Ron SmithPublished on AIP - More Reasons to Plan for Aging in Place in Advance
There are some great benefits to aging in place. It can cost less if they already own their home and be more comfortable since there is “no place like home. ”Aging in place can slow the advancement of memory loss because being able to maintain your current social network can decrease cognitive decline. Aging in place can also help to improve your self-determination. This is especially true for seniors who only need occasional help to maintain their independence and freedom. Staying in your own home can support a healthier and safer living environment.
Aging in place does not happen easily without some prior planning. I would like to introduce you to some of the primary factors that need to be considered not only for aging in place but for a successful retirement.
Financial readiness and affordability are likely to be significant obstacles. The Harvard University Joint Center (HUJC) in 2014 reported that 31 percent of older households were housing cost burdened (i.e., they spent more than 30 percent of their income on housing). By 2035, 17.1 million older households will be housing cost-burdened with about half of those households spending more than 50 percent of their income on housing. In addition, 51% of older workers have only saved less than $50,000 for retirement. Only 44% of those surveyed think that they will have enough income to carry them through retirement.
HUJC estimates that “by 2035, 17 million older households will include at least one person with a mobility disability for whom stairs, traditional bathroom layouts, and narrow doors and corridors may pose challenges, a 77 % increase from today. Yet, only 3.5 percent of US housing units offer a zero-step entrance, single-floor living, and wider doorways and hallways that can accommodate someone in a wheelchair.”
When planning and building a new home, the cost of adding the above features can be achieved at a nominal 5-10 percent incremental cost because you’re are starting with a plan that has the appropriate footprint for these features. The added cost of materials and labor is minimal.
To accommodate stretched budgets and limited home care resources, alternative forms of housing may present solutions. Homesharing, multigenerational living options, village concepts and independent living options (Continuing Care Retirement Communities) are all possibilities. Note that all of these options will also need to incorporate the same kind of universal design features to promote a safe, comfortable and livable environment.
The Long-Term Care Insurance Arizona Partnership says that someone turning 65 today has about a 70 percent chance of needing some type of long-term care during their lifetime. While one-third may never need long term care, 20 percent will need it for longer than 5 years. The average length of time people need long term care services is 3 years. In the Phoenix area, assisted living facilities can cost from about $141,255 to $169,725 for three years. The average cost for 3 years of long-term nursing home care is $295,650. That cost is projected to be $533,976 in 2040!
Remodeling costs will vary depending on the current state of your home as well as the obstacles you foresee that yourself or a family member may encounter. Typical areas include bathrooms, bedrooms and kitchens to improve accessibility and safety. Accessibility from the front door throughout the house can get very expensive if it requires reframing or a staircase project. You might also need to make outdoor improvements regarding path lighting and accessibility which might include a ramp or a lift. Average renovation costs can range from around $50,000 to nearly $200,000 if you have to deal with a second-floor access problem. Not everything necessarily has to be done at the same time, but each project will also cost time and cause disruptions to your family’s lives. Costs can be covered by personal savings, financial loans, grants, labor and equipment loans.There is some hope that Medicare Advantage programs in the future may have provisions to cover some costs.
There may eventually be the added cost of home medical care or non-medical support services. Genworth reports the estimated 2022 cost of care in the Phoenix area to be around $62,920 for a home health aide and a little less for home maker services. Some support services may be available from area volunteer services, such as, Neighbors Who Care (NWC).NWC estimates that the services that they provide can add up to five years of additional living in a person’s own home. These home services can reduce the potential number of years that institutional care might be needed.
When considering the best option for any individual, actuarial tables can provide the average length of a stay in an assisted living facility or a nursing home. Multiplying the average length of stay times, the estimated costs can help evaluate the relative costs of living longer in your home versus the cost of an institutional placement.
Family considerations are very important in your planning. Do they live near you? Can they be of assistance with your care? Can you live with them? How do you reassure your family that you are living safely and well if they don’t live near you? Do you still have living family? Do you want to stay independent from your family?
Not all people will want to or should age in place. Emily Reynolds says that catch phrases like “aging in place” being used to describe the latter years of our lives are “negative, joyless and lack nuance. ”What we really want is to thrive in places and communities that are “best for us in this moment, whatever moment it might be. ”There can be many other exciting options for some. The new alternative forms of housing may decrease housing costs and provide for a better chance of socialization and support. Some people will eventually reach a point where care requirements can no longer be met within one’s home necessitating a move to a better equipped and staffed environment. The point is that the living at home option can be a better solution for many if they are prepared for it.
So, let me ask you a question: If you could buy a home that would provide you a safer, more comfortable environment for your family to live in AND adapt to changing physical needs or the “crisis” when it occurs for a minimal (5-10%) upfront purchase price increase would you do it? You probably can’t answer this question right now, but hopefully you’ll be better prepared after we explore in more detail the planning factors described above and the benefits of specific features we should be looking for in a new home.
Emily Reynolds, 6//7/2021, An Argument Against “Aging In Place”, https://blog.silvernest.com/author/emily-reynolds
Ron Smith is a living-in-place advocate, a member of the Age-Friendly Maricopa Advisory Committee, a Certified Aging-in-Place Specialist (CAPS) and a Certified Living in Place Professional (CLIPP™)
