Cutting Corners

It seems as though problems with the economy are affecting nearly every area of our lives. Now, evidence is mounting that older adults are cutting everyday expenses to keep up with the economic downturn.

Local senior-care experts warn families to be on alert to make sure seniors aren't cutting too deeply. Warning signs include skipping medications, pulling the plug on air conditioning and canceling social outings.

In a report released in May by AARP titled "The Economic Slowdown's Impact on Middle-Aged and Older Americans," 59 percent of seniors 65 and older surveyed said they'd found it more difficult to pay for essential items. Those are things like food, gas and medicine. Nearly half (47 percent) said they found it more difficult to pay for utilities such as heating, cooling or phone service. Forty-six percent have reduced the number of times they eat out and 45 percent cut back spending on entertainment.1

Cuts of essential items such as food and medication should be of immediate concern to seniors' families. Other reductions in spending can lead to less obvious issues. One of the biggest problems that we see is senior isolation. That issue has really been magnified during this troubled time in our economy with the high price of gas.

An older adult can get in trouble very quickly. Especially when families live a distance from their loved ones, or when Boomer children are busy trying to make ends meet themselves, That's why it's so important that someone look out for the well-being of seniors. You want to know they are safe in their homes and eating properly, taking their medications and able to maintain their appointments and social life.

Falling interest rates, fixed incomes and seniors' fears of past hardships can influence how they react to the current economic slowdown. That's according to Sheryl Garrett, author of Personal Finance Workbook For Dummies® and several other books on financial planning. Some seniors may be running short on money but, for others, there's always that fear of running out because they lived through the Depression. They know how ugly it can get, she explained.

It's important also for seniors to guard against fraud and too-good-to-be-true offers, Garrett advises. Seniors want to get the best that they can from their investments without falling for scams or overselling tactics. Older adults also should beware of CDs and fixed annuities that can promise higher interest rates, but force seniors to lock in their money for longer time periods, Garrett noted. Always get a second opinion, she advises.

Seniors at all income levels may be facing choices they haven't had to make in the past. They should know where to go for help before they put themselves or their health at risk. Area Agencies on Aging, for instance, offer both food and gas assistance. And companies such as Home Instead Senior Care can provide transportation assistance and help around the home. We also serve as a second set of eyes for seniors' families. Families also can play an important role monitoring seniors who have decided to scale back because of the economy. Even seemingly innocent decisions, like cutting back a little on groceries or air conditioning, can have a damaging impact.

So what signs should families look for to warn them that a senior might be putting themselves in harm's way? Here's some information from Home Instead Senior Care and the National Association of Area Agencies on Aging. If you're a family caregiver, ask yourself the following questions.

1. Is your senior's home too warm in the summer too cold the winter?

2. Is the lawn not getting mowed nor is the sidewalk getting cleaned in inclement weather?

3. Is your loved one complaining about not being able to fford medications?

4. Are home repairs not getting made?

5. Is there a shortage of food in the house?

6. Is your senior skipping doctor's appointments?

7. Is your older adult staying home more and becoming isolated?

8. Is your senior cutting out entertainment?

9. Does your loved one eat out less?

10. Did your senior cancel a vacation?

If you're an older adult experiencing difficulties because of the economy, contact your local Area Agency on Aging or Home Instead Senior Care office. Or, if you have a financial issue, contact the Garrett Planning Network.

Speaking of finances, Home Instead Senior Care and the Garrett Planning Network have come up with some tips for ways that seniors can stretch their finances.

1. Seek the services of an objective financial planner. Sheryl Garrett, founder of the Garrett Planning Network, said it's important for seniors to seek the advice of an objective fiduciary.

2. Get a second opinion on investments and financial purchases. If you're approached about changing your investments or making a purchase, make sure you get another opinion.

3. Contact your local Area Agency on Aging if you're having trouble paying for food and gas.

4. Get back to gardening. The economic downturn is generating a resurgence in gardening. The over 55 crowd traditionally has been among the most avid gardeners.

5. Avoid convenience foods, which are more expensive. Watch for sales on fresh or canned fruits, vegetables and meats, which will be less expensive than convenience foods and better for you.

6. Look for deals on generic medications. Contact your pharmacist about ways to save money on your medications.

7. Walk when you can. If the gas prices are cutting into your social life, organize a walking club or walk with friends.

8. Carpool when you can't walk. There's economy in numbers. If you can't afford to drive somewhere solo or in pairs, contact others you know going in the same direction or the same place and share costs.

9. Keep drapes drawn during the heat of the day, and minimize opening and closing doors in the cold of the winter. Close off parts of the house you're not using to cut down on utility costs.

10. Financial planner Sheryl Garrett says that the ability of seniors to live at home helps cut costs as well.

If you or a loved one needs assistance around the house, contact Home Instead Senior Care or visit the company's Web site at www.homeinstead.com.