There’s no doubt about it, the poor state of the economy affects everyone and many seniors are living in poverty and must make major sacrifices to survive. Many of them are living on Social Security and have scraped by until now as the cost of living has increased.

High co-payments cause some seniors to go without needed medication, they struggle to make ends meet and wonder how they’re going to pay the heating bill this winter. There’s tough choices to be made: pay the rent or buy groceries? Sadly, even the last living Titanic survivor is selling her mementos to pay for another month in her nursing home.

Many seniors are re-entering the labor force to survive, but that’s not an option for everyone struggling with rising food, health, energy and housing bills. Some indicators that an elderly person may be making tough financial decisions are: their house is too warm in the summer or too cold in the winter, home repairs not being made, routine outings or vacations are cancelled or there’s sadly not enough food in the house.

Laws and programs vary from state to state, but there are some resources for assistance:

Low Income Home Energy Assistance Program (LIHEAP)

The National Council on Aging has a Benefits Checkup to help make sure people are getting the benefits they’re entitled to.

GovBenefits.gov is another resource with information on over 1,000 benefit and assistance programs.

If your loved one is a veteran, be sure to look into VA benefits, including TriCare

Be sure to look into Meals on Wheels for food assistance.

Eldercare.gov may provide some information on assistance in your area.

Every state has a State Health Insurance Assistance Program, or SHIP that offers one-on-one counseling and assistance to people with Medicare.

Some states have Pharmaceutical Assistance Programs

Shared Housing might be an option to keep a senior’s housing costs down. Check the National Shared Housing Resource Center for more information.

Seniors are vulnerable to economic downturns and those who lived through the Great Depression may even be more reactive and withdraw all their money from the bank or go without needed items.

Even though it can be difficult, it’s important to talk to your aging loved ones about finances in order to address potential problems before they become urgent.

In the largest increase since 1982, the Social Security Administration announced that the Social Security cost of living adjustment (COLA) will be 5.8% in 2009. The adjustment applies to several types of Social Security benefits: retirement, disability, survivors as well as the maximum family benefit.

This higher than usual cost of living adjustment is driven by the increase in food and gas costs over the past few months. The average monthly benefit of $1,153 for all retired workers in 2009, is $74 a month more than in 2008.

It’s also important to consider any increase in Medicare premiums when calculating Social Security benefits since Medicare payment can eat up Social Security benefits increases.

The good news is that the standard Medicare Part B monthly premium will be $96.40 in 2009, the same as the Part B premium for 2008. This is the first year since 2000 that there was no increase in the standard premium over the prior year.

While this increase is more than the originally projected 2.8%, many senior advocates argue that this year’s COLA doesn’t make up for years of inadequate increases and it doesn’t adequately reflect seniors’ expenses.

The decision to downsize and move, whether it is to a smaller residence, a nursing home or assisted living, is a big one and is significant for anyone, especially a senior. There are both physical and emotional aspects of this type of relocation and it’s more than just packing and calling a moving van.

Here are a few tips to help the move go smoothly:

Be tactful - What looks like junk to you may be important to someone else. Be gracious and gentle with suggestions about sorting possessions, ask permission before discarding anything.

Accept gifts and reassure the giver they’ll be cared for - Even if you aren’t in need of the item being offered, accept when possible. A senior may feel some relief knowing that a treasured possession is staying in the family. Be sure to find out about any history the item may have.

Begin the sorting process in room with less sentimental attachments - Sorting through possessions to downsize can be emotional. Beginning the process in a room that holds fewer memories such as the laundry room or storage closet.

Hire help - It can be helpful to have a neutral party involved to help make the sorting process easier. Many companies specialize in moving seniors, consult agencies listed in such directories as National Association of Senior Move Managers.

Take pictures - Photos of the new residence can help you gauge how much room there is for furniture and possessions and photos of how things were arranged in the old residence allow people to help set up the new place as well as provide a keepsake.

Be patient, allow the senior to say goodbye - Moving is hard for anyone. When you’ve lived in the same place for many years it’s harder and the process saying goodbye may take a while.

Allow adequate time for packing - It takes a lot of time to sort and move many years of possessions. Be realistic about how much time people can devote to the task. Consider a storage unit if there are things that the owner can’t bear to part with at the moment. It may be easier to sort some things after the emotions of moving wear off.

Involve the senior - What do they want their new place to look like? Do they want things the same or is a new look in order?

Moving day - If possible, arrange for someone to be on the receiving end of the move to begin setting things up in the new residence so there’s a comfortable place to sit and it won’t look stark and empty.

With a little planning, the transition might not be as stressful as everyone fears.

Assisted Living facilities are for those people who needs help with activities of daily living (ADLs) such as eating, bathing, dressing, laundry and housekeeping, but who wish to live as independently as possible for as long as possible. These facilities are somewhere in between independent living and nursing homes.

As with any important decision, there are several points to consider, including:

Facility location and appearance - Is the facility in a good location? Is the outside attractive and well cared for?

Welcome - Were you and the potential resident greeted promptly and courteously on your visit?

Visiting policy - What is the visiting policy? Are visits welcomed any time? Were you able to talk to the residents about how they like the facility?

Inside - Is the inside of the facility clean, attractive, free of odors, and the appropriate temperature? Are the rooms single or double? Can a resident bring their own furniture?

Needs assessment - What is the process for deciding what type of assistance a resident needs? Are needs reassessed periodically?

Contract terms - What are the terms of the contract? What does the contract include? Are there any additional charges if the resident’s needs change? What is grounds for termination of the contract?

Billing and payment - When appropriate, is the resident permitted to handle their own finances or is it the family’s responsibility? What are acceptable payment methods? When is payment due?

Insurance/personal property - What is covered by the facility’s insurance?

Medications/healthcare - How are medical needs handled? What is the emergency process? Are the staff members trained to handle, administer and document medications? Who coordinates home care visits?

Food services - What is the meal schedule? Is there a dietitian available? Are snacks available? Are special dietary needs accommodated?

Service hours and staffing - What services are provided? Is assistance with activities of daily living and other needs available 24 hours, 7 days a week? What is the staffing level mix (aides, licensed personnel)?

Find out more about assisted living to see if it’s the right choice for your loved one.

In its 2008 Long-Term Care Cost of Care research report, Prudential Financial found that assisted living facility costs have risen 13% over two years. Nursing home costs have risen 7% during this same period, and both are expected to continue to rise.

The report, which was based on data from 552 nursing homes, 533 assisted living facilities, and 528 home health care agencies, found that the average daily cost for an assisted-living facility is over $100, or about $3,241 per month. The average daily cost of a private room in a nursing home is now $217, or $79,205 annually. Costs were found to vary according to geographic location. Alaska, New York and Connecticut had the greatest costs, while Louisiana, Kansas and Missouri had the lowest costs.

Home health care experienced the smallest rate increase, rising just 5 percent over the past two years.

The long-term care cost study also found that while consumers understand the importance of saving financially for their future, there are misperceptions about the cost of long-term care and the insurance benefits related to long-term care. Most health insurance doesn’t pay for long term care, and Medicare usually only pays a fraction of the costs.

What’s most alarming is that the average cost of a two- to three-year nursing home stay could exhaust the assets of most Americans; approximately 5% spend at least five years in a nursing home.

The population is aging rapidly, yet people are living longer than before. Accordingly,  the demand for long term care services and the costs will only increase. How are you preparing yourself and your family for what’s ahead?

The Baby Boomer Generation is making its mark on senior centers.

This newest population of “seniors” doesn’t consider themselves part of the bingo and knitting set. They are used to a more active lifestyle than their predecessors. They are often more educated, have traveled extensively, and are more technologically savvy and with different, varied interests.

They don’t like to think of themselves as “old” and they have even moved to have the “senior” part dropped from the name and call them “community centers.”

But, the onslaught of the Baby Boomers in the senior citizen centers has caused some concern from “older” seniors, resulting in separate groups:

Robert Roswall, executive director of the Cabell County, W.Va., Community Services Organization, said older seniors at its eight centers in and around Huntington tend to ignore the newer activities in favor of bingo, daily meals, and other sedate offerings.

“They’re interested in their group,” he said. “It’s like a clique. You kind of have two groups in there right now.”

Morgan, the manager of the aging office in St. Petersburg, says there actually are three: the “G.I.” generation of the World War II era; the “silent generation” shaped largely by the 50s and early 60s, and the boomers.

“Each generation has its unique characteristics,” Morgan said. “We have to recognize the value of the G.I. generation and silent generation and not just kick them out the door. But at the same time, we have to recognize the impact of the baby boomer generation and make changes to accommodate them.”

While the concerns of the original or older population must be considered, senior centers must accommodate the interests of this new group as well in order to survive.

It used to be that senior citizen centers were a place for older people to gather for meals, but the emphasis has changed and offerings such as athletic clubs, continuing education and travel clubs can be found right along with bingo and canasta.

Operating hours will have to change, too, as many Boomers are stopping by the center on their way home from work. These increased hours and new offerings have to be balanced with the cost and staffing, so it may be that someday people will have to take on some of the cost of this themselves.

This generation of approximately 78 million people has had an impact on most everything they do and they are still going strong, but it would be great to find a way for all the groups to benefit from these gathering places.