How to help a retired person facing financial difficulties?

Financial difficulties for a retiree moving into a senior residence can be particularly challenging for both the retiree and their family. Housing costs are often higher than retirees’ monthly income, which causes significant financial stress along with a sense of lost autonomy. When attempting to help and address a retiree’s financial difficulties, several factors should be considered, such as the additional costs of living in a senior residence and the available financial assistance programs. This article will guide you on how to help a retired person facing financial difficulties.

What are the additional costs to consider in a senior residence?

In addition to basic fees, additional costs can quickly accumulate: specialized care services, medical expenses, mobility aids, recreational activities, and dining services. In private residences, some services, like laundry or wellness care (e.g., haircuts, pedicures), must be paid for separately. As these fees can vary from one residence to another, it is important to inquire in advance.

Financial assistance programs for retirees

In Quebec, retirees can access financial assistance programs to help ease their financial burden, such as:

• Guaranteed Income Supplement (GIS): A federal financial assistance program for seniors aged 65 and older who already receive the Old Age Security (OAS) pension and have low income.
• Old Age Security (OAS): A federal pension paid monthly to all Canadians aged 65 and older who have lived in Canada for at least 10 years after the age of 18.
• Allowance for the Spouse and Allowance for the Survivor: Allowances for individuals aged 60 to 64 whose spouse receives the OAS and GIS, or for widows and widowers with low income.
• Solidarity Tax Credit: Financial assistance paid to low-income individuals to help cover municipal and school taxes, as well as the cost of certain basic services.
• Shelter Allowance Program: A provincial program for low-income individuals aged 50 and older who spend a significant portion of their income on housing.
• Rent Supplement Program (RSP): A provincial program that allows low-income households to live in private market rental units, housing co-ops, or non-profit housing organizations while paying rent similar to that of subsidized housing. Tenants benefiting from this program pay rent equivalent to 25% of their income.

How to help a retired person who is in debt?

If a retiree has not properly planned for retirement and is unfortunately in debt, debt payments will take up much needed resources from their budget which increases the deficit. As personal finance professionals, we cannot help directly in essential needs and government programs. However, we can help reduce or even eliminate monthly debt payments. To support a retired person facing financial issues, it is simply a matter of having an open conversation and assisting them in scheduling an appointment with us. They will then receive a free financial evaluation to identify possible solutions to their debt problems. Relieved on this front, the retiree will have a better chance of making ends meet and enjoying a peaceful retirement.