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March 01, 2024

12 Financial Planning Tips For Seniors To Age In Place

Did you know that approximately 80% of older adults in the US don't have the financial resources to cover long-term care services or unexpected financial shocks [1]? Another 2016 study showed that 29% of households with a worker aged 55 and older had neither retirement savings nor a defined benefit plan [2].


This lack of planning is detrimental to a successful and independent senior life at home.


Aging in place is your ability to live independently, comfortably, and in peace wherever you want while receiving the right care to see you through a successful senior life. However, all these benefits come at a worthwhile cost that anyone who plans early enough can afford. Let's show you how to financially plan to age in place.


When Should You Start Planning to Age in Place?

The best time for older adults to start planning for aging in place is in the early fifties when the health and care needs have not yet kicked in. This is because it leaves enough time for comprehensive planning, financial preparedness, reduced stress and burden, and peace of mind.


Here are a few factors to consider when determining when to start planning for aging in place:

  • Health and mobility: Aging in place is challenging if you have existing health conditions or mobility limitations. If you are in good health, starting the planning process earlier allows you to address potential health concerns proactively and make necessary modifications to your living environment to enhance safety and accessibility.
  • Financial preparedness: Planning to age at home involves assessing your financial situation and determining if you have sufficient resources to support your desired lifestyle and potential care needs. Starting early allows you to save, invest, and get the right insurance, to ensure you have adequate funds for your future.
  • Housing considerations: If modifications or renovations are required to make your home more accessible and safe, starting early gives you time to plan and undertake those changes. Alternatively, you may choose to downsize or explore other housing options that better align with your needs and preferences.
  • Legal and estate planning: Creating or updating important legal documents, such as wills, trusts, and durable powers of attorney, is crucial to aging in place. Starting early ensures you have these documents in order and can make financial decisions regarding healthcare proxies, asset distribution, etc., while you are still able to do so.
  • Emotional and family considerations: Planning for aging in place involves discussions with loved ones and considering their support and involvement. Starting early allows for open communication, understanding, and cooperation among family members, reducing potential conflicts and ensuring everyone is on the same page.

Remember, even if you haven't started planning for aging in place, it's never too late to begin. Seeking guidance from professionals can provide valuable assistance in creating a comprehensive plan tailored to your specific needs and circumstances.


Helpful Financial Planning Tips for Aging in Place

Below is a list of helpful financial planning tips to help you successfully age at home:


1. Start Early Enough. Start Now!

As mentioned earlier, you must begin your financial planning for aging in place as early as possible. The earlier you start, the more time you have to save, invest, and make necessary adjustments to your financial strategy. Money management is one of the most difficult things to do on your own when you're aged, take advantage of this moment and start now.


2. Arrange with an Aging-in-Place Organization (Kendal At Home)

If you plan to live in your home as long as possible in your retirement years, one of the smartest financial decisions you'll make is becoming a member of an aging-in-place agency. Aging in place goes beyond merely having a financial plan; it is more about how your money is used to help you achieve a fulfilled, independent, and successful life of peace when you're older.


At Kendal At Home, you'll enjoy care management, care coverage, and a comprehensive plan for healthy aging. This ensures you have all you need when you need it. Take the bold step today.


3. Understand Your Current Financial Situations

Take stock of your current income, expenses, assets, and liabilities. Evaluate your retirement savings, investments, and any other sources of income. Understand your financial standing and how it aligns with your goals for aging in place.


4. Create a Monthly Budget

Develop a budget that reflects your expected income and expenses during retirement. Factor in your projected medical care and personal care costs, living expenses, and any additional costs specific to aging in place. A budget will help you manage your finances effectively and ensure you are on track with your goals.


5. Complete a Durable Power of Attorney

You must have a durable financial power of attorney (POA), naming a trustworthy person to make financial decisions on their behalf when you can't. This ensures you have another set of eyes looking at your account. A caregiver family member can assist with monitoring and managing your money. You'll also need to name a health care power of attorney, which is someone who can make medical decisions on your behalf.


6. Review Your Insurance Coverage

Assess your insurance policies, including health insurance, long-term care insurance, and life insurance. Determine if your coverage is adequate for your needs and consider making adjustments if necessary. What you need is a policy that covers your daily living and future needs.


7. Make a Plan for Long-Term Care

Long-term care is a significant expense as you age. Explore options such as long-term care insurance, setting aside funds specifically for potential care needs, or researching government assistance programs. Be proactive in planning for these potential costs, as they'll determine how stress-free your older years will be.


8. Streamline and Automate Bill Payments and Income

Incorporate a smarter, more straightforward solution for monitoring your income and bills. Setting up automatic income sources and bill payments ensures balance and prevents overdue bills. Banks and institutions like Social Security assist in setting up direct deposits and debits.

Older adults with memory problems like dementia and Alzheimer's may have difficulties paying bills, utility, and mortgage, and monitoring credit card debts, so consider naming another person (POA) to handle this when you're unable to make these decisions.


9. Look Out for Financial Scams

Older adults are particularly susceptible to tech support scams, where scammers impersonate technical support personnel and convince victims to pay for unnecessary services. Older adults are five times more likely to lose money in tech support scams compared to younger consumers [3]. Be more watchful and avoid jeopardizing your comfort in retirement.


10. Build an emergency fund

Having an emergency fund is crucial for unexpected expenses or financial challenges that may arise. Aim to set aside a portion of your savings as an emergency fund to provide a financial safety net. An emergency fund may also provide flexibility in terms of affording crucial needs.


11. Leverage Government Programs

Take advantage of government programs for financial support, including tax relief, by researching and determining your eligibility. Seek professional guidance to navigate the application process and incorporate program benefits into your financial plan. Stay informed, update your plan, and consider long-term implications for optimal financial well-being.


12. Seek professional advice

Consider working with a certified financial planner or financial advisor who specializes in retirement and aging in place. They can provide personalized guidance, help you optimize your finances, and address any concerns or questions you may have.


Begin Your Journey to a Successful Senior Life with Kendal At Home

Embark on a path to a fulfilling senior life by becoming a member of Kendal At Home today! Experience the freedom and peace of mind that comes with comprehensive support tailored to your unique needs.


Enjoy the comforts of home while gaining access to a personal care coordinator, personalized care, and a range of exceptional services. Take the first step towards a rewarding and worry-free senior life. Contact us now and step into a world of possibilities.

Healthy aging is hard on your own. Kendal at Home can help you age well and enjoy your retirement.

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