It’s not news that a majority of people want to stay in their own homes for as long as possible. “Aging in place” is the mantra.
It’s also not news that “aging in place” will require certain features in the home, and may also require access to services like in-home health care. We’ve written about this extensively, both in our book and here, here and here.
But while it’s easy — and can even be exciting — to outline the features of a home that is suitable for aging in place, what about the reality? How many people are ready and able to create such an environment? Do they know what’s required? Are they planning for it properly? Will they be able to fund it?
As reported here, “research shows that there is frequently a disconnect between older adult’s desire to remain in their home and the preparation — and potential costs — that this decision may necessitate.”
The article draws on stats published in Forbes, which in turn were taken from a University of Michigan report and poll on older adults’ preparedness to age in place. Read the full article to get all the details, but here are some highlights:
– Only 34% of respondents said their homes “definitely” had the features needed to allow them to age in place, while just under 20% said their homes did not. This “suggests that in order to safely remain living in their current home, many people would potentially need to make sometimes costly home modifications”
– In addition to home modification, there is the (immediate or eventual) need for in-home assistance. The high incidence of chronic health conditions (85% of adults over 65 have at least one chronic condition) and risk of cognitive decline make this an urgent topic. Are people ready? Almost 30% of poll respondents reported living alone, and a third said they had no one who could help with personal care. More than one in three older adults ages 50 to 80 “report feelings of loneliness, lack of companionship and/or isolation in the past year.” This suggests a reliance on paid in-home services. But what is the cost, and are these services enough? “Forty hours per week of home health aide services will cost $5,625 per month, on average. And the cost of these services is only going up. (Bear in mind too that this is only for 40 hours of assistance per week, leaving 128 hours each week that would potentially need to be covered by other paid care providers or loved ones.)”
– How many people can pay? Only one in five poll respondents said they were “very confident” they could pay for any necessary help with household chores, grocery shopping, financial management or personal care. Just under 40% were “somewhat confident” and over 40% (43%) were not confident.
Bottom line, from the perspective of SuperAging:
– It is more important than ever, to get an early and accurate assessment of how your current home measures up in terms of aging in place. In our book, we recommend conducting a formal “autonomy audit” to see what features you have and if/how they will work going forward.
– It is essential to build these costs into your future financial planning. Financial advisers are increasingly paying attention to this issue. If yours isn’t, find out why. Or consult someone else.
– We predict that this will become an increasingly hot topic for public policy. There will be a call for more tax credits for home modification, and more financial support for those who need help in paying for in-home care. The savings to the health care system, of having someone aging in place vs. being hospitalized, are enormous. There will be pressure for better and more coordinated tax incentives, direct subsidies, and other forms of social support.