Seniors who rely on government insurance programs may soon face a funding crisis. What does that mean for their housing needs?
Is Social Security running out?
Social Security is a major source of income for many seniors, with nine out of ten Americans aged 65 and older receiving benefits. However, the federal program's reserves are projected to run out one year earlier than previously forecasted. By 2034, only 80% of scheduled Social Security benefits will be paid out.
Meanwhile, states have resumed the Medicaid redetermination process after a three-year pause during the pandemic. As a result, many retirees are being told they no longer qualify for coverage. Some are being evicted from assisted living facilities as a result.
Without Medicaid, seniors may have to pay out-of-pocket for medical treatments and long-term care services, which can quickly deplete their savings and limit their ability to afford housing. When Social Security benefits are reduced or eliminated, many seniors may struggle to pay for basic necessities.
Renting to senior citizens
In the foreseeable future, more low-income seniors may be evicted from assisted living facilities, while others could be forced to sell their homes and downsize to more affordable rentals. Property managers can help them adapt by offering units that meet the needs of senior renters. Because relocation can be traumatic to the elderly, they may prefer single-family homes over unfamiliar apartments.
Property managers who already rent to senior citizens may need to be especially sensitive to their financial situations and work with them to find solutions that allow them to live comfortably in their golden years.
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