Here is more reason to be frugal with your Social Security payments. According to statistics, seniors have lost at least 30% buying power since 2000. Retiree dollars must be stretched to the max because the cost of common expenses is skyrocketing. Below are examples and how to keep your costs low.
- Prescription drugs
What is worth $1,000 in prescription in 2000 is close to $4,000 today. That is an increase of over 250%! Whenever possible, buy generic to keep your expenses down.
- Medicare Part B premium
Preventive healthcare is a big part of staying healthy throughout your golden years. Unfortunately, Medicare Part B premium has more than tripled in the past two decades and increased by up to 200%.
- Home insurance
According to a Senior Citizens League study, the cost of homeowners insurance across the country has increased to at least 170%. If you want to save up, consider downsizing, renting a room in your house, or switching home insurance provider.
- Home heating
Energy bills are skyrocketing out of control. If you live in a colder climate, you may want to relocate to a cheaper place. The average cost of heating has jumped close to 200% from 2000.
- Vet services
Most seniors keep pets for company. Unfortunately, it is hard to keep up with the bills once your furry friends fall into ill health. Pet owners spend at least $300 yearly on vet bills so make sure you are on top of your preventive care to keep those vet bills down.
Medicare helps in paying for healthcare but it does not cover everything. Seniors are expected to pay more for their healthcare today with the annual cost of total medical care rising to over $14,000 without including health insurance premiums.
- Real estate taxes
Here is more reason to move to an assisted living facility: real estate taxes are rising. Despite the tax breaks from the local government, most seniors still have to pay over $1500 in real estate taxes.
- Potatoes and oranges
A 10-lb sack of potatoes has increased by as much as 168% and oranges by 120%. Surges in demand may have influenced these so stock up and buy in season to keep costs down.