Learning Objective
Identify and describe the major factors contributing to financial instability in older adults, including sources of income, high medical costs, and risks associated with low financial literacy.
Financial Stability in Older Adults
| Factor | Details / Examples |
|---|---|
| Inadequate fixed income | • Social Security: Government-provided earned benefit; eligible after >40 quarters of work; spouses who were homemakers may be dependents • Pensions: Employer-provided earned benefits • Investment income: Often limited in older adults |
| High medical costs | • Chronic illnesses, medications, and hospitalizations can significantly strain finances |
| Low financial literacy/vulnerability | • Increased risk of exploitation by unscrupulous investment advisors • Sometimes, family members may take advantage of older adults financially |
