Social Security and Medicare

Social Security is a retirement living fund and disability pension for disabled workers. The amount of moneyeach individual will receive is dependent upon the amount of money paid into the fund during his or her working years. If a husband/wife  passes , the surviving spouse is entitled to widows or widowers pension. For the majority of Americans, Social Security benefits will be their big provider of wages when they retire.

Medicare

Medicare is offered to a large number of people age 65 and older. Medicare purchases home care services that fit in the category of “home healthcare” or “skilled care”. This means that the service must be provided by a professional, must be ordered by a physician and the care recipient must be homebound in order to receive it. Medicare won’t cover companion home care services. It does not cover private duty home care services.

Private Income

For many consumers, net income from different sources such as income off an established business enterprise may have a secure margin in their bank account by which to finance home care services they may need now or sometime soon. Any CDs related to these accounts are also an added gain.

Retirement funds such as a 401(k), IRA, Keogh or other such categories are solutions to consider also when determining how much and which level of care is needed for the senior loved one.

Pension plans provided to employees of some companies have provided adequate earnings for the retirees to live on and supplement other revenue they may have.

Stocks And Stock Mutual Funds

Some retirees are living off stocks or funds from the stock market. It is true that with the instability in the stock market of recent years, this is changing the way some individuals are looking at retirement income. There are still about 14 percent of retirees that have an income from this source.

Because of tax advantages for withholding stocks outside of retirement accounts and the income tax they must pay on withdrawals from the traditional 401(k)’s and IRA accounts, it is a good idea for seniors to have a good investment firm or certified financial planner helping them.

Home Equity

The equity earned on a home is another way of financing a retirement and any home care services needed in their advancing years. Sometimes the adult children are unable to provide all the care for their parents and must rely on some in-home care of their loved ones. This is just one more avenue that can be explored for possible means of financing home care for the family. There are more advertisements than ever about reverse mortgage as a way of having a retirement fund. Most financial planners will advice this as a last resort only.

Veterans Aid & Attendance Pension

This pension allows for veterans and the surviving spouses financial support that are in need of  home care services this includes individuals who are in nursing homes and assisted living facilities.

Medicaid or Medi-Cal

Medicaid or Medi-Cal (in California) is a state funded program for individuals that require home care services (IHSS), are in a skilled nursing or intermediate care home and do not have any other income other than Social Security benefits.

With just a little research and preparation , home care services for the elderly need not be a concern to the adult child. Whether the time is today or in the future, a seemingly daunting task is actually quite easy to navigate with proper planning.