Six Tips For Seniors On How To Beat Inflation

Most people and families today are struggling financially while trying to keep pace with inflation. For seniors living on fixed incomes, the challenge of maintaining their standard of living as prices soar upwards is especially difficult. Adding to the concern is that economists predict it will be at least another year or longer before prices begin to lower for groceries, consumer goods and the general cost of living.
That’s the bad news. The good news is that seniors can minimize or avoid the pains of inflation with some smart financial thinking.
If you are a senior nearing retirement age, it’s wise to review the options you have regarding what age is best to begin collecting your Social Security benefits. While it’s tempting to claim benefits at age 62, waiting as long as possible to collect is one of the best financial decisions seniors can make. The closer you get to full retirement age (70 years), the more money you will receive each month and the difference between what you get at age 62 and what you can expect at age 70 can be considerable. Waiting until full retirement age also enables you to become more “inflation proof” because Social Security does provide for cost-of-living adjustments.
If you are a senior already collecting Social Security and worried about inflation, relax. Making simple, easy to do changes in how you live and manage your money can offset the rise in prices for essential goods and services. Here are some tips on how to wisely stretch your income further:
• Take advantage of all available senior discounts. This tip sounds like a no-brainer, but many seniors never bother to ask for pricing discounts that are readily available. Many cable TV, internet, and cellular phone companies have low-cost service plans specifically designed for seniors, but the discounts don’t happen automatically. You must contact these service providers and ask them for a price reduction. Seniors who ask for a lower price or better plan generally find success.
• Buy more store brand items instead of name brand when grocery shopping. Many seniors are brand loyal to a fault on things they purchase at their local supermarkets. Name brand products may have earned your trust, but if you compare ingredients, you will discover name and store brands are often identical in their ingredients. The only difference is that store brands are typically priced about 25% less than their name brand counterparts. Often, store and name brands are made by the same manufacturer with the only real difference being how the product is labeled.
• Eat at home more often. Going out to eat at a restaurant with friends is a nice social experience for seniors, but home cooked meals are much more nutritious and less costly. Instead of meeting at a restaurant, consider taking turns with those in your social circle and schedule gatherings at each other’s homes. The money you save on food and gratuity charges can boost your disposable income significantly.
• Use your home energy more wisely. Every senior knows that home energy prices are soaring. To offset the price increases, be a smarter energy user. Convert your home lighting to LED bulbs which last much longer and use only a fraction of the electricity. Learn how to program your thermostat so that energy use is minimized when you are away from the home. If you are going to be away for an extended period, turn your water heater down to its lowest setting so you are not paying to heat water that you are not using. Doing all these things in tandem will keep your home energy costs manageable.
• Objectively evaluate your home and living situation. For most seniors, home is everything. It’s where their children grew up, where memories live and where love resides. Maintaining a home is also the biggest expense incurred by seniors and for many, the money and effort required to maintain their current home has stretched them to the breaking point. There are many retirement communities and senior housing options available for those who have outgrown their current homes and living situations. Objectively evaluating better ways to live the best years of your life is another way to never have to worry about inflation again.
• Consider a return to the workforce. Contrary to popular belief, retirement is not everything. For many seniors, their retirement years become boring because they have too much time on their hands and too little to do with it. With so many companies having job openings today, opportunities abound for seniors who want to return to the workforce either full or part time. Working regularly or occasionally will not only help these seniors have a greater sense of purpose in life, but it will also boost their incomes to a point they no longer have to worry about bills due or rising prices. There is no better time than now for seniors to go back to work on their terms.
While seniors can’t control inflation, they can control how they spend, save, and budget their money. Inflation can be frustrating for seniors, but becoming a smarter consumer will make it more of a minor nuisance than a major headache.