How The Elderly Pay Their Expenses - 1812 Words

Knowing the basics of how the elderly pay their expenses is important to know for any healthcare student. I decided to pick this topic, because I wanted to have more knowledge about this topic, and felt I needed to fully understand the basics. I am glad I choose this topic, because I have learned so much. Social Security is the main way elders receive their income. This started in 1935, and in 2005, the average social security income for a man was almost $350 over the poverty level, and even less for a woman (Ferrini). In 2015, over 59 million Americans will receive almost $870 billion in Social Security benefits (Social Security Administration). I think social security is a great way for elderly to receive money. However, a lot of time†¦show more content†¦Another way elderly’s survive is by personal assets. This can be by savings accounts or home equity. For example, as a little girl I have always been taught to save money and I am glad I have been taught this lesson, because it is important to have extra money just in case. A lot of times people are not able to receive SSI or SS. Therefore, this is why having your own personally assets is important. However people may not have saved enough in order to survive, and are forced to work. But what happens to those who ar e not able to work? Some go to shelters, or become bums. Individual Retirement Accounts (IRA) is money set aside form paychecks, usually in stocks and bonds (Ferrini). There are some differences when it comes to IRA and 401k. Which I did not know of before I wrote this paper. What should be cleared is you may have both you do not have to just have one. Anyone who has earned income and is below the age of 70 can contribute to a traditional IRA, while only people who are employed at a company that offers a 401K can contribute to a 401k (FOOL). Some of the financing medical care I will be discussing are Medicare, Medicaid, (MediCal), US Department of Veterans Affairs, Indian Health Service, private insurance or out of elders’ pockets (Ferrini). There are four parts of Medicare. Part A is a hospital insurance, Part B is medical insurance, Part C is a private managed plan, and Part D is