According to the National Council on Aging, 80% of older adults face financial challenges now or are at risk of financial instability in retirement, a reality compounded by the rising cost of living.
If your parents struggle to make ends meet in old age, they may qualify for financial assistance programs. In this guide, we’ll explore options available to help you assist them in accessing the resources they need.
Key Takeaways
Key financial assistance programs include Supplemental Security Income (SSI), Medicare, Medicaid, and the Supplemental Nutrition Assistance Program (SNAP).
Eligible recipients of Supplemental Security Income can receive up to $943 monthly ($1,415 for a couple).
Trustworthy’s Family Operating System® allows you to organize and store your parents’ financial documents and information safely.
How to Determine If Your Parents Qualify for Financial Assistance
If your parents are struggling to manage monthly bills and other expenses, financial assistance may be critical. Many caregivers find it challenging to cover their parents' expenses alongside their own. Financial assistance programs designed specifically for seniors can provide much-needed support to ease this burden.
Determining your parents’ eligibility for financial assistance starts with understanding the specific requirements of each program. A good starting point is the Elder Index.
Developed by the Gerontology Institute at the University of Massachusetts Boston, the Elder Index evaluates whether seniors’ incomes are sufficient to meet basic needs. By entering details such as location, household size, housing situation (renting, owning outright, or with a mortgage), and health status, the tool generates an income benchmark tailored to your parents' specific circumstances.
If your parents are over 60 and their household income falls below the Elder Index benchmark for their location, it’s a strong indicator that they may benefit from financial assistance programs.
Types of Financial Assistance Programs for Seniors
There are a fair number of financial assistance programs that your parents may be able to use. We’ll explain how to apply for them and what they cover.
Personal finance expert AJ Smith advises, “Depending on your location and income level, your parents may be able to take advantage of everything from inexpensive assisted living centers to hot meal delivery programs.”
While doing in-depth research on what program is best for your parents, keep track of your notes and various assistance programs with Trustworthy. With Trustworthy’s Family Operating System®, you can store all your financial documents in a secure location that makes it easy to organize, access, and share them with others.
Social Security and Supplemental Security Income (SSI)
Created in 1972, the federal Supplemental Security Income (SSI) program offers monthly financial support to eligible older people with limited incomes.
According to the Center on Budget and Policy Priorities, 7.4 million people collected SSI benefits in January 2024 alone.
The monthly SSI benefit amount varies based on income, assets, and living arrangements. For instance, if your parents are still working, their SSI payment is reduced by $1 for every $2 they earn.
Also, for every $1 brought in from non-work sources, the SSI payment is reduced by about $1. Specific non-work sources include disability benefits, unemployment payments, and pensions.
Currently, the maximum monthly SSI payment for 2024 is $943 for one person and $1,415 for a couple.
So, how do you know if your parents are eligible for this type of funding?
Kelsey Simasko, attorney at Simasko Law in Mount Clemens, Michigan, explains that SSI is for people who are:
“65+ years old (blind or have a qualifying disability) who also meet an income and asset limit. Individuals may qualify for their program if they do not earn more than $1,971/month from RSDI, pension, and work income and if their individual assets do not exceed one house, one car, and $2,000 for a single person, and $3,000 for a married couple.
"It is important to note that the federal income cap is $2,971, but some states (like Michigan, California, Louisiana, Arkansas, Ohio, and Pennsylvania) allow a higher income limit.”
So, how do you apply?
Start the application process online through the Social Security Administration or request an appointment at your local office by calling 1-800-772-1213 (TTY 1-800-325-0778).
The online application takes no more than 10 minutes, and you will need to provide the following:
Personal details: name, date of birth, Social Security number, contact details, address.
Proof of citizenship: birth certificate, U.S. passport, or certificate of citizenship.
If not a citizen, proof of legal residency: permanent resident card or immigration document.
Proof of income: pay stubs, tax returns, etc.
Proof of living arrangements: lease agreements, property deeds, etc.
List of resources: statements from bank accounts, insurance policies, investment documents, and vehicle registration information.
There are a lot of documents your elderly parents need, and we recommend storing them with Trustworthy. Its AI-driven Autopilot tool simplifies household organization with intelligent features like filing recommendations and file name suggestions for quicker, more accurate document filing. Document summaries provide an at-a-glance understanding of your files, making them easy to store and share. With data auto-filling, your account is effortlessly populated with details extracted from your documents, saving you valuable time.
Medicare and Medicaid
Medical expenses are some of the biggest things elderly people spend their money on. Charlie Wise, senior vice president and head of global research and consulting firm TransUnion, explains:
“For older consumers, more of their income goes to non-discretionary things, like healthcare costs. That's why more of them are having trouble.”
To assist with medical expenses, the government provides two key programs: Medicare (a federal program) and Medicaid (a joint state and federal program).
Medicare provides coverage for people who are 65 and older, as well as younger people with qualifying disabilities or medical conditions.
Medicare is divided into four parts that address specific healthcare needs:
Part A (hospital insurance): Covers inpatient hospital stays, skilled nursing facility care, and some home health care. To qualify, the recipient or their spouse must have paid Medicare taxes for at least 10 years.
Part B (medical insurance): Covers outpatient care, doctor visits, and medical equipment. Premiums are based on income, with individuals earning above $103,000 a year paying higher premiums.
Part C (Medicare Advantage plans): Offers additional benefits, such as vision, dental, and hearing, through private insurers. Enrollment requires eligibility for Parts A and B.
Part D (prescription drug coverage): Provides prescription drug benefits for a monthly premium, which varies based on the plan.
Medicaid is designed to assist low-income individuals, regardless of age. Benefits vary by state, but common services covered include:
Inpatient and outpatient hospital services.
Early and Periodic Screening, Diagnostic, and Treatment services.
Nursing and home health services.
X-rays.
Family planning services.
Midwife services.
Transportation to medical care.
Food Assistance for Seniors
Seniors 65 and older with an income below 185% of the federal poverty guidelines (approximately $15,060 per individual) may qualify for the Supplemental Nutrition Assistance Program, or SNAP.
SNAP provides monthly benefits to help seniors purchase essential food items, freeing up funds for other necessary expenses.
The average SNAP benefit for one person is $118 a month and comes in the form of a card that can be used to purchase fresh meat, vegetables, snack foods, dairy products, and non-alcoholic beverages.
Your parents may also be eligible for excess medical expenses deductions. If they spend more than $35 on out-of-pocket expenses, they can deduct this from their income when applying for SNAP.
You can help your parents apply directly from SNAP online, by phone, or by mail, and it can take up to 30 days.
Housing Assistance Programs
Several housing assistance programs are available to seniors, including reverse mortgages, USDA housing repair grants, and initiatives from the U.S. Department of Housing and Urban Development.
For example, USDA grants help with housing repair loans for single-family housing and are offered at a 1% fixed interest rate over a 20-year term.
Homeowners 65 or older who have paid off or nearly paid off their mortgage can consider a reverse mortgage. This option allows them to convert home equity into cash without monthly repayments, unlike conventional mortgages.
Keep track of all financial documents and mortgage papers with Trustworthy. Use the collaboration features to share these documents with other family members, attorneys, caregivers, and others in your trusted network.
Financial Assistance for Veterans
If one or both of your parents are veterans, they may qualify for financial assistance through VA benefits.
The benefits include disability compensation, a pension, health care, home loan, insurance, and burial services
Veterans who are bedridden or require assistance with daily activities may qualify for Aid and Attendance (A&A), an increased monthly pension. Married veterans can receive an additional $1,478 to $2,727 per month, depending on their circumstances.
Utility Assistance Programs
Seniors struggling to pay for home energy bills can apply for the Low Income Home Energy Assistance Program (LIHEAP) program. In addition to paying utility bills, these funds can also be used to make energy home improvements to reduce utility bills. Each state has different qualification requirements.
The Weatherization Assistance Program (WAP) is another program that helps low-income families make changes in their homes to become more energy-efficient. People who use the program save an average of $372 a year after improvements are made.
Frequently Asked Questions
Can my parents apply for multiple financial assistance programs at the same time?
This will depend on what programs they’re applying for. The money they receive from one program may impact their eligibility for another.
Are there any tax implications for getting financial aid through programs like SSI?
If your parents earn a substantial income in addition to their benefits, they will need to pay income taxes.
Are there financial assistance programs for immigrant seniors or non-U.S. citizens?
Yes, immigrants 65 or older who have at least 40 U.S. work credits may qualify for Social Security benefits.
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