As more American families face the reality of aging, in-home care is becoming a preferred option. A recent AARP survey shows that over half of Americans aged 50 and above plan to remain in their homes as they age, and for good reasons. Staying at home offers comfort, familiarity, and with proper planning, can also be more cost-effective while promoting longer independence for elderly parents.
With the continuous rise in healthcare and long-term care costs, having early and honest financial discussions is key.
If your loved one is thinking about aging at home, we’ve created this guide with useful tips to help support senior independence while easing the financial burden.
Here are steps to ensure your parents or loved ones age safely and comfortably at home.
1. Start Financial Discussions Early
While it can be uncomfortable to talk about finances with aging parents, it’s a vital conversation to have. Begin by reviewing their current financial situation, including assets, debts, and regular expenses. Also, look into possible income sources such as:
- Pensions
- Social Security
- Retirement savings (401k, investments)
Being open helps you understand your parents’ financial landscape while making them feel supported. Approach this conversation with compassion, emphasizing how you aim to maintain their quality of life while preparing for the future.
(Need tips on convincing an aging parent to accept help? Check out our blog on how to navigate these conversations.)
2. Understand the Costs of Aging at Home
According to the National Council for Aging, the average monthly cost of a senior care facility ranges between $4,500 and $5,300, a significant financial strain for many families. Aging at home can be more affordable, but it's essential to account for associated expenses.
One of the hidden costs of aging in place is home maintenance and modifications, which can account for up to 52% of out-of-pocket expenses, according to a 2021 AARP study. Personal care services and medical staff, if needed, can also add to these expenses. For a detailed breakdown of long-term care costs, including potential surprises for families dealing with conditions like dementia, check out this Wall Street Journal article.
3. Explore Long-Term Care Insurance
With rising care costs, long-term care insurance can help cover expenses for in-home care, nursing, or assisted living. The earlier you invest in a policy, the more affordable the premiums.
However, long-term care insurance may not be suitable for everyone. It can be pricey and may not cover all types of care. For more information, AARP’s guide on hybrid policies, which combine life insurance and long-term care benefits, is a good resource.
4. Plan for Home Modifications and Safety
To keep your parents safe at home, certain home modifications, such as installing grab bars, ramps, or stairlifts, might be necessary. These changes can range from a few hundred to several thousand dollars depending on your loved one’s health needs.
(Looking for affordable ways to enhance home safety? See Naborforce’s top 10 safety tips for under $10.)
In addition to modifications, budgeting for adaptive equipment or medical technology like alert systems is crucial. These devices help ensure that your parents can access help quickly, contributing to their independence and peace of mind.
5. Managing In-Home Care
If in-home care is required, costs will vary depending on the level of assistance needed. While part-time help from a home health aide may suffice initially, your parent may eventually need full-time or 24-hour care, which can cost over $100,000 per year.
Before reaching that point, services like Naborforce can offer interim support, providing help with small tasks like running errands or getting to appointments. This can extend your parent’s independence and delay the need for full-time care.
6. Know About Medicare, Medicaid, and Other Resources
It’s essential to know what benefits your parents may qualify for. While Medicare does not cover long-term care, it can provide short-term in-home care under certain conditions, such as after a hospital stay. Medicaid, on the other hand, covers long-term care but is means-tested, so eligibility will depend on a careful review of their financial standing.
You should also explore local and national programs, including veterans’ benefits or state assistance programs, which can help offset the cost of aging in place. In some cases, if you become a caregiver for your loved one, you may be eligible for caregiver payments, depending on your state’s regulations.
Conclusion
Helping your parents age at home requires thoughtful financial planning, including income assessments, long-term care options, and preparing for unexpected medical needs. Starting early and maintaining open communication can make the process smoother, providing your loved ones with the comfort and security of aging in their own home. And remember, whenever you need an extra hand, Naborforce is here to help!
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