Growing older is a privilege, and preparing for the care you will need as you age is very important. As you grow older and reflect upon your life, you may wonder how to prepare for comfortable later years and plan for the possibility of long-term care, especially if you are aging alone without family support.
According to the United States Census Bureau, 15.2 million Americans aged 55 and older do not have children. In many cases, adult children care or arrange for care for their aging parents. The population of older adults without children or immediate family to help with needed care must plan for their future and long-term care on their own.
If you are a senior aging on your own, know that you aren’t alone but that you must carefully plan for your future, including your health, your financial well-being, how and where you want to live, and more. Let’s break down those factors and learn the options to meet all your needs in future years.
Living arrangements
Your living arrangements are one of the most important considerations for your long-term care plan. As people age, their ability to care for themselves typically changes over time. Consider these two facets that compose your basic daily life and where you live:
- •Do I want to remain living independently in my own home or apartment?
- •Can I safely and effectively clean my home, cook my own meals, and do other daily household and personal tasks?
Now, let’s consider these two follow-up questions:
- •If I want to live independently in my own home or apartment, can I?
- •If I can safely take care of household tasks and basic, everyday personal tasks, do I want to continue to have that responsibility for the rest of my life?
It’s important to consider what you want to do and be realistic about what you can and will do. Remember that your desires and capabilities may change over time. Here are some options for meeting your needs and desires for your living arrangements as you age:
Remain living independently in your current home
Many seniors want to continue living in the homes they’ve had for years or where they currently live. This is a viable option as long as you can either care for yourself to maintain your health and emotional wellness or arrange for the proper care.
If you live independently but need help, you can take steps to make your home safe to age in place, whether they are simple actions like removing area rugs to decrease fall risks or larger home modifications like installing wheelchair-accessible bathtubs to make bathing independently easier. You can also arrange for home care services to bring in caregivers who help with daily living tasks.
Downsize to a senior apartment
If you want to live independently rather than in a senior living community (which we’ll explain next), you can also choose to downsize from your current home and move to age-restricted apartments, also known as senior housing.
Senior housing offers many benefits to people who want to age in place. Though the types of apartment communities vary, many of them are less expensive than the market rate for standard apartments. These are great options for seniors who do not exceed the maximum income requirement because they are more affordable. They may also have limited features, such as common rooms where residents can spend time with each other, maintenance managers, and outdoor areas like tennis courts or walking trails. The exact income requirements and amenities vary, so your local options may differ.
Similar to seniors who remain living independently in their homes, those who move to a senior apartment are still responsible for all of their own care. If you move to senior housing and need help with cooking meals, bathing, or other tasks, you must arrange for your care. You can adjust furnishings to increase safety, but because you are renting the apartment, you will likely not have the option of making a modification like adding a wheelchair-accessible bathtub.
Move to a senior living community
This is another common living arrangement that many seniors choose. Different types of senior living communities exist to meet an individual’s needs. Independent living communities offer many features and amenities that older adults may want while living on their own and caring for all their needs. Assisted living communities offer individual apartments or studios in one building with a dining room, common areas, activities, and other services. This is a great option if you need help with personal care tasks and housekeeping or simply don’t want the responsibility of taking care of a home or cooking meals anymore. Continuing care retirement communities exist to provide older adults with all the levels of care they’ll need over their lifetime, from independent living options to assisted living, nursing home care, and hospice.
All these types of senior living communities typically cost more than senior apartments because of the services and amenities they offer. Still, it could be a great option if you would otherwise need to hire home care providers because home care costs can add up quickly and make monthly bills expensive in addition to rent or a mortgage, utilities, groceries, and other expenses.
To decide what living arrangements will meet your needs, you should consider your current and potential future health condition. Let’s take a look at health care options next.
Health status and care considerations
Your health may be stable now, but your health status can change quickly. A solid health care plan allocates resources to your basic needs and any care you may want or possibly need beyond that.
Make sure that you’re enrolled in a comprehensive health insurance plan that meets your everyday needs, like filling prescriptions and attending doctor appointments, and also helps pay for unforeseen events, like hospital or short-term rehabilitation stays. Medicare is the federally run health insurance program for adults age 65 and over and offers plans that help cover these kinds of costs. You also have the option to have a Medicare Advantage plan.
Pay close attention to your health throughout the aging process to remain proactive in protecting your vitality rather than reacting to issues that arise. Seeing your primary care physician and necessary specialists regularly can help you maintain your health. When you visit, ensure you are prepared to make the most of each appointment.
Remember that Medicare, Medicare Advantage, and other health insurance plans are for medical issues. With only a few exceptions, these plans do not cover the costs of personal care that older adults often need. Home care providers’ services, like helping with bathing, dressing, meal preparation, and housekeeping, are not medical, so typical health insurance doesn’t cover those costs.
Since it’s difficult to know what nonmedical services you’ll need in the future, it’s vital to financially prepare for the possibility of incurring these costs. Let’s cover the financial considerations for planning for long-term care next.
Improve your financial security
Senior care costs can add up whether you live at home independently or in a senior living community. Here are some financial strategies you can use to plan and arrange the care you need.
Long-term care insurance
A common financial product that people buy to help cover senior care costs is long-term care insurance. This type of insurance policy differs from your typical health insurance because you can use it to pay for nonmedical services and care, like having a home care provider come to your home or to help offset the price of a senior living community.
Ideally, you will purchase a long-term care insurance policy in your 50s or early 60s. Those aged 65 and over may still be able to purchase a policy, but you may pay higher premiums.
Life insurance
Having a life insurance policy can also help, depending on the type of policy you have. People may think that life insurance is for people who want to leave money to someone after they pass, but the policyholder may be able to use the funds during their lifetime to help pay for senior care. From using the accelerated death benefit to taking a life settlement and other options, life insurance policies can be helpful to you if you need to pay for long-term care. Many types of policies are out there, so you’ll want to talk with a trusted life insurance provider to learn which is best for you.
Veterans benefits
Qualifying U.S. military Veterans and their surviving spouses can access several benefits offered through the U.S. Department of Veterans Affairs (VA). Aid and Attendance, for example, provides additional income to eligible Veterans and surviving spouses that can help pay for long-term care. This added income can be used whether the recipient lives at home or in a senior living community.
To qualify for Aid and Attendance, you must meet multiple criteria regarding your service, care needs, income, and net worth. If you qualify, you can get up to over $2,000 per month to help offset care costs.
Return to part-time work
If you’ve already retired, one way to improve financial stability is to return to work part-time if possible. Many employment options exist that can help seniors continue to earn money while they collect Social Security benefits. Though there is a maximum amount you can make per year, that income can help you cover living expenses and save for a time when you need to pay for care. Returning to work can also provide social interaction that you might miss, along with a routine and opportunity for physical movement — all of which can help maintain or improve emotional and physical health.
Professional help with long-term care planning
Resources exist for seniors starting to plan for their long-term care. Professionals can help ensure that you have a rock-solid plan before you reach the age when you need to put your plan into practice. These professionals include:
- •Elder law attorneys.
- •Accountants and financial planners.
- •Investment advisers.
- •Medicaid/Medicare counselors.
Government assistance for long-term care planning
You can take advantage of several government assistance programs that help supplement the expenses older adults incur. Examples of government programs include the following:
Medicaid
Medicaid is a federally and state-funded health insurance program. It provides insurance coverage to low-income Americans and can help people pay for long-term care. This is an income-based program, so individuals must have low income and assets to qualify.
Program of All-Inclusive Care for the Elderly (PACE)
The PACE program helps seniors still in their communities coordinate medical care. PACE professionals help older adults access all medically necessary care while they continue to live in their homes rather than needing to move to a nursing home.
Bottom line: You can plan for your own long-term care
Not everyone has family to care for them as they age. Getting older, even alone, doesn’t have to be a time of uncertainty and stress. Taking steps now to plan for the possibility of long-term care in the future can give you peace of mind. With proper planning, you can ensure that your later years are comfortable, healthy, and enjoyable.
