenly become ill, their medical expenses could quickly reduce their financial savings. In addition to becoming ill, many aging people worry that they will be unable to afford living in their own home.

Do government programs offer financial support?

Fortunately, need-based government programs, like Medicare and Medicaid, can be helpful financial resources for seniors who develop medical issues. Medicare covers many medical expenses for individuals over the age of 65, and Medicaid can provide coverage for eligible low-income seniors.

Aging adults without money to support them through the rest of their lives can stay in a nursing home for up to 100 days—and Medicaid will cover the cost for this brief period. Seniors who reside in an assisted living facility and run out of funds will be evicted.

Elderly individuals who are unable to turn to family for financial support and have no money can become a ward of the state. This may be the case if the senior develops a health emergency and is no longer able to live alone.

In the event a senior becomes a ward of the state, a guardian—someone the aging adult does not know—will be appointed to help make decisions about his or her living situation. However, becoming a ward of the state is far from ideal and should be a last resort.

How can seniors improve their financial security?

Financial concerns plague many seniors. But starting conversations early on with loved ones can help the elderly plan for the future. Funds directly provided by the family are an option when seniors are ineligible for state and federal programs, or these resources are inadequate.

Seniors and their family members might consider combining resources and sharing the burden of care tasks. Such a solution can be effective for the long-run and meet the needs of the senior without overtaxing the family’s financial resources and reducing their willingness to help.

Aging adults without the benefit of family support might consider returning to work. Studies show that people over 55 are the most successful at gig work, with one-third of gig workers being retirees. Seniors with the right skills can take advantage of the gig economy and find lucrative opportunities.

Cashing out or selling life insurance policies are additional ways for seniors to pay for life essentials. Alternately, insurance conversion converts a life insurance policy to a long-term care payment plan. Reverse mortgages are an option for seniors who own their home.

Seniors who bring in a monthly income have the ability to pay for various expenses, from food and housing to home care, that enhance their quality of life. Assisting Hands Home Care services help seniors with not only completing daily tasks but finding local resources that cater to the elderly.

We can point seniors to their local Area Agency on Aging for assistance with essential services. Our caregivers also provide direct support to older adults in the comfort of home. Professionals from our home care agency are an invaluable resource to keep seniors physically and emotionally healthy.

Assisting Hands Home Care professionals provide assistance with personal hygiene tasks, perform light housekeeping, shop for groceries, prepare nutritious meals, give medication reminders, assess the home for fall risks, and offer safe transportation. Our compassionate companion care services keep loneliness and isolation at bay.

Elder care from our reputable agency is convenient, affordable, and flexible. Families and their aging loved ones are reassured by the dependability of our professionals and the quality of care we provide. Call our Sarasota, Florida, location to schedule an in-home consultation and start senior home care today at (941) 444-2515.

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