The U.S. population continues on growing older, with the baby boomer generation now the largest generation ever. By 2035, one in three heads of households will be someone age 65 and older. The American population will have one in five people age 65 or older, an increase of 30 million people over the next thirty years. Not all people in this group have recovered from The Great Recession, leaving them with lower incomes and homeownership rates than previous generations. As our population ages, the demand for affordable housing connected to accessible services will continue to increase, and many will find their own homes the only affordable option.
90% of homeowners approaching retirement plan on “growing older at home” in their own homes, according to a 2018 survey by AARP. Although survey respondents say they plan to stay in their own homes, only half think they’ll be able to stay until the end of their lives. Other findings:
While you never know what your needs may be as you are growing older, the first step is thinking about what help you may need in the future. Do you have health issues now, or does your partner? Will there be a progression of your illness over time requiring special care or modification of your home? In addition, health problems can make it hard for someone to care for themselves as they age.
You can get almost any type of care at home-but at a cost. Check into home health care in your area and include health care costs (including long term care) in your financial planning. Health care is one of the highest expenses in retirement, especially as health issues arise.
However, on a broader definition, aging in place means living independently in a home that is right for your needs. That definition may mean down-sizing to a smaller home, living in an assisted living facility, or a long-term care facility. Aging seniors may choose to live near or with family members. Common concerns of aging seniors include:
In conclusion, if you plan to age in place, it’s important to discuss your intention with your family. In addition, a discussion with your financial advisor now will help you prepare and make it possible.
First Fruits Asset Management has been in the financial services profession since 2007. The business is built on a foundation of partnership with clients. We work together to create a personalized financial plan and then review and revise the plan as situations and/or goals change over time. Contact us today to learn more about how we can build a partnership with you today.