As a person gets older, their financial situation can shift greatly. One of the big financial changes people generally experience as they go into their elderly years is the entry into retirement, and the major shift in income situation that goes along with this.
However, retirement is not the only thing that can make a person's elderly years different from earlier parts of their life financially. Another is that elderly individuals have access to a range of different financial options and benefits that younger individuals generally do not.
One example of this that many people are aware of are senior discounts; there are many products and services elderly individuals can get for reduced prices. This is just the tip of the iceberg though when it comes to the special financial options available to the elderly.
For one, seniors can have new health care coverage options. A big reason for this is that, once a person hits 65, the option to sign up for Medicare can open up. An important thing to note though is that there are limits to the sorts of care costs Medicare will cover.
Also, as individuals get older, their options regarding their retirement accounts can open up. This is due to things such as account limits rising and early withdrawal penalties going away after individuals cross certain age thresholds.
Additionally, special tax rules apply to elderly individuals. As an example of this, seniors have some additional deduction options, such as an increased standard deduction. These special rules can create some unique tax-related opportunities for seniors.
The special options and benefits available to seniors can have all kinds of different planning implications. One is that they can affect what sort of estate planning setup, such as what kind of will and trust setup, would be best positioned for achieving a senior's particular goals. Thus, as a person is entering their elderly years, they should consider having an experienced elder law attorney review their estate plan to assess whether any adjustments need to be made to it to maximize its goal-achieving potential.
Source: U.S. News & World Report, "10 Financial Perks of Growing Older," Emily Brandon, Feb. 8, 2016