Home Equity and the Retirement Crisis

Will My Disability Benefits Change When I Turn 65?Turning 65 years old has traditionally been associated with retirement and enrollment in federal benefit programs. However, people with disabilities may already be receiving federal benefits through Social Security, Medicaid, and Medicare before they turn 65.Disabled individuals who qualify for Social Security Disability Insurance (SSDI) and/or Supplemental Security Income (SSI) may wonder what happens to their disability benefits when they reach retirement age.The short answer is that their benefits dont end, and the amount they received prior to turning 65 remains the same. But given the complexity of the federal benefits system, there may be exceptions to these general rules on a case-by-case basis that need to be discussed with a disability attorney.Age 65 and Full Retirement AgeFor most of Social Securitys history, full retirement age, or the age at which someone could receive the maximum amount of Social Security retirement benefits based on their work history, was 65 years old.Reforms to Social Security in the 1980s raised the full-benefit retirement age to between 66 and 67 years old, depending on when somebody was born. For anybody born in 1960 and later, full retirement age is now 67.When Does Social Security Disability Convert to Regular Social Security?The Social Security Administration (SSA) does not permit a person to receive both disability and retirement benefits on one earnings record at the same time.For anyone receiving SSDI payments, their monthly disability benefit automatically switches to Social Security retirement upon reaching full retirement age. Again, this is age 66 or 67 for most people.When this switch takes place, the monthly payment amount stays the same.How Long Do Social Security Disability Benefits Last?SSDI lasts for as long as the recipient has a disabling condition and is unable to work, or until they reach retirement age, at which time the disability benefit converts to a retirement benefit.Social Security performs a continuing disability review (CDR) of SSDI recipients every three to seven years.Turning 65 or reaching full retirement age does not trigger this review. And once SSDI benefits change over to retirement benefits, there is no need for a medical review, since a recipient doesnt have to be disabled to receive Social Security old age benefits.SSI and Retirement AgeA person may qualify for SSI with a disability if they have little or no income and resources and are age 64 and younger, or they have little or no income or resources and are age 65 and older.Qualifying for SSI does not require a work history the way that SSDI does. So, someone can qualify for SSI without ever having worked. But because the SSI benefit payment is not tied to a work history, SSI benefits do not convert to retirement benefits upon reaching full retirement age.If someones receiving SSI for a disability, their benefits can continue after they reach retirement age as long as they still meet the programs financial requirements.Disabled SSI recipients are subject to a CDR at least once every three years, or every five to seven years. During the CDR, the SSA also reviews a recipients income and resources to ensure they are still eligible for and receiving the correct SSI benefit amount.Disability, Medicare, and Turning 65Medicare eligibility ordinarily begins at age 65. But people under age 65 whove gotten SSDI benefits for at least 24 months can start receiving Medicare.SSDI recipients automatically get Medicaid Part A and Part B, collectively known as Original Medicare, after receiving their 25th month of benefits. They can choose at that time to decline or keep Part B, which covers services from doctors and other health care providers. They must typically keep Part A, the portion covering inpatient hospital care.When individuals with qualifying disabilities turn 65 and gain age-based Medicare eligibility, they dont have to re-enroll or complete additional paperwork to continue receiving health care benefits.Turning 65, though, amounts to a secondary initial enrollment period. This could be a good time to re-evaluate current Medicare coverages and make changes.For example, a disabled Medicare recipient may have declined Part B coverage when they first enrolled but decide to keep this coverage when they enroll again at age 65. They can also choose to enroll in another Medicare program, such as Part C or D.Disability, Medicaid, and Turning 65Medicaid is government health care for people with limited income, including those with disabilities.In many states, SSI recipients automatically qualify for Medicaid. Medicaid eligibility thats based on receiving SSI should not be impacted by turning 65, but there could be considerations related to special needs trust funding at age 65.Medicaid covers some costs that Medicare does not, such as long-term care. Special needs trusts can help to preserve a beneficiarys access to benefits like SSI and Medicaid. But the window of time to fund a first-party special needs trust closes at age 65.Some people are also eligible for both Medicaid and Medicare. They may be able to enroll in a Dual Eligible Special Needs Plan, a type of managed care plan that helps to coordinate coverage for those with complex medical needs.Work With a ProfessionalSSDI, SSI, Medicare, and Medicaid all have complex rules that may vary by state. Whether youre turning 65 or reaching retirement age, contact Ashley Day at 251-277-3377. She can provide answers and assist with any necessary paperwork.  

How to Create a Home InventoryA home inventory can expedite insurance claims process after theft, damage or loss.Imagine needing to list every possession in your home or apartment, along with each item's worth after your belongings have been stolen or destroyed in a tornado, wildfire or other natural disaster. That task may seem impossible, so it is best to make the list before you need it. Below we've answered your basic questions on why and how you should create a home inventory.Why do I need an inventory of my home or apartment?A home inventory is an excellent way to help make home insurance and renters insurance coverage decisions and expedite the insurance claims process after theft, damage or loss. This record of your insurable assets will not only help you in the settlement of a covered loss or claim but may also help verify tax-deductible property losses and determine the right amount of insurance coverage you need.How do I create a home inventory?The first step is to decide on what type of inventory would be easiest for you to create. A home inventory can be as simple as a list of all your possessions or a visual record for each item, but an effective home inventory should include both for added security. Today, there are even digital tools to help simplify the process of maintaining the list.A written inventory: A comprehensive home inventory list catalogs your belongings and should include the item description (make, model and serial number, if applicable), value and purchase date. You can create your own list using a spreadsheet or fill out a home inventory checklist that's ready to go.A digital inventory: If you have an iPhone or Android phone, there are apps that can be downloaded to your phone, some of which are free. These mobile home inventory apps allow you to record a photograph of the item along with the description, value and purchase date.A visual record: A visual record of your possessions shows proof of ownership. This can be accomplished with a video walk-through of your home or through a series of photographs.Once you decide on the type of home inventory you want to create, according to the Insurance Information Institute, there are some simple steps you can take to start the process. Don't forget to include the items in your basement, attic, garage and any detached structures, such as tool sheds. Also, pay special attention to your most valuable possessions, such as antiques, art, jewelry, collectibles and electronic equipment. If you have any questions about which items are covered by your policy, contact your insurance agent.Record possessions as you pack to move into a new place: When moving to a new apartment or home, take a couple of extra minutes to record the belongings in each room.Pick one area at a time to record: You can start with a hall closet or small kitchen cabinet. Then, after capturing your belongings in that room, move on to the next.Record each item as you redecorate: Whether you are redecorating your apartment or a room, note each purchase you make and save the receipts. It will give you a jump start on your home inventory.Record recent purchases: Get into the habit of recording new purchases. Then, as necessary, go back and record your older, undocumented possessions. Along with the record, be sure to store sales receipts and appraisals (including the appraiser's name and address) to help verify the value of each item.Record important information: Provide a general description, where you bought it, the make and model, and what you paid for the item. Include the serial number if the item has one.Record the number of each clothing type: List, for example, "five pairs of jeans, three pairs of sneakers" Make note of items that are especially valuable.Include stored items as well: Things kept in your basement, attic, garage and other detached structures may not be at the top of your mind; however, you should record those items as well. If you have items in a self-storage unit, make sure to include them as they are usually covered under your home insurance policy.Use technology to create your digital home inventory.Take pictures. Capture important individual items as well as entire rooms, closets or drawers. Label your photos with what's pictured, where you bought it, the make or model and the serial number.Take video. Walk through your house or apartment recording and describing the contents. For example, you might describe the contents of a kitchen cabinet: "Poppies on Blue by Lenox, service for 12 that includes a dinner plate, salad plate, bowl, cup and saucer, purchased in 2015."Use an app. There are many mobile app options that can help you create and store a room-by-room record of your belongings.How should I store my home inventory?Don't let your home inventory become part of a property loss. Whichever inventory method you choose, it's important to keep a copy in a fireproof safe, safety deposit box or digitally in the cloud. You can even email your inventory to your insurance agent. Sending the list has the added value of allowing your inventory to be examined by your agent to see if you need extra home or renters coverage or to add a Personal Articles Insurance policy. If you need information about homeowners, rental, and auto insurance, call a Five Star Rated Agent:  Laurel Flowers State Farm Insurance Agent at 251-675-4736.

Aging in place is becoming increasingly important for many American families. According to an AARP survey, more than half of Americans aged 50 and older plan to remain in their homes throughout their aging journey. And its no surprise whyaging at home offers familiarity, comfort, and, with proper planning, can be a more economical option that promotes independence for longer.However, the decision to age in place comes with its own set of challenges, particularly financial ones. Rising healthcare and long-term care costs make early and open financial planning crucial for families.If your parent or loved one is considering aging at home, this guide offers practical tips to support their independence while avoiding unnecessary financial strain.1. Start the Money Conversation EarlyTalking about finances with aging parents can be uncomfortable, but its an essential step to ensure their comfort and security. Approach this discussion with empathy and openness, focusing on how you can work together to maintain their quality of life.Here are key topics to cover:Income Sources: Discuss pensions, Social Security benefits, and retirement savings like 401(k)s or investments.Monthly Expenses: Understand their current spending and where adjustments might be needed.Future Costs: Highlight potential costs like home modifications, in-home care, and medical expenses.Creating a clear picture of their financial standing helps families plan effectively and reduces future stress.(Need help starting this discussion? Check out our blog, Tips for Convincing Aging Parents to Accept Help.)2. Understand the Costs of Aging in PlaceWhile aging at home is often more affordable than senior living facilities, its not without significant costs. For context, senior facilities can cost $4,500 to $5,300 per month on average, according to the National Council on Aging.Aging at home avoids some of these expenses, but families should still anticipate:Home Maintenance and Modifications: An AARP study revealed that 52% of out-of-pocket costs for aging at home go toward maintenance and accessibility updates, such as grab bars, ramps, or stairlifts.In-Home Care: Costs for personal care or medical support staff vary depending on the level of assistance needed.Medical Emergencies: Unexpected healthcare needs, especially for conditions like dementia, can lead to surprise expenses.Understanding these costs early allows families to budget appropriately and avoid financial shocks.3. Explore Long-Term Care InsuranceGiven the high cost of long-term care, investing in a long-term care insurance policy may be worth considering. These policies can cover in-home care, nursing services, or assisted living facilities, reducing financial stress when care needs arise.Timing Matters: The earlier you purchase a policy, the more affordable it will be.Evaluate Carefully: Not all policies cover every type of care, and premiums can be expensive.If insurance isnt an option, families can explore alternative strategies, such as hybrid insurance plans that combine life insurance with long-term care benefits.4. Prioritize Home Safety ModificationsCreating a safe living environment is key to helping your parent stay independent at home. Start with basic home modifications:Install grab bars in bathrooms.Add ramps or stairlifts for improved mobility.Ensure good lighting throughout the home to reduce fall risks.These changes can cost anywhere from a few hundred to several thousand dollars but are crucial for safety and peace of mind.Beyond modifications, consider investing in medical alert systems or fall-detection technology to provide an added layer of security.5. Plan for In-Home Care NeedsAs your parent ages, their care needs may increase. Early planning ensures that youre ready for the transition:Start Small: Part-time help from a home health aide may suffice initially, covering tasks like meal preparation or light housekeeping.Scale Gradually: If full-time or overnight care becomes necessary, families should prepare for costs that can exceed $100,000 annually.For lighter support, consider intermediary services like Naborforce, which connects aging adults with Nabors who assist with everyday tasks, such as transportation and grocery shopping. These services can extend independence and delay the need for more intensive care.6. Understand Medicare, Medicaid, and Additional ResourcesNavigating government programs can be daunting but essential for offsetting care costs:Medicare: Covers limited short-term in-home care, typically after a hospital stay, but not long-term care.Medicaid: Offers comprehensive coverage for long-term care, though eligibility is income-based and requires a detailed financial review.Additionally, research state-level programs, veterans benefits, or caregiver compensation opportunities that may be available in your area.7. Stay Flexible and Plan for the UnexpectedEven with careful planning, caregiving can come with unexpected twists, from sudden health changes to financial surprises. Build a cushion into your budget to account for emergencies and remain flexible in your approach.Helping your loved one age comfortably at home requires careful planning, open communication, and the right resources. By addressing finances early, making necessary home modifications, and utilizing services like Naborforce, families can create a supportive environment that fosters independence and comfort.Aging at home is not just a choice; its a commitment to ensuring your parents dignity and quality of life. With a solid plan in place, you can navigate this journey together, providing your loved one with the care and security they deserve.And when you need a helping hand, remember that Naborforce is here to support you every step of the way.A Helping Hand for Older Adults - Naborforce 844-696-2267 Were Naborforce. We match older adults who need a little help and kindness with Nabors eager to provide it, strengthening the communities we serve. Everyone can use a little help. Help around the house. Help running errands. Help preparing a meal. Help by just being a friend! Our goal is to promote joyous and independent aging and living while providing peace of mind to families.