Whether you can work depends on your current health and the type of job you do. You may need to make some changes such as cutting back hours or doing less demanding tasks to adapt your work situation to your health. Keep in mind that the American with Disabilities Act offers some protection to people who have Alzheimer’s disease. Companies with fifteen or more employees must make “reasonable” accommodations for job applicants with physical or mental disabilities. You can also talk to your employer about benefits such as paid sick leave or other short-term disability benefits.
Retirement Benefits
Money you’ve saved through your individual retirement accounts, annuities, and your pension plan can provide income, even if you haven’t reached retirement age. You can even withdraw money from your IRA or employee-funded retirement plan before age 59/2 without paying the ten percent early withdrawal penalty. But you will still have to pay income tax on your withdrawals. So if you’re planning to tap into your IRA or employee-funded retirement plan, try to wait until after you leave your job, when you’ll be in a lower income-tax bracket.
Personal Savings, Investments, and Personal Property
These include stocks, bonds, mutual funds, savings accounts, certificates of deposit, real estate, and personal property such as artwork, jewelry or collectibles. Before selling assets, consult a financial advisor or tax specialist about tax ramifications.
Your Home
Tapping into the equity you’ve built up in your home can also provide a source of income. You may consider selling your home and investing the money.
Reverse Mortgages
If you own a single-family home and own it outright, you may consider a reverse mortgage, a type of home equity loan for someone over the age of 62. A reverse mortgage allows you to convert some of the home equity into cash without requiring you to sell your home. As the homeowner, you use your home as collateral against the loan, which is paid to you in a lump sum or periodic payments. The amount you can borrow is based upon your age, your current home equity and the lender’s interest rate. But the amount you can borrow is always less than the value of the home.
The loan is not paid back until you die, the home is sold, or you permanently move away. The money you receive is not taxable, and for people who are in the advanced stages of Alzheimer’s, it may finance the cost of long-term nursing home care.
Government Assistance
For people who meet certain eligibility requirements, there may be monetary assistance from the government. These programs include:
Social Security Disability Income
People under age 65 may qualify for Social Security Disability Income (SSDI). In order to qualify, you must prove that you can no longer work or that the condition will last at least a year or that it will result in death. Your family members may also be eligible to receive SSDI benefits.
Don’t wait to file for SSDI benefits. Although benefits aren’t paid until the sixth full month of disability, the Social Security Administration is often slow in deciding whether to approve a claim. Often, an applicant is initially rejected, in which case you’ll need to file an appeal. After receiving SSDI benefits for at least 24 months, you will qualify for Medicare.
Supplemental Security Income
People who are aged 65 or older, disabled or blind, and who have very limited income and assets may be eligible to receive Supplemental Security Income (SSI). In order to receive SSI, you must meet the SSAs definition of disability. Again, don’t wait to apply for benefits. Payments start as soon as you’re approved.
For more information on both SSDI and SSI, contact the Social Security Administration at 1-800-772-1213 or visit the Web site at www.ssa.gov.
Medicaid
For people at very low income and resource levels or those who have exhausted their resources and are in need of long-term care, Medicaid is a possible source of assistance. Most Medicaid dollars go toward nursing home care, but not all nursing homes accept Medicaid. In most states, Medicaid will also pay for hospice care for qualified persons. In any case, Medicaid planning is complex, case specific, and there are variations from state to state as to what is permissible. There is also a tremendous amount of misinformation regarding Medicaid planning.
People who are eligible for SSI are usually eligible for Medicaid. However, those who do not receive SSI can qualify if their income and assets are below a certain amount, which is determined individually by each state. Although Medicaid is a government program designed for poor people, the transfer of assets allows middle class people to access Medicaid, too. But before you start giving away all your assets to loved ones, check with a legal or financial advisor who is well versed on the laws governing the transfer of assets. For instance, anything you give away up to three years before applying for Medicaid is scrutinized by the government. You may also face several legal or tax issues.
Transfer of asset rules are extremely complex, and there are many variations from state-to-state. Some rules protect middle class people by assisting them in preserving assets and still enabling them to obtain the care they need through Medicaid. In New York State the rules governing transfers with respect to nursing home Medicaid or home care Medicaid are very different. There are also special Medicaid rules that protect community spouses as well as disabled children.
For more information on Medicaid, contact your state or county human services or social services department.
Veteran’s Benefits
Veterans of war may qualify for government assistance. But these benefits are changing and the number of veteran’s medical facilities is declining. For more information, contact the Department of Veterans Affairs at 1-800-733-8387.
Other Public Assistance
Some states have state-funding available for long-term care, as well as adult day care and respite care. To find out more, contact your local Alzheimer’s Association, local or county agencies on aging, or the state department or council on aging.
If you think you might be missing out on programs, check out BenefitsCheckUp, a service of the National Council on Aging that is available on the Internet. BenefitsCheckUp screens for federal, state, and some local private and public health benefits for adults aged 55 and up. It contains more than 1,200 different programs from all fifty states and has an average of fifty to seventy programs available per state.
The service also provides descriptions of the programs, contacts for additional information, and materials to help you apply for each program. These programs may help you pay for housing, prescription drugs, health care, utilities, and other essential items or services. To find out if you might qualify, go to www. benefitscheckup.org and fill out the simple questionnaire. The online service is free and confidential.