When you stop to think about it, what we think of as “retirement” today would have been a completely unfamiliar concept to many of our grandparents, and almost all of our great-grandparents. First of all, in times past, the average life expectancy was much lower than it is today, when many of us can expect to live well into our 80s, 90s, or even longer. Some experts estimate that during the next 30 years, the number of centenarians in the US will quadruple. But for our forebears, the expectation of living for ten, twenty, or more years after one’s active working life was much rarer than it is today.
The fact that many of us will enjoy longer lifespans brings up some questions that our ancestors didn’t need to consider: How do I want to spend my retirement years? How much will it cost to live the way I want to live? Do I want to continue to work part-time after retirement—or even start a new career? All of these considerations are important, but there is one more that perhaps trumps them all: Will I stay in my home, or move into a retirement community?
This last decision really has no wrong answer; both moving into a retirement facility or living out retirement in one’s home (“aging in place”) are viable options. Both have advantages and disadvantages, and both require some advance planning. In this article, we’ll look at some things you need to anticipate and plan for if you plan to age in place during your retirement.
Aging in Place and the Phases of Retirement
We’re all familiar with the various phases of adult life: early career, raising young kids, mid-career and older children, the empty nest, and preparing for retirement. But it’s important to understand that retirement has different phases as well. The latter years of retirement, especially, will probably look very different than the early years. A healthy, active 65-year-old is likely to have different interests, activities, and expectations than someone in their mid-80s who may be dealing with one or more of the medical conditions that can go along with aging.
If you plan to age in place, it’s important to consider these limitations that sometimes accompany one’s later years. Certainly, there are advantages to aging in place: familiarity with one’s surroundings, easier maintenance of established relationships and community, and, often, an increased feeling of independence. Perhaps this is why, according to a 2018 AARP survey, 76% of Americans 50 and older said they hoped to remain in their homes after retirement.
On the other hand, reduced mobility, falling and tripping risks, failing vision and hearing, and other conditions that typically accompany life’s later years may require some re-thinking and revisions around the house. Area rugs and carpets, for example, while attractive decorating features, can also get tangled in the feet and cause serious injury. If the home has two stories or more, will you still be able to climb the stairs at age 85? And speaking of stairs, what about front steps? You may need to consider installing handrails or, in some cases, wheelchair access.
Lighting in the home should also be considered. While “mood” lighting in living areas is popular, better illumination may be a smarter choice for those whose vision isn’t as sharp as it used to be. If bathtubs and showers don’t have “grab bars,” they should probably be installed, since bathtub slips are a major cause of fall injuries for older adults. Depending on your mobility needs, you may even want to consider the installation of a walk-in tub or shower.
In other words, those who plan to age in place should do a careful inventory of the home, looking for modifications that might be needed to make the home safer and easier to navigate. You may even want to consult a qualified contractor to obtain estimates for what it might cost to make the needed changes. These costs can then be factored into your future spending plans.
Aging in Place and Long-Term Care
Estimates are that as many as 70% of those aged 65 today will need long-term care at some point in their lives. Long-term care includes assistance with activities of daily living (ADLs) such as getting up and down from a bed, toileting, maintaining a proper diet and food preparation, keeping up with medications, and other activities that can become more challenging with age. The cost of providing these services is not covered by Medicare, and those who plan to age in place may need to call upon a family member or, when that is not a practical solution, hire a home healthcare aide.
Because home health care can cost $5,000 per month or more, depending on the level of services provided, those who plan to age in place are wise to factor this cost into their retirement budget for the later years. It may also be advisable to consider purchasing a long-term care insurance policy while one is younger and relatively healthy, to help defray many of the costs of long-term care that might be needed in the future.
At The Planning Center, we understand that each individual has a unique image for the “ideal retirement lifestyle.” Our goal is to understand your goals so that we can help you plan efficiently to achieve your desired outcomes. To learn more, visit our website to read our article, “Social Security and Retirement Planning: Making the Right Calls.”
