Friday, May 13, 2016

Financial Advantages You Have When You’re Older

There are many people who feel anxious about getting older, and have a certain sense of panic about leaving their younger years behind them. 

There are reasonable concerns about getting older. Your physicality won’t be what it once was, and nobody likes achy joints. However, for those of us who have a few more years on our belts, society sets aside a plethora of exclusive benefits that almost make it worth it to get old. 

Aside from the maturity that comes with being a person who has lived longer, communities often offer financial benefits that are designed to make life more comfortable for the elderly, and make it easier to enjoy retirement and traveling when we’re finally ready for our golden years. 

Here are some financial advantages that you have when you’re older...

Reverse mortgages

Today’s housing market is pretty messy. Since the housing bubble burst in the 2008 stock market crash, we have seen a slow recovery and a reluctance on the part of many lenders to give out home loans, or to allow people to get second mortgages. 

This means that many people are unable to access the capital that they are putting into their home by paying their mortgage, unless they are going to straight up sell it. However, there is a specific type of maneuver that is available to people who are over the age of 62. 

This financial action is called a reverse mortgage, which allows people to access the value that they already own in their home, but without having to pay it back as long as they are alive and living in the home. This is a great way to access a good amount of capital, quickly, without having to worry about getting buried by the payments of another mortgage. 

To find out more about this process, check out this helpful 2-part series here.

Senior discounts

The average American tends to spend quite a bit of money eating out, as it consumes more or as much of people’s food budget as grocery shopping, nowadays. 

The good news for elderly folks, however, is that many restaurants and places learned the valuable lesson of respecting their elders, and decidedly offer a discount for people who have been around for over 65 years. 

Although it may only save a few dollars, here and there, senior discounts can add up to quite a pretty penny if you are the person who eats out at restaurants rather frequently. 

These discounts don’t just work for restaurants, either, though, but also are offered at many different concert venues, movie theaters, and even museums (although what person who lived during the stone ages really wants to visit a museum).

Senior tax deductions

If you know how to be savvy with keeping track of your expenditures, any person can set themselves up with nice deductions when tax season rolls around. However, this is especially true for people who are over the age of 65. 

While the standard deduction more most younger taxpayers sits at $6,300, that same number is a whopping $7,850 for senior citizens. Married couples who are over the age of 65 also get some extra deductions during tax time, with each spouse offering an extra $1,250 towards their deductions, or a full $15,100 if they are both 65 or older. 

There are also added deductions for medical expenses for citizens who are over the age of 65, as they are often in need of more medical care as they get older.

Social Security

Contrary to what many younger people believe, Social Security is not merely a tax. Social Security is a mutual fund that people pay into throughout their lives so that they can benefit from the amount that they put into it when they are ready to retire. 

At the age of 62, citizens start to pay less on Social Security payments than they did before. After the age of 66, they begin to start getting the payout of what they put into the system on a monthly basis. 

This makes Social Security notably different from a welfare program, as it is a system that is paid into and then paid out. The amounts that you get later on in life are dependent on how much you paid in, and then your payouts are adjusted for inflation and a COLA (cost of living adjustment).

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