Peoples’ opinions of retirement tend to vary. Some are excited for it in their early thirties. Others dread it until the very last minute. Some have plans to travel the globe or try a new hobby. Others love their daily jobs and don’t want to leave them until they absolutely have to. There are a lot of variables in play, which is why many feel trepidations. You don’t know what your daily schedule will look like, and often – how bills will get paid? You feel this regardless of whether you’re the one impacted by retirement or if you’re trying to care for a loved one. Either way, there’s a decision that you’ll have to make and that’s where you or your loved one will stay. Today, the Australia Heritage Homes team dives in to how to navigate retirement housing.
There are many options for retired seniors, but the costs can be high. In fact, you’re looking at more than $3,000 a month per year and that cost will only continue to increase. Assisted living is your least-expensive bet. Any facility will be much, much more.
Luckily, we live in a day and age where education is also increasing, so seniors who are retiring either have the information and resources that they need, or their families do. There are many options of funding. These include leveraging personal savings that may have been built over your lifetime, long-term care insurance, government benefits, home equity and more.
The first line of planning tends to be letting go of existing assets. We know that it’s hard, but the home that you’re currently living in may not work well once in you’re in retirement. Your day-to-day routines will change and over time, you will need more support. You can’t necessary depend on family members, on friends or even on neighbours for this.
A director of Retirement Income Program, Jamie Hopkins, agrees:
“For most Americans, their house is their largest asset. Selling it will be the biggest pool of funds they’ll have.”
Long-term care insurance is very popular with experts around the world, no matter what your situation looks like. It can cover almost $3,000 a year. It means that you get benefits of assisted living like being fed, bathed and dressed. There are even hybrid products that can help out with both life insurance and annuities. But, here’s where long-term care insurance falls short. It doesn’t cover things like independent living. Long-term care insurance can also fall short because your financial assets need to fall in a specific range, no matter what your health looks like.
Medicare is another option, depending on where you live. You need to be 65-years or older, but Medicare will take care of any hospice care or nursing-home stays.
We have lots more to come on this topic, because we know that it’s incredibly important. Next we’ll discuss the ways that you can design your home, so that it’s appealing and accessible, no matter what stage of life that you’re in.