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Can your elderly loved one afford to age in place during retirement?

On Behalf of | Nov 4, 2024 | Aging in Place |

Older adults often rely on their family members for various forms of practical support. After a certain age, they may ask their children or grandchildren to help them handle certain repairs or household cleaning. Some older adults may actually need the support of professionals who help administer medication and handle the necessities of daily life.

Getting proper support is crucial to an older adult’s comfort and safety in their golden years. However, such support can make it cost-prohibitive for older adults to continue living in their own homes. Many older adults may overlook their financial vulnerability when trying to age in place.

How can those concerned about vulnerable older adults determine if they can continue to afford their living arrangements?

Look at baseline housing costs

Looking at the resources in older adult has set aside for retirement and their housing expenses is a good starting point. Families can determine whether an older adult’s retirement savings and Social Security benefits are adequate for them to afford their mortgage if they still owe money on their home.

Families also have to consider the cost of insurance and property taxes. Tax obligations can be a major hurdle, as the appreciation of property values over time might mean that what older adults have set aside for those costs could be insufficient later in life. Utility costs and the expenses inherent in securing assistance for services ranging from repairs to snow removal can also influence whether living at home is practical for an older adult.

Explore medical support needs

Particularly in scenarios involving medically vulnerable older adults, the cost of in-home nursing support and other practical support needs can make staying in a private residence unaffordable. Even those who might be able to cover the costs of housing itself may struggle when factoring in the cost of in-home nursing support and other long-term care expenses.

The ability to cook and the reliance on convenience foods or delivery services can be another important consideration. In some cases, moving to a nursing home or similar facility can actually be more cost-effective than attempting to remain in a private residence.

Looking carefully at a loved one’s budget and their support needs can help those concerned about the long-term care costs of aging family members who must make plans for their comfort in their golden years. Sometimes, families may have to intervene when older adults don’t have the resources or physical ability to live independently later in life.