Special Government Help for Your Retirement

When most people think about government services for retirees, they think about Social Security and Medicare. This isn’t surprising since nine out of 10 retirees receive Social Security benefits, and virtually all retired Americans age 65 or older are enrolled in Medicare.

Other government resources are available for older citizens, but relatively few use them for a number of reasons, including a lack of awareness.

There are programs that can help with housing issues, job training, food assistance, healthcare, tax preparation, and a host of other challenges.

Income Programs

Your retirement income may well arrive in your bank account from more than one source. The primary income source for most retirees is Social Security. a pension, or both.

Other sources may include investment income, full or part-time employment, and government programs designed to help you supplement your retirement income.

Here are the most common government programs that affect your retirement income.

Social Security

Social Security is an earned benefit, meaning you pay into it throughout your working years and receive a monthly payment after you retire for the rest of your life. Your lifetime earnings effect the amount you receive, as does your age when you retire. The longer you wait to retire, up to age 70, the more you receive when you claim your benefits.

When relevant, your spouse or widow, starting at age 62, can collect based on their earnings or on yours. That can make a big difference if you were the family’s main wage earner.

The same applies to a divorced spouse if the marriage lasted at least ten years. A widow or widower only has to be 60 (or 50 if the person is disabled) to collect.

Supplemental Security Income (SSI)

This is one of the best-known government programs that provide additional financial support to low-income citizens who are blind, disabled, or are age 65 or older.

If you qualify for SSI, you may receive help from both the federal government and your state. Unlike Social Security, you must continue to qualify to receive benefits. Your income and living arrangements determine how much you will receive.

SSA Benefit Eligibility Screening Tool (BEST)

The Social Security Administration’s Benefit Eligibility Screening Tool (BEST) provides an easy way to find out if you qualify for any additional programs run by the SSA.

In addition to Social Security and Medicare, programs covered include SSI, disability, family, spousal/widow(er), and special benefits for veterans.

BEST lets you make sure you don’t miss any benefits for which you qualify. The screening can all be done online.

Senior Community Service Employment Program (SCSEP)

This Department of Labor (DOL) program helps lower-income seniors acquire new skills and work experience through paid on-the-job training at public and non-profit centers like schools, hospitals, daycare centers, and senior centers.

The goal is for participants to eventually move on to unsubsidized jobs.

Federal Employee Retirement System (FERS)

The Federal Employees Retirement System (FERS) is for anyone who worked for the federal government. There are three sources of benefits in FERS:

These three parts provide you with a regular monthly annuity payment in retirement.

Retirement Savings Plans

Retirement savings plans such as 401(k)s, individual retirement accounts (IRAs), 403(b)s, and 457(b)s are not government programs per se, but the big tax break that is one of their main benefits comes straight from the Internal Revenue Service (IRS).

IRS rules determine the amount of money you can set aside for retirement every year, when you can withdraw it, when you must withdraw it, and what the tax consequences are.

The IRS Choosing a Retirement Plan website is a good place to start learning more about available retirement savings plans, how they work, and how to avoid running afoul of the related tax regulations.

COVID-19’s Effect on Retirement Plan Withdrawals

The COVID-19 pandemic exacerbated the shortcomings in the Social Security system’s customer service system by closing in-person locations and reducing staff numbers.

The pandemic also led to new schemes to defraud senior citizens, causing the Social Security Inspector General to issue a warning about the latest scams.

Throughout the pandemic, provisions of the CARES Act expanded distribution options, eased rollover rules, and provided favorable tax treatment for withdrawals related to COVID-19 from retirement plans.

All of these provisions have since expired, but the Social Security Administration still bears funding stress and customer service shortcomings which may create headaches for recipients.

Tax Assistance Programs

As a retiree, the taxes you pay will depend on your overall income and the degree to which you take advantage of available deductions. Government programs are available to help you prepare your taxes and, in some cases, to offer additional assistance if you qualify.

More information is available in IRS Publication 554: Tax Guide for Seniors.

Tax Credit for Older People and Those With Disabilities

The IRS offers a tax credit if you are older or have disabilities, as outlined and explained in IRS Publication 524.

The basic qualifications include being 65 or older at the end of the tax year or being retired with a permanent disability and having taxable disability income. There are also income limits.

Tax Counseling for the Elderly (TCE)

The Tax Counseling for the Elderly (TCE) program offers free help with your taxes to anyone age 60 or older.

While the program is sponsored and funded by the IRS, it is conducted by qualified organizations that are granted funding by the IRS to run the TCE program in local areas.

Volunteer Income Tax Assistance (VITA)

The IRS Volunteer Income Tax Assistance (VITA) program offers free basic tax return preparation to qualified individuals of all ages. The general qualifications include having an income of $60,000 or less, having a disability, or having limited English skills.

As with TCE, VITA is funded by the IRS but run by local organizations.

IRS Publication 3676-B lists services provided by both TCE and VITA and includes a handy list of the items and documents you need to bring for your session. The IRS also has a Locator Tool you can use to find TCE or VITA programs near you.

Housing Programs

Some people choose to retire in place, keeping the same residence they had while working. Others choose to relocate, downsize, or look for a senior-centric neighborhood. Eventually, they may need to consider assisted living, nursing care, or memory care.

In any case, there are government programs that can help with the transition.

Housing Choice Vouchers

The U.S. Department of Housing and Urban Development (HUD) sponsors the Housing Choice Voucher program, formerly known as Section 8 Housing. This program offers housing assistance if you are at least 62 years of age and qualify due to having a low income.

For Native Americans, there are specific sub-programs of the Housing Choice Voucher program which provide tribes with grants to support specialized affordable housing activities.

There is a long waiting list in many areas, so you may have to make other living arrangements until a spot opens up. You apply for the program at your local Public Housing Agency (PHA).

Private Rent Subsidies

HUD also makes it possible for owners of private rental units, including apartments and houses, to offer subsidized housing to low-income seniors.

With this program, you find your own residence using the HUD Resource Locator and apply at the rental office. The Resource Locator allows you to search for rental housing for seniors or for housing that is available to all low-income clients.

USDA Housing Repair Program

This United States Department of Agriculture (USDA) program, also known as the Section 504 Home Repair program, issues grants and low-interest loans that can be used to repair or improve your home.

You must be at least 62 years old and meet the program’s low-income requirements. Grants do not have to be paid back, but loans do.

Low Income Home Energy Assistance Program (LIHEAP)

The U.S. Department of Health and Human Services (HHS) provides cash grants to help pay heating and cooling bills through the LIHEAP program. Grants can also be used to install insulation, floors, and ducts, or to repair or replace inefficient heating or cooling units.

Grants for utility bills may be paid directly to your utility company.

This program has no age requirement and is based strictly on income, but older people and those with disabilities are part of the target population for LIHEAP.

The HHS LIHEAP Resource Guide provides information about how and where to apply for assistance.

Home Equity Conversion Mortgages (HECMs) for Older Homeowners

Home Equity Conversion Mortgage (HECM) is the name of the Federal Housing Administration (FHA) version of a reverse mortgage. It’s the only reverse mortgage insured by the federal government and is only available through an FHA-approved lender.

A reverse mortgage allows a homeowner to withdraw a portion of the home’s equity in the form of a loan that must be paid back only when you leave the home. If you die, your heirs will be responsible for repaying the amount withdrawn.

The amount you receive depends on the amount of equity, the age of the youngest borrower, current interest rates, the lesser of the appraised value or HECM FHA mortgage limit, or the sales price of the home.

An explanation of the program can be found on the HUD website.

Housing Counseling

HUD sponsors housing counseling agencies all over the country that provide advice on buying or renting a home and dealing with defaults, foreclosures, and credit problems. Agencies are listed by state on the HUD Office of Housing Counseling website.

If you want to zero in on a specialist, you can look specifically for a reverse mortgage counselor or a foreclosure avoidance counselor, depending on your needs. If you prefer, you can also call HUD’s interactive voice system at (800) 569-4287.

As with the LIHEAP program, the housing counseling program isn’t just for older people. It also may not be free, although fees are based on what you can afford and may not apply depending on your income. Any fee is disclosed upfront.

Health Care Programs

As important as Medicare is to most American seniors, it’s the tip of the iceberg when it comes to government health care programs.

Medicare

Medicare is a long-running health insurance program provided by the federal government. It has four parts: Part A (hospital), Part B (medical), and Part D (drugs). Part C is commonly known as Medicare Advantage.

There is no cost for Part A for most people. Part B charges a monthly premium that is adjusted annually, with about 7% of plan participants charged more than the basic premium based on their income.

The basic monthly cost of Part B is $174.70 for 2024, up from $164.90 in 2023. The cost of Part D varies with the plan you choose. The monthly premium for standard Medicare Part D coverage is $55.50 in 2024, down from $56.49 in 2023.

Medicare Advantage is a separate category of Medicare-approved plans from private insurers that typically provide coverage comparable to Medicare Parts A, B, and D. Medicare Advantage participants must still pay their Medicare Part B premiums, though some plans will offset some or all of that cost.

The average monthly premium for a Medicare Advantage plan (excluding the cost of Part B premiums) is $18.50 in 2024, up from $17.86 in 2023.

Medicare is available when you turn 65. Full information can be found on the Medicare.gov website.

Medicare Savings Programs

Medicare Savings Programs are run by each state. Depending on your financial circumstances, a savings program may pay your Part A and Part B Medicare premiums, deductibles, coinsurance, and copayments.

There are four types of Medicare Savings Programs—each with its own income and resource limits and each offering its own benefits. You may also qualify for Extra Help, which pays for Part D coverage.

You apply for this coverage through your state Medicaid Program office.

Medicaid

If your income and resources are limited, you may qualify for Medicaid; a program paid for by both federal and state governments.

Medicaid pays for visits to health care providers, hospital services, x-rays, transportation, drugs, and certain home health services, as well as nursing home care. Benefits vary from state to state. You apply through your local Medicaid office just like you do with the Medicare Savings Program.

VA Health Care Programs

Military veterans have access to the VA health care system. Depending on your age and military service, you may qualify for hospital coverage, home health services, hearing aids, dental benefits, mental health programs, and more.

The VA does not require you to enroll in Medicare Part D since pharmacy services are included with VA coverage.

You will need to provide proof of service (usually by producing a copy of your DD214). To qualify, you must complete the application on the Veterans Administration website, by phone, by mail, or in person.

COVID-19 has led to a number of changes in government health care programs, including coverage of various coronavirus-related tests and treatments by Medicare. This includes the relaxation of various standards and requirements for Medicaid and other programs. In addition, the CARES Act provides additional coronavirus-related funding for government health care programs mentioned here.

Nutrition Programs

Government programs provide support for proper nutrition for low-income people nationwide. Many of these programs are run by the states with federal support.

Supplemental Nutrition Assistance Program (SNAP)

SNAP, formerly known as food stamps, provides eligible low-income people with a stipend to spend on food. The amount you get depends on your income level and can vary by state since states run the program.

The SNAP program can have different names in different states. To find out if you are eligible, you must apply with your local SNAP office. There are special rules for older people and those with disabilities.

Senior Farmers’ Market Nutrition Program (SFMNP)

This USDA program issues coupon booklets to older people with low incomes that can be used to pay for fresh fruit, vegetables, and other products at local farmers’ markets and outdoor stands.

The coupons are not usable for nonperishable foods and are available on a first-come, first-served basis. Not all farmers’ markets accept them, so it’s wise to check in advance.

The Emergency Food Assistance Program (TEFAP)

TEFAP, also administered by the USDA, distributes food to states to be handed out at food banks and soup kitchens, where the food is provided to eligible low-income older people.

States set the eligibility criteria, including income standards. The State Distributing Agency in your state can provide details about availability in your area.

Child and Adult Care Food Program (CACFP)

Another USDA food program, CACFP, provides nutritious meals and snacks to eligible adults enrolled in adult daycare centers.

Adults at least 60 years old or living with a disability may be eligible for this program. To locate an adult daycare center that offers this program, contact your state agency.

Commodity Supplemental Food Program (CSFP)

The USDA Commodity Supplemental Food Program (CSFP) differs from the Child and Adult Care Food Program in that it provides food (commodities) rather than prepared meals.

To be eligible, you must be at least 60 years old and qualify as low-income, according to guidelines in the state where you live. Program guidelines and application information are available on the CSFP website.

Where to Look for Help

One of the reasons older people don’t take advantage of government assistance is that they don’t know about them. Luckily, there are now resources to help you find government assistance programs for which you qualify.

BenefitsCheckUp from the National Council On Aging (NCOA) is one such tool. Use this service to find out which of more than 2,500 public and private benefits programs may apply to you. There are programs to help with the costs of prescription drugs, food, utility bills, health care, and much more.

The Eldercare Locator service, sponsored by the U.S. Administration on Aging, helps you locate agencies near where you live that provide a variety of services to older Americans. Services include meals, transportation, home-based care, and other support services. If you prefer, you can call Eldercare Locator at 1-800-677-1116.

The Bottom Line

Many government programs aim to help people adjust to retirement and cope with its challenges. They can help with income, tax assistance, housing, healthcare, and nutrition.

To find out if you qualify for these programs, take a look at the requirements, which often have income and age cut-offs. You may be surprised at the benefits you’re eligible to receive.