Author: Maurie Backman

Social Security has been under scrutiny now that the Department of Government Efficiency (DOGE) is digging into its finances.

For this reason, Social Security is invested in recouping all of the money it can due to erroneous payments.

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That’s how 65-year-old Ruth Podmanik from Sheffield Lake, Ohio found herself in a messy situation. The recent retiree revealed that her husband, Ed, passed away from leukemia back in 2012.

She’d recently been approved to start receiving her late husband’s Social Security benefits. But now, as News 5 Cleveland reports, they’re going after Ruth for nearly $70,000 the agency claims was paid out mistakenly to Ed.

“I feel scared,” Ruth told News 5. “Am I going to have to sell my house?”

Social Security policies are leaving older adults confused

The Center on Budget and Policy Priorities says that Social Security has a payment accuracy rate of over 99%, and that only 0.3% of its payments are improper. Still, between 2015 and 2022, Social Security made roughly $72 billion in erroneous payments, according to its Office of the Inspector General.

Meanwhile, Podmanik says her husband received Social Security payments during a five-month period of being out of work due to his illness. But when Ed went back to work, Social Security kept sending him money.

She told News 5 that Ed called the Social Security Administration (SSA) "constantly" to ask why he was continuing to get benefits. They told him he was entitled to the money because of his leukemia.

Now, Social Security is coming after Ruth for an overpayment to Ed of over $69,000.

“Not once did they say anything to me about, ‘Hey, you know you still got an overpayment here?’” Podmanik told News 5.

Despite reaching out to the SSA to resolve the matter, she isn’t getting answers. And she’s not the only one.

"Every year, we’ve seen an increase in the volume of people calling and looking for help," Natasha Pietrocola, director of the Division of Senior and Adult Services in Cuyahoga County, told News 5.

She says many older Americans are confused about Social Security overpayments and are worried about the consequences.

Social Security can reclaim its money by withholding benefits from seniors. But, as Pietrocola told News 5, "that’s going to have devastating effects for them to be able to actually afford to live."

Part of the problem stems from a recent SSA change. In March, the agency said it’s looking to recoup overpayments at a rate of 100%. This means that the SSA can withhold 100% of a person’s monthly benefits to recover money it’s owed.

The change amends a previous rule where the SSA could only withhold 10% of benefits to recoup overpaid funds. The change is expected to help Social Security recover around $7 billion over the next 10 years.

Social Security later amended its message to limit clawbacks to 50% of benefits.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

How to cope with changes to your Social Security checks

If you’re someone who’s collecting Social Security, you may be reliant on that money to cover your expenses.

So, if you get a notice letting you know that your monthly checks are being reduced due to an overpayment, it could have a huge impact on your ability to pay your bills.

If that happens, your first move should be to contact the SSA and ask for an explanation if there’s something about the notice that isn’t clear or you don’t agree with it. If you can’t get an answer by phone, you may want to make an appointment at your local Social Security office to speak to a representative in person.

It’s also possible to appeal a decision made by the SSA. And if that doesn’t help, you can weigh your options for low-cost legal aid.

It’s also a good idea to create a my Social Security account and monitor it regularly. And be sure to reach out to the SSA if you start receiving smaller benefits or your benefits go missing.

Meanwhile, Podmanik is still trying to get answers from Social Security.

"There’s days when I sit here and I cry," she said. "It wasn’t my mistake. It wasn’t my husband’s mistake for the overpayment. It was their mistake."

News 5 reached out to the SSA to look into her situation. But for Cuyahoga County residents, further resources for similar situations may be available through the Division of Senior and Adult Services.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Being a stay-at-home parent can often be a thankless job.

From the moment you get up in the morning to the moment you go to bed, you’re either chasing after a child, preparing meals or doing some sort of household task — many of which involve scrubbing food particles off of a surface or item of clothing.

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And the worst part? At the end of the week, there’s no paycheck to look forward to.

That’s what inspired Amber Aubrey, a mom of two, to start charging her husband for the unpaid labor she performs around the house. She documented her decision in a hotly debated TikTok video that has since racked up over 4.2 million views.

"Ultimately, it does kind of make me the breadwinner in my household," Aubrey said in the video.

Why this stay-at-home mom wants a paycheck

The work stay-at-home parents do has real value — and researchers have actually put a price tag on it.

Beike Biotechnology found that stay-at-home parents of two children do about 200 combined hours of unpaid labor each month. The estimated cost? Between $4,000 and $5,200.

For Aubrey, charging her spouse for her stay-at-home duties boils down to feeling like she deserves financial recognition for the work she contributes. That’s why she bills her husband $2,700 a week for the work she does.

"If he wants to save money, he can help me do any of these tasks," she said.

Here’s a breakdown of Aubrey’s workload and the amount she charges:

• $20 per load of dishes (two to three times daily, five days a week)
• $140 for weekly laundry
• $120 for weekly bathroom cleaning
• $100 per floor cleaning (two to three times daily, five days a week)
• $800 weekly homeschool instruction for two kids
• $150 for weekly pickups and drop-offs
• $75 per weekly grocery run
• $50 for five weekly lunches and dinners
• $200 for weekly breastfeeding
• $50 weekly for sweeping

Many TikTok viewers were quick to applaud Aubrey for her bold stance.

"Know your worth, then add tax," wrote user K Briggs.

"I 100% support this," added another user named Niklovin. User Sharna Louise chimed in: "This is the best video I’ve seen on the internet; ever!"

Aubrey’s video even resonated with some male viewers. A TikTok user named gesseppiimuhseppe said, "Listen, as a guy, I’m here for this. I think most [of] these men need to be aware [of] how much their wives do."

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How couples can address “invisible labor”

Invisible labor is something stay-at-home parents take on regularly — and issues can arise when that work goes unacknowledged.

It’s not just the physical tasks that matter. There’s also the mental load — the planning, scheduling and decision-making that comes with managing a household and raising children.

Of course, not every household follows the traditional gender roles. But data from the University of Wisconsin-Madison finds that women still spend twice as many hours doing physical housework as their male partners.

Weight of the world

It doesn’t stop there. Allison Daminger, an assistant professor of sociology, found in her research that in 80% of opposite-sex couples, women shoulder most of the cognitive labor — things like managing family calendars, planning meals and checking on homework.

According to Bloomberg, economists at the Levy Economics Institute examined data in 2021 and found that for every $100 households spend on commodities, there’s about $65 worth of unpaid work involved — often done by the stay-at-home parent.

That same data set found that nearly 80% of all unpaid household work is done by women, with a total estimated value of $3.6 trillion annually.

That’s why couples need to have open discussions about how to financially support and recognize the stay-at-home role. That doesn’t have to mean every household needs to itemize tasks like Aubrey does.

But working partners should start by acknowledging the value their stay-at-home counterparts bring to the table. There are practical ways to make things more equitable.

For example, the working partner could contribute part to a spousal IRA to help the non-working partner save for retirement.

They should also consider the opportunity cost of a partner stepping away from their career. Resume gaps can add challenges when trying to re-enter the workforce and often lead to lower pay.

For couples with one stay-at-home parent, open communication is key — and so is gratitude. Even if a weekly paycheck isn’t in the cards, a regular and sincere thank you can really go a long way.

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Think Social Security is a sure thing? Between 2015 and 2022, the government mistakenly shelled out nearly $72 billion, and now it wants that money back, even if the error wasn’t your fault.

To that end, the Social Security Administration (SSA) is going after overpayments more aggressively. In March, it announced plans to withhold 100% of benefits, if needed, to recoup overpaid funds. Previously, that withholding rate had been capped at 10%.

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The SSA later issued an emergency message in late April to give interim guidance on the new rule. In that message, it said the withholding rate should be limited to 50%.

The higher rate applies to old age, survivors and disability insurance benefits. For Supplemental Security Income overpayments, the withholding rate remains 10%. Still, this change could throw many Social Security recipients for a major loop.

How the new rules hurt the most vulnerable

The SSA won’t withhold benefits without warning. In its emergency message, it explained that recipients are sent a notice requesting repayment of the overpaid benefits. That notice also explains the right to appeal.

Beneficiaries have 90 days to request a lower withholding rate or ask the agency to reconsider. After that window closes, the SSA can withhold 50% of benefits until the overpayment is recovered. These notices began going out on April 25.

Kate Lang, director of federal income security at the advocacy group Justice in Aging, welcomed the shift from 100% withholding, but said she was disappointed the agency didn’t revert to 10%. Lang called the agency’s conduct “chaotic and confusing.”

“It creates more work for SSA — more people calling with questions, more errors being made that need to be corrected, more confusion and uncertainty about what is going on,” Lang said.

According to KFF Health News, the SSA has been actively trying to claw back overpayments from disability benefit recipients for years.

In fiscal year 2022 alone, the SSA recovered $4.7 billion in overpayments. It’s estimated that many of those affected were people on disability benefits who couldn’t afford to pay.

KFF Health News and Cox Media Group reported on individuals harmed by the SSA’s aggressive tactics. One 64-year-old Florida resident was forced to live in a tent after his Social Security benefits were garnished and he could no longer afford rent.

“Social Security overpayments are wreaking havoc in people’s lives,” Jen Burdick, an attorney with Community Legal Services of Philadelphia, told KFF Health News. "They are asking the poorest among us to account for every dollar they get.”

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The impact of withheld Social Security checks

In April, the average monthly benefit was about $2,000 for a retired worker and $1,582 for a disabled worker.

Many people who receive Social Security rely on those benefits for nearly all their income. Among recipients age 65 and older, 12% of men and 15% of women get 90% or more of their income from Social Security, according to the SSA.

When those benefits are suddenly reduced due to overpayment recovery, it can lead to extreme financial hardship.

Some may have to rely on credit cards to cover essentials. But with interest rates still elevated, that could lead to a vicious cycle of debt. Even when rates aren’t high, relying on credit is risky.

For others, a loss of even part of their Social Security check could mean missing rent and facing eviction. Homeowners could risk foreclosure. And some might not be able to afford basics like utilities, food or medication.

How to avoid future financial shocks

Having your Social Security benefits reduced because of an overpayment on the program’s part can be a devastating financial blow. Even if you haven’t received an overpayment notice yet, that doesn’t mean one isn’t coming.

Right now, the SSA is limiting its withholding rate to 50%, but that could change. If you depend heavily on Social Security, it’s wise to take steps to protect yourself.

One option is to try building an emergency fund. That’s not easy if you’re already retired, but if you’re physically able, consider a part-time job to boost your income.

According to Pew Research, 19% of Americans ages 65 and over are working. If a set schedule doesn’t appeal to you, the gig economy may offer more flexible options. You can also look for ways to cut back on spending and save more. If you already live on a tight budget, this won’t be easy, but temporary sacrifices — like moving in with a grown child to avoid rent — could help.

It’s also important to maintain good records of everything Social Security pays you. Keep all SSA documents in a safe place, and consider scanning them for digital backups.

If you get an overpayment notice you believe is incorrect, don’t hesitate to appeal it. The SSA could have made a mistake.

Before you panic, try calling the agency to speak with someone, or make an appointment at your local office to sort things out in person.

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Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

It’s not always easy to leave a relationship in the past, especially when there’s a child involved. But sometimes, those ties to an old flame can burn your finances in the here and now.

That’s the situation Beth from Philadelphia is in. She called into The Ramsey Show because her husband rents out his New Jersey house to his ex-girlfriend. The reason for this tie is that they have a daughter together, and his goal with that arrangement has been to maintain a stable environment for the child.

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The problem is that Beth’s husband’s ex is consistently late with payments, which is negatively impacting his credit score. And since Beth and her husband now want to buy their own house together, that’s a problem.

A tough situation

Beth’s husband bought his New Jersey house in 2016-2017. The house is in his name, Beth told show hosts John Delony and Jade Warshaw.

He’s been renting the home to his ex for five years. But he hasn’t been collecting rent payments from his former partner. Rather, he left her to pay the mortgage herself.

The reason for the arrangement, as Beth explained, was that the breakup wasn’t amicable. Beth’s husband wanted to interact with his ex as little as possible, but still wanted to be responsible for their shared child. The mortgage payments are now up to date, but in the past five years, the ex has been late on 20 payments.

Beth’s husband is “on top of his finances with the exception of this situation". The late payments have lowered his credit score to the low 700s.

"That’s not as bad as I would expect," Warshaw said.

To qualify for a conventional mortgage, Beth’s husband would need a minimum credit score of 620, according to Experian. But the higher the score, the more favorable mortgage terms they’ll qualify for. Warshaw and Delony recommended that Beth’s husband try to sell the house as soon as possible and move on, especially since his ex has married someone else. They suggested giving the ex six months’ notice to find a new place, which is more than reasonable.

"I wouldn’t make a big drama about it,” Warshaw said. “I wouldn’t go talk about the past missed payments. I would just say, ‘Hey, it’s been five years, I think we’ve all moved on.’"

Beth expressed some concern about the impact on her husband’s daughter.

"The last thing he wants to do is throw them out," she said.

But, Warshaw and Delony insisted that giving six months’ notice to vacate isn’t leaving the ex and the daughter in the lurch. They also suggested that Beth’s husband could try to sell them the house at a reasonable price. Otherwise, the ex should be given a six-month notice, with the stipulation that if they pay their rent or if they damage the house, then that timeline will be accelerated. In that case, they’ll have to leave in 30 days.

If that threatens his daughter’s financial well-being, Delony suggested Beth’s husband could negotiate a new custody agreement where he sees her every other weekend. But, they need to sever the financial connections for Beth’s husband’s sake.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

The cost of mixing personal and financial choices

It’s not unusual to end up in a situation like Beth’s husband, where your desire to help someone you have a personal relationship with compromises your finances. And it doesn’t have to be an ex. It could be a sibling or a grown child or another close relation.

Of course, the problem with helping someone you care about, you might end up with financial problems of your own. Those could include diminished savings and a negative effect on your credit score, making it harder for you to buy a home of your own.

For example, imagine co-signing for a loan to help a sibling out, but they fall behind on payments. That could leave you on the hook for those payments instead.

That’s why it’s important to be careful. In the situation above, what Beth’s husband could’ve done was to enter into a formal lease agreement with his ex, including a payment schedule and penalties for late payments.

Between now and when Beth’s husband sells the house, Warshaw and Delony suggested that a formal arrangement be put in place that outlines the consequences of not paying on time.

Had there been financial consequences to missed payments, the ex would’ve been more careful, sparing Beth’s husband whatever credit score damage he sustained.

Any financial arrangement you have with a close relative should be made in writing so that each party understands their rights and obligations. Also, be careful with whom you choose to help. In this situation, Beth’s husband has a responsibility to help his ex because they share a child.

It’s not easy to say no to a former partner or family member. But, for the sake of the relationship, as well as your finances, it’s important to be firm and honest when it happens.

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Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Real estate scams are all too common and older people tend to be easy targets. When Jose Luis Fernandez of Sunny Isles Beach, Florida invested money with Ybis Del Carmen of Realty Golden Group, he wasn’t worried. After all, he had known her since 2012.

But authorities say Del Carmen wound up stealing more than $1.6 million from Fernandez through an elaborate real estate fraud scheme. And now, Fernandez’s life will never be the same.

"I lost everything," he told WPLG Local 10 News, the pain evident in his voice.

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A devastating financial loss

Fernandez says he trusted Del Carmen to invest his money in a six foreclosure properties valued at around $842,000, reports WPLG Local 10 News. He gave her full access to his business bank account at Truist Bank so she could facilitate those transactions on his behalf.

Del Carmen gave Fernandez documentation in support of the various sales, but it was all fake, say police. She never bought any of the properties she said she did.

Fernandez became suspicious when he wanted his money and Del Carmen kept making excuses about why it wasn’t available. Now, he calls his situation "very complicated."

Members of the Sunny Isles Beach Police Department arrested Del Carmen, who faces charges of organized fraud and grand theft, says Local 10 News. And there’s concern that she may have defrauded investors other than Fernandez. People with knowledge of her real estate fraud, or related fraud, are encouraged to report it anonymously at 305-471-8477.

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Real estate scams are an ongoing problem

In 2024, there were 9,359 real estate fraud complaints filed, according to the FBI’s Internet Crime Report. All told, consumers lost more than $173,000 million to real estate fraud.

Sadly, it was older people who were most likely to lose money to real estate scams.

In 2024, people ages 50 to 59 lost $22,466,504 to real estate fraud, compared to $6,623,054 among people in their 30s and $9,331,733 among people in their 40s. But people ages 60 and over reported 1,765 real estate crimes last year totaling an astounding $76,324,236 in losses.

Because so many older people live or retire in Florida, it’s not surprising that the state ranks among those with the most fraud complaints. In 2024, Florida came in third in that category, following only California and Texas. It was also third in terms of total financial losses.

A big reason older people may be more likely to fall victim to real estate fraud is that they have more assets than their younger counterparts. And as the FBI states about scams in general, "Seniors are often targeted because they tend to be trusting and polite. They also usually have financial savings, own a home and have good credit — all of which make them attractive to scammers."

In the context of real estate, the problem is that it’s not difficult to create documents that look legitimate. Scammers can download public records and duplicate or manipulate them in a way that seems official.

Plus, it’s just not that difficult to pull off a real estate scam in general, even when the victim is someone younger and relatively tech-savvy. All a criminal needs to do is search for listings, pretend to be the agent in charge, forge some sale documents and take people’s money.

It’s easy enough to look at public records to find a given property’s rightful owner’s name. From there, anyone can draft a contract, get a fake notary stamp and take other such actions that lead an innocent person to believe they’re buying real estate when they aren’t.

How to spot a real estate scam

You don’t necessarily have to be older to fall victim to a real estate scam. But if you’re vigilant, you can potentially avoid one.

First, be wary of properties that seem like too much of a bargain. If you do some research and find that the average home price in your area for a three-bedroom is $400,000, a similarly sized home being sold for $200,000 should raise a red flag.

Also, be careful with off-market properties. If a given home isn’t listed on MLS, you may want to stay away.

It’s also important to verify the credentials of anyone who tries to sell you a home. Before you agree to a transaction, get references for the real estate agent involved and check up on their license to make sure it’s valid.

Unfortunately, it’s possible for someone to have a valid license and still engage in fraud, but it’s an extra layer of protection nonetheless, which means the fraudster has more to lose.

Finally, always read your paperwork thoroughly and dig up all of the necessary property details. Inspect the deed and title of the property and review your contract carefully.

Your best bet may be to hire a real estate attorney who is not only able to review your contract, but help with their expertise to do due diligence so you get extra peace of mind.

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Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Helping the homeless is a good thing – but residents of a suburban neighborhood in Las Vegas say there’s been a lack of transparency and due process in a new project.

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In 2023, Nevada lawmakers approved $100 million in funding for Campus for Hope, a $200 million housing project meant to address homelessness in the city. The rest of the money is being provided by a nonprofit backed by the gaming industry.

The proposed site is the 6100 block of West Charleston Boulevard near Jones Boulevard, and two property owners who live about three blocks away have decided to fight it by filing a lawsuit. They say their quality of life, safety, and home values will be affected by the “arbitrary decision” to place the facility in the current location.

As 8 News Now reports, the suit, which was filed in Clark County District Court, alleges that state officials violated Nevada’s Open Meeting Law by greenlighting the project without giving residents proper notice or allowing members of the public to comment on it.

Last month, the governor even signed a bill to speed up construction of the project, says News 3.

"Why are they trying to push this $200 million project so secretly into the neighborhood?” said homeowner Matthew Wambolt, one of the plaintiffs in the case, to 8 News Now.

The plaintiffs argue the project creates an “incurable defect” in the location and seek to halt it until independent studies are conducted on the potential impact of the facility.

A "ceremonial groundbreaking" was recently held, according to 8 News Now, as protesters lined the perimeter. The report says, "Work on the building is starting in September, followed by construction next year."

Why residents aren’t happy

The plan is for Campus for Hope to be a 900-bed, 26-acre transitional housing facility. According to Nevada Current, the project will take up space on the Southern Nevada Adult Mental Health Services campus and there are fears that it will displace existing mental and behavioral health services.

According to the lawsuit, the facility raises safety concerns since it is less than a mile from the Linda Smith and Christopher Smith Family Campus, which serves children and adults with intellectual disabilities, and within a 2-mile radius of over 20 schools serving K-12 students.

“This project will dramatically alter the fundamental character of our neighborhood, transforming our quiet residential area into one marked by significantly increased congestion, activity, and potential crime,” it says. “Ultimately, we believe this project will substantially lower property values and negatively impact the quality of life for local residents."

It also says that the approval process for Campus for Hope was not transparent enough.

“Given the secretive nature of project approvals, the deliberate avoidance of community engagement, and the removal of normal oversight mechanisms … there is a distinct appearance of impropriety in the actions and backroom collaboration of certain state legislators and their large donors within the gaming industry are at play here,” says the lawsuit.

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"I have a question for the governor. The Strip, the casinos are giving hundreds of millions of dollars for this project. You’re going to move these people off the Strip to this area?” said homeowner Gail Johnson to 8 News Now.

Campus for Hope said it has “met all the state and local requirements for the construction of the facility,” in a statement to 8 News Now.

Boyd Katz, who works for a security company in the area, told the news station that it’s not that residents don’t want to help the homeless, they simply believe the project needs proper oversight.

"If we add a facility with that many beds here just like that it’s going to severely affect that area … not just the commercial area, but the residential neighborhood nearby," he said.

Who pays?

Another issue is who’s paying for the project.

“Local municipal authorities claim alternative locations were considered but have repeatedly refused to disclose any addresses, evaluation criteria, or comparative assessments that justify selecting our community as the ideal site," James Root, one of the plaintiffs in the suit, wrote in an affidavit. "Our city alone bears the responsibility for an estimated annual $15 million in operating expenses."

The Nevada Current reports once construction is complete, Campus for Hope will run on taxpayer dollars almost entirely, split between local governments and the state. It will be overseen by a board of directors that does not include state or municipal representatives.

With a total estimated $30 million a year in operational costs, this project could also result in a hefty tax burden on residents.

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South Florida resident Carolyn is 78 years old — and at a time in her life when she should be enjoying life’s comforts, she’s instead living in her car because she can’t afford a home.

“I look at it as a journey. I’ve had many journeys in my life,” she told WSVN 7News in a story published May 13.

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Carolyn isn’t the only older American in that boat. A growing portion of seniors in parts of Florida are grappling with homelessness — and the problem is projected to keep getting worse.

Homelessness is hitting older Floridians

Carolyn had been living in her vehicle for two months at the time, and 7News reports she has only Social Security for income. She doesn’t share her monthly benefit, but the average retired worker today collects about $2,000 a month.

Carolyn has sold many of her possessions, but simply doesn’t have enough money for housing. In the absence of a bed, she sleeps upright in her car instead of lying down.

“I sleep here in this seat, scrunched down. My ankles and legs are swollen from having to sit all the time,” she said. “I buy jug water, it’s cheaper. And I eat one meal a day, for $2.02.”

Thanks to her Medicare plan, Carolyn has free access to a gym where she can shower, per 7News. But she still needs a home.

Cassandra Rhett, the Housing and Social Services Manager for the City of Pompano Beach, is trying to help find her one. Rhett was inspired to help knowing that anyone could end up in a situation like Carolyn’s.

“It could be my aunt, it could be my mother. It just breaks my heart just how humble Carolyn is,” she told 7News with tears in her eyes.

Rhett blamed the situation on skyrocketing rents.

Ron Book, chairman of the Miami-Dade County Homeless Trust, says that homeless seniors are incredibly vulnerable and in need of help.

“We know if you put vulnerable elderly on the street, they’re going to die earlier,” he told 7News. “The face of homelessness has changed. I want people in our community to think about their mothers, and their grandmothers, and their grandfathers being homeless for the first time.”

In 2019, people aged 65 and older made up nearly 8% of the homeless population in Miami-Dade County, according to 7News, citing data from the Homeless Trust. By 2024, that number reached 14%, and it’s projected to climb to 22% by 2030.

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Meanwhile, Carolyn’s car recently started to leak following a period of rain. Rhett says the city has put Carolyn up in a hotel for now — while she works to find the senior permanent housing.

Carolyn hopes sharing her story sheds light on the problem at hand.

“It can happen to anyone. Don’t think it can’t,” she warned.

Homelessness among seniors is a major problem

Americans aged 50 and over are the fastest growing group of people who are going homeless in the country, according to the U.S. Interagency Council on Homelessness.

The National Alliance to End Homelessness, meanwhile, reports that in 2023, roughly 138,000 Americans aged 55 and older experienced homelessness on a given night, representing 20% of all homeless individuals.

The organization also noted, in 2020, that 5 million Americans aged 65 and over lived below the poverty line, which at the time was $12,760 for a household of one, per HHS data.

There are a few reasons why older Americans may not be able to afford housing. First, many people who reach retirement have only Social Security to live on.

A 2024 AARP survey found that 20% of Americans aged 50 and over had no retirement savings. As noted earlier, the average retired worker Social Security benefit is about $2,000 a month. But Zillow puts the average U.S. rent for a one-bedroom unit at just under $1,600 per month.

In addition to worrying about rent, health costs tend to rise with age. And those with limited incomes sometimes have to choose between paying for medical care and medication versus other bills.

It’s important that seniors at risk of homelessness know how to get access to the support they need. The Department of Housing and Urban Development, for example, has an online tool to help people seek out emergency shelter, as well as food pantries and health clinics. You can also use this list of resources to find homeless assistance programs in your state.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Planning for retirement is something that’s best to do throughout your career, not just when you’re approaching that milestone and have a year or two left to work.

Only half of Americans have tried to calculate how much money they’ll need in retirement, according to a 2024 survey by the Employee Benefits Research Institute (EBRI).

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However, among those workers who did the calculation, 52% were inspired to save more. Even if you feel confident in your ability to cover your retirement expenses, it’s important to be mindful of hidden costs that could impact your retirement finances. Here are three to keep on your radar.

Healthcare expenses not covered by Medicare

Fidelity Investments expects the typical 65-year-old to spend $165,000 on healthcare during retirement. That may sound surprising, but even with Medicare coverage, several expenses could arise.

For one thing, Medicare isn’t entirely free. Most enrollees don’t pay a premium for Part A, which covers hospital care. However, Part B, which covers outpatient care, charges a monthly premium, as do some Part D drug and Medicare Advantage plans. Plus, higher earners risk surcharges on their Medicare premiums.

Premiums aside, there are a number of expenses that original Medicare (Parts A and B plus a Part D drug plan) does not cover, which retirees commonly need. These include dental care, eye exams, prescription glasses and hearing aids.

You’ll also face copays and coinsurance under Medicare that you must pay out of pocket. If enrolled in original Medicare, you can buy supplemental insurance known as Medigap to help offset those costs. But then you’re looking at premiums for Medigap, too.

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Long-term care

It’s a big misconception that Medicare will pay for you to live in a nursing home or cover the cost of a home health aide. Medicare’s scope of coverage is typically limited to medical issues only. So while Medicare might pay for rehab or physical therapy because you broke a hip, it won’t pay for a home health aide because you’re getting older and need help dressing yourself and using your kitchen.

Meanwhile, the cost of long-term care can be astronomical. According to Genworth, here are the annual median costs for certain long-term care services in the U.S. for 2024:

Home health aide: $77,792

Assisted living: $70,800

Shared nursing home room: $111,325

Private nursing home room: $127,750

One option for defraying these costs is to buy long-term care insurance. But that might bust your budget, too. The American Association for Long-Term Care Insurance says an average $165,000 policy with no inflation protection purchased at age 55 by a single male costs $950 a year. For a 55-year-old female, that policy costs an average of $1,500. And for a 55-year-old opposite-gendered couple, the average price is $2,080 combined.

Of course, the actual cost of long-term care will depend on factors such as where you’re located, your age at the time of your application and the state of your health. But all told, you might spend a lot of money to put that coverage in place.

Inflation

In recent years, retirees and working Americans alike have experienced their share of rampant inflation. But even when inflation isn’t as aggressive, it’s still a hidden cost that can upend your retirement budget.

Social Security benefits are, thankfully, designed to keep up with inflation. They’re eligible for an annual cost-of-living adjustment tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers, a subset of the more widely known Consumer Price Index.

But ensuring that your savings can keep up with inflation is also critical. One way to do this is to avoid eliminating equities from your portfolio in retirement. You need some growth in your portfolio to make up for rising living costs. You can work with a financial advisor to develop an appropriate asset mix based on your income needs and risk appetite.

A financial advisor can also help set you up with assets in your portfolio that generate income. These could include dividend stocks, bonds and real estate investment trusts (REITs).

It could also be a good idea to delay your Social Security claim past your full retirement age, which is 67 for anyone born in 1960 or later. For each year you do, until age 70, your benefits rise 8%. And that boost is guaranteed for life.

Having a larger monthly benefit gives you more leeway to tackle not only inflation, but also surprise medical and health-related expenses. So it’s a move worth considering if you don’t need to sign up for Social Security sooner.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

It’s natural for some people to want to be as charitable as they can afford. But at what point do we stop helping ourselves and invest in others?

Daniel from Oklahoma wrote to The Ramsey Show to explain a dilemma he was having. He claimed his church told its members not to focus on investing in retirement but on investments toward the church instead, and was wondering if it was a good idea.

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"If they said this, this is not biblical," co-host Ken Coleman responded in a clip posted April 13.

"Change churches if someone’s doing this," Dave Ramsey added.

Both of them, however, emphasized the "if" in their responses. Here’s what Ramsey, an evangelical Christian himself, had to say about tithing to the church.

When the concept of charity goes too far

Ramsey stated he supports tithing to the church — the practice of donating one-tenth of a person’s income to a religious organization.

However, he also says you can’t tithe more than 10%, because the word itself means "tenth."

"Anything above that is called an ‘offering’ to support … the community work that the church is doing," he said. "There’s nothing wrong with that."

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Ramsey also pointed out that it’s perfectly fine to save for our own needs, including retirement.

"Wise people save money," he insisted was a biblical lesson.

Ramsey cautioned that Daniel may have misinterpreted his church’s message. However, if his description was accurate, Ramsey says it sounded like a money grab.

How to balance savings and charity

There’s a lot of pressure on Americans today to save for retirement. Ramsey Solutions suggests that workers aim to save and invest 15% of their gross income for their golden years.

But it’s hard to do that and donate 10% of your income while also covering your needs at a time when living costs are so high.

That’s why it’s important to strike a balance. After all, faith and finance don’t have to be at odds. Ensuring your needs are taken care of before being charitable with your money doesn’t make you selfish — it makes you practical. It can be a good idea to set up a budget that prioritizes your needs but also leaves room for charitable giving.

Often, you can give to charity without hurting yourself financially or causing undue stress. If you’re compromising your financial security or well-being, then you may need to rethink your approach to charitable giving and scale back.

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Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.