Freedom. Enjoyment. Stress-free.
Those are the top three words that workers surveyed by the TransAmerica Center for Retirement Studies said they associate with retirement. However, to enjoy freedom in retirement and live stress-free as you age, you need to take steps to protect your finances. Otherwise, you could end up facing the biggest fears that those surveyed by TCRS said they have about retirement: outliving savings and declining health that requires long-term care.
If you want to age in place, your home will likely need modifications to allow you to remain there as long as possible. However, successfully aging in place requires more than just a first-floor bathroom and bedroom, wide doors, entrance ramps and other accessibility features.
Your parents will likely want to remain in their home as they age. The problem is, their home likely doesn’t have the features your parents need to live safely and comfortably. In fact, only 10% of homes are aging-ready, according to a U.S. Census Bureau report.
Think back to the last time you went to a doctor’s office or medical facility. You likely were asked to name an emergency contact, and you probably didn’t hesitate to write down the name of your significant other, a family member, or a friend.
It makes sense to have someone medical personnel can get in touch with if something happens to you. After all, this can ensure your well-being.
But what about your financial well-being? If your financial institutions and advisors asked you to name a trusted contact, would you be willing to provide the name of someone they could reach out to if they were concerned about activity in your account and couldn’t reach you?
An overwhelming majority of older adults want to remain in their homes as they age. A survey by AARP found that 77% of adults 50 and older want to age in place. Other surveys have found that the percentage is even higher—nearly 90%.
It’s one thing to want to age in place. It’s another thing altogether to actually be able to make it work. That’s because there are several financial factors that can jeopardize adults’ ability to remain in their homes as long as possible. In fact, without adequate financial security and safeguards, living independently at home isn’t possible.
It’s important to understand the financial risks that can make it difficult to age in place and to take steps to reduce those risks.
One of the key needs that people have is to be autonomous. In other words, it’s human nature to want to feel independent and in control.
For those near or in retirement, financial independence is especially important. You need to have the resources to live comfortably and securely without a regular paycheck. You also need to protect those resources.
That requires putting systems and safeguards in place. To remain financially independent and in control, tackle these tasks sooner rather than later.
You know that you can expect to be at an increased risk of health issues as you age. However, what you might not realize is that aging puts you at a greater risk of another issue: financial exploitation.
In fact, the rate at which adults over the age of 60 can expect to experience financial exploitation—1 in 20—is higher than the incidence of many age-related diseases, according to research published in The Journals of Gerontology. And that’s likely an underestimate of the problem because, according to the report, “many older adults are unaware or unwilling to report exploitation.”
If you developed a disability or chronic condition that required long-term care, how would you pay for that care? Would you expect health insurance or Medicare to pay for it?
Unfortunately, you can’t count on either of those options to pay for ongoing care that you might need. Medicaid might cover the cost of long-term care services if you have very limited income or assets. Otherwise, if you need professional care at home, in an assisted living facility, or in a nursing home, you’ll have to pay for it.
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National Association of Insurance and Financial Advisors
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