3 ways retirees can improve their finances right now
Finances are strained for millions of Americans right now.
Not only is inflation on the rise again and currently sitting at its highest point in three years, but the hope for interest rate cuts this year has largely subsided. And, if inflation continues to grow, interest rate hikes may actually be back in play. Combined with a rising oil price and softening wages, many find themselves taking a closer look at their budget right now. That's especially true for seniors and retirees, many of whom are reliant upon a limited mix of savings, retirement funds and Social Security benefits.
While retirees will be limited in what they can do to impact broader economic trends, they're not powerless to adjust their own finances, even if they may feel unsure of how to do so right now. That said, there are multiple ways retirees can improve their finances, and they can do so quickly and effectively, potentially both growing their money and reducing their expenses as soon as this summer. Below, we'll detail three specific moves to consider now.
Start by reviewing your credit card debt forgiveness eligibility here.
3 ways retirees can improve their finances right now
An improvement in your finances doesn't always mean making more money or earning more interest on your current funds, although that helps; it also means reducing expenses and paying down debt to free up cash for other needs. Here are three specific ways retirees can improve their financial health right now:
Review their debt relief solutions
With the average credit card interest rate over 20% right now and household debt sitting at an all-time high, retirees should not start by seeing how much additional money they can take in, but instead with how they can stop sending so much money out. If you're dealing with high-rate credit card debt now, which compounds each day, start by reviewing your debt relief solutions.
From credit card debt forgiveness to debt management programs to counseling and consolidation, there's likely a viable path forward right now, some of which don't even come with fees. You won't know which is right for you, however, until you take the time to thoroughly consider all of your options.
Learn more about the debt relief options you qualify for now.
Revisit where they keep their money
If your money is sitting in a traditional savings account now, no matter how much or how little you have, consider taking prompt action to move it out. The average rate on a traditional savings account is just 0.38% right now, but it's around 4% with a certificate of deposit (CD) or high-yield savings account, and only marginally less for a money market account.
With multiple options offering exponentially higher rates on your money, it makes sense to make a move as soon as possible. And, with a CD, the rate you lock in now will remain the same until the account matures, adding another layer of protection and predictability that can be advantageous for retirees.
Get started with a CD account online today.
Reconsider their insurance options
Even if you're fully insured and are happy with your coverage, it still makes sense to periodically review your plans for cost-saving opportunities. This may mean taking the time to shop around for life insurance policies, long-term care insurance options and even Medicare supplemental plans.
But that could be time well spent, especially if it results in better coverage tailored to your needs and budget. It may also be worth revisiting your coverage amounts, as you may need more or less now than you did when you opened your policy, and if it's less, that likely means smaller premiums and more money back in your pocket.
Review your life insurance options here to learn more.
The bottom line
There are multiple ways for retirees to improve their finances right now. While it will take time, effort and more than a few phone calls, the result could be lower costs, greater savings and enhanced financial security. And while that's always important for retirees with limited budgets, in today's volatile economic environment, it's even more so. Being proactive, then, could be the difference between bridging this current gap with relative ease or further stressing over your deteriorating financial conditions.
