CONSUMER FOCUS:Navigating the golden years
Retired? Relax
Seniors can tap into many resources to save money
Mary Brown of Amherst drives an 18-year-old van. These days, she is careful about where she takes it. “If I drive it around the corner, it costs me $4,” she quipped.
Like many seniors, the 80-year-old Brown is being more cautious about what she spends her money on. Gasoline is at the top of her list. When she runs errands, she tries to combine them into a single trip to conserve fuel.
Brown also buys vitamins, and isn’t about to give them up, but wonders if she can switch to a cheaper brand that she still trusts.
In conversations with friends, Brown finds she is not the only one thinking about how to save. “We’re echoing each other,” she said. “If you talk to anybody, they’re talking about the exact same things.”
The financial crisis that has put a pinch on many retirees’ savings is a culprit.
“Everyone’s afraid to open their [financial] statements,” said Eric Wiedemann, who with his wife, Lisa, co-owns the Western New York office of Home Instead Senior Care, which provides services to seniors in their homes.
Even before Wall Street’s turmoil began, the rising cost of food and other items were putting a strain on many seniors’ finances.
Experts say that seniors can tap into resources and take other steps to save money, without sacrificing important things like nutritious meals and medicine.
Some seniors admitted they have not felt a financial crunch. Bob Sommer of Amherst, who is retired from the corrugated box business, says he has not changed his lifestyle.
“I am spending as much as I can to help the economy,” Sommer said.
He also knows a bargain. Sommer was one of about 130 people eating lunch at the Amherst Center for Senior Services on a recent weekday. The suggested, voluntary donation for the meal was just $2.25.
“And you don’t have to cook,” Sommer said. Taking advantage of discounted meals is just one way seniors can protect their savings:
• Track your spending. “It’s never too late to create a household budget,” said David McNally, manager of government affairs with AARP New York. Making a list of your expenses might reveal areas where you can cut back. And think twice about “impulse buys.”
Rita Celmer of Williamsville said she has been watching her discretionary spending. “I won’t buy as many frivolous things as I used to,” she said.
• Search for savings. Seniors might be aware of options like the Home Energy Assistance Program (HEAP), which helps offset the cost of their heating bills, but they might not know if they are eligible. And there could be other programs or discounts they can tap into that they are not even aware of.
Seniors should reach out to agencies and organizations that can provide the answers, McNally said. “Don’t be afraid to ask for help.”
In the case of HEAP, the state announced this year that grants for the program will be larger and the eligibility for the program, which is based on monthly household income, is being expanded.
More information about HEAP is available through the Erie County Department of Senior Services at www.erie.gov/depts/senior services, or by calling the department’s hotline at 858-7870. To see the updated income guidelines for HEAP, go to National Fuel’s Web site at www.natfuel.com/ ForHome/heap_guidlines. htm. The county’s Department of Senior Services also has information on other programs and services. Visit its Web site or talk to someone at its office, 858-8526. It has a “benefits checklist” that can be viewed on the Web site (click on the “finance” heading) or mailed to your home.
“The biggest thing they call about is finances, the second is health care,” said Patricia Watson, supervisor of case management services for the department.
• Review health care costs. The county’s Department of Senior Services has an insurance resource line, 858-7883, to help seniors navigate things like the complicated Medicare Part D program for prescription drugs. Choosing the right plan will help keep your costs low while still receiving the coverage most suitable to you, Watson said.
The Pharmaceutical Care Management Association, which represents pharmacy benefit managers, suggests a few ideas for saving money on medication.
One is to use mail-service pharmacy for medicine to treat chronic ailments such as high blood pressure, said Mark Merritt, the association’s chief executive officer. By having the medicine mailed to your home, you save on gas from driving to and from a pharmacy.
Another idea is to switch to generic drugs when possible. “People are often surprised to find out there are generics for the brands they are taking,” Merritt said. Your doctor, health plan provider or pharmacist can help you identify what is available.
Merritt also suggests finding a doctor who uses electronic prescribing. That method can reveal if you’re taking medications that are redundant or no longer needed, or if there are cheaper alternatives for what you are taking, Merritt said.
• Scrutinize fees. The AARP suggests taking a close look at expense ratios on your mutual funds, interest rates on your credit cards and transaction charges on banking products. Changing to a lower-cost product could save you money, the organization says.
Also review monthly expenses like the phone service plan you’re using and see if there might be a cheaper alternative, Wiedemann said.
• Save on meals. The weekday hot lunch program for seniors at locations around the county, including Amherst’s, is one such example. Erie County residents who are 60 or older are asked for a suggested donation of $2.25, though they are not turned away if they cannot afford it. The centers where meals are offered also provide a variety of activities. For locations of places to eat, call 858-7639.
While many of these changes can help lead to savings, like switching to a doctor’s office closer to home, changing routines can be difficult for some seniors to adapt to, Wiedemann said.
And while saving money is important, Wiedemann said, seniors should not cut back so far that their quality of life suffers. Getting out to meet up with friends is valuable for maintaining social connections, he said.
Brown, who drives the 18-year-old van, said all of the attention on finding ways to save made her reflect on the days of World War II, when conservation practices like food rationing were under way.
“You start thinking of different cycles in our history and what has happened,” she said.
