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Grace Smith: Current economic picture anything but rosy for older adults




SmithMERCER GREENE

SmithMERCER GREENE

Inflation is at a 40-year high. Interest rates continue to rise. Consumer product prices are increasing.

The economic forecast: All news isn’t good news. The gloomy predictions are big concerns for older adults and family caregivers who may be responsible for a loved one’s finances.

In short order, we’re all faced with higher costs. Our utility costs increased — a big driver of the jump in the U.S. Government’s Consumer Price Index, which topped 9.1% in the past year — and larger grocery bills. The USDA’s price index for food now forecasts a 7.5% to 8.5% increase in food prices through the rest of 2022, compared to the 3.9% increase in 2021 and the 20-year historical average of 2.%.

Fresh fruits and vegetables may go up 8.5%, while meat costs are expected to increase nearly 10% and dairy products around 11.5%.

All necessities. All increasing at a stunning rate, especially for our older adults on fixed incomes.

Making ends meet is even more challenging when we carry debt into our later years. The National Council on Aging has tracked the situation for several years and found medial total debt for “older adult households was $31,300 in 2016, more than 2.5 times what it was in 2001.” Older adults are also paying credit card debt, and nearly 30% of older adult households are paying mortgages, home equity lines of credit or both.

There are, however, help and hope during increasingly difficult economic times.

Our AgeWell Middle Tennessee website includes several guides for older adults that may be helpful, in addition to our Directory of Services, which includes the region’s most comprehensive, trusted source for assistance, including financial assistance, and help in our 13-county service area throughout Middle Tennessee.

Locally, the United Way of Greater Nashville sponsors the Financial Empowerment Center (FEC), which offers free individual counseling for residents. Since it opened in 2013, the FEC has helped 8,969 clients reduce debt by more than $20 million and increase savings by more than $3 million. Counseling is available in English and Spanish, and there is access to language and translation services in most languages, according to the FEC website.

Appointments may be scheduled by calling (615) 748-3620 or going online to the Center’s website: www.unitedwaygreaternashville.org/financial-empowerment-center/.

Short-term assistance comes in July and August, with the annual “Tax-Free Weekend” on July 29-31, in which clothing and many other items under $100 are exempt from sales tax across the state of Tennessee.

Further, during the month of August, food and food ingredients will be tax-free, although there will be some exceptions, including dietary supplements and prepared foods.

Based on the current forecasts, however, all of us may be faced with higher consumer prices for the remainder of the year. One month of relief may be helpful, but the National Council on Aging’s budget tips for older adults may assist those aging adults and their family caregivers to plan for the rest of the year and beyond.

Among their budgeting tips are reviewing:

  1. Your out-of-pocket coverage and policies, including supplemental health insurance and prescription-drug plans, as well as life insurance and long-term care policies. Make sure you are getting needed coverage and the most cost-effective plans.

  2. Your Medicare insurance plan, reviewing opportunities to save money on co-pay and premiums and examine Medicare Savings Programs as an option.

  3. Your property taxes. The state of Tennessee has a property-tax relief program, and older adults and caregivers can call our AgeWell Helpline at (615) 353-4235 or send an email to info@agewelltn.org to be connected to the county trustee’s department for assistance.

  4. Your phone service. Do you really need a landline any longer? Could you qualify for assistance from the Federal Communications Commission’s Affordable Connectivity Program?

  5. Your senior discounts. Dozens and dozens of stores, entertainment venues and more offer senior discounts. The National Park Service offers a lifetime discount for older adults for an $80 one-time fee that provides admission to more than 2,000 recreation sites across the nation. There is also a $20 Senior Annual Pass as well.

There are many other savings available to older adults, and one of the best places to start or revamp financial planning is National Council’s Benefits Check-up online tool that will help determine eligibility for benefits and connect with information and tools needed to enroll.

Now is the time for older adults and their families to take stock of assets, liabilities and keep an eye on expenses during this difficult period. But there are programs and assistance at local, state and national levels to get through this time and continue on the path of aging well.

Grace Smith is the executive director of AgeWell Middle Tennessee, formerly the Council on Aging of Middle Tennessee. Before assuming the executive director position, she was a longtime volunteer, serving as chair of the organization’s Leadership Council and vice president of the board. Previously, she served as manager of the Meharry-Vanderbilt Consortium Geriatric Education Center, providing geriatric training to health profession students, faculty and practitioners.

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