Aging in place simply means continuing to live in our home as we get older. A recent AARP survey determined that 87% of adults over the age of 65 want to age in place. This month, we’ll take a closer look at whether aging at home is right for you.
People Who Want to Age in Place
People often say that it’s comforting to remain in their home and that it gives them the sense of independence and control that they desire. Maybe you have lived in your current home for a long time. Maybe you raised you kids there. Maybe you appreciate the ease of having established relationships with friends, with medical professionals and even with trusted services such as home and auto repair. And finally, it’s well known that change is difficult for most people and aging-in-place simply avoids (or at least postpones) such changes.
People Who Can’t or Don’t Want to Age in Place
Some people want or need more help than can be provided at home. Maybe they don’t have any nearby family. Maybe they need on-demand medical attention. Maybe they have dementia or other memory issues. Maybe they want easy access to other people and activities. Maybe transportation is an issue. Maybe they can’t afford to modify their home for an elderly resident. For these and other reasons, there are a number of options that include independent living, assisted living and nursing home care.
Affordability
Whether you age-in-place or move to a setting that offers more care, costs must be considered.
For those who stay at home, there are often costs to modify their home. This can include railings in the bathrooms and walk-in showers, remodeling to live downstairs in a two-story house, stairlifts to get up and down stairs, wheelchair access and so on. Remodeling your home to meet your needs can run between a few thousand and tens of thousands of dollars depending on your situation. And, of course, the main expense may be hiring people to come in to take care of you, to prepare meals, to do yardwork and so on. As an example, caregiver services can run about $4,500/month.
Should you choose to live elsewhere, such as assisted living, there are usually upfront costs and then monthly fees. As an example, the cost of assisted living in Colorado is about $4,000-$5,000/month and the cost of being in a nursing home is about $9,000/month. Some people opt for a Life Plan Community arrangement. In this situation, people start in their own apartment in independent living. As their needs change, they can transition to assisted living and eventually to nursing care all within the same facility. The upfront fee for such places ranges between $250,000 and $750,000 depending on the number of bedrooms.
Generally, Medicare does not fund most of these expenses. People can employ their savings and long-term care insurance if they happen to have a policy. When moving elsewhere, the gain on the sale of your home is available to help cover these expenses.
There are many other important topics such as smart homes, wearables, meal delivery, medication reminders, money management (including bill paying) and adult daycare which we didn’t cover in order to focus on how to decide whether to age in place or not. If you’d like to go over the specifics of your situation, or any other financial matter, we can discuss them in a no-charge, no-obligation initial meeting. Please visit our website or give us a call at 970.419.8212 to set up an in-person or virtual meeting.
This article is for informational purposes only. This website does not provide tax or investment advice, nor is it an offer or solicitation of any kind to buy or sell any investment products. Please consult your tax or investment advisor for specific advice.