Budgeting for Home Care and Modifications
Planning to age in place? Great! When you think of how you want to live as you get older, you may dream of remaining in your home. However, making this happen requires foresight, intentionality, and strategic financial planning. This financial guide will help you plan for your future so you feel a sense of comfort, control, and safety.
Assess your Current Finances
Before you can plan for future expenses, get a clear understanding of your current financial standing. Take the time to look into the comprehensive overview of your assets and liabilities.
- Income – Your consistent financial inflows from sources including pensions, Social Security, 401(k)s, IRAs, and annuities.
- Other Financial Assets – The value of your home and other properties, savings accounts, investments, and significant assets.
- Liabilities – Any outstanding debts, including your mortgage, credit card balances, or other loans.
- Current Expenses – Your regular expenses for utilities, medications, food, subscriptions, and other daily living costs.
This initial financial assessment provides the baseline for all your future planning.
Anticipate Future Expenses for Aging in Place
As you plan to age in place, you may incur additional expenses beyond your current budget. These generally fall into these areas:
- Home Care Services– These services are designed to support your daily needs and can range in price. For eligible individuals, Medicare often covers 100% of the costs for medically necessary, short-term skilled home health care. Medicaid and various private insurance plans may also offer coverage. Get home care quotes and review your insurance policy details to understand your benefits and any potential out-of-pocket expenses.
- Home Modifications and Renovations – Your home may need adjustments to keep it safe and accessible if physical abilities change. Angi outlines the average cost of making a home handicap accessible here. Common changes needed to allow safe aging in in place include:
- Walk-in shower
- Ramps
- Railings
- Widen doorways
- Improve lighting
- Home Maintenance, Housekeeping & Yard Work – Consider budgeting for services that help maintain your home and property, such as professional home maintenance, yard work, and housekeeping services, especially if you anticipate these tasks becoming more challenging in the future.
Legal & Strategic Planning for Older Adults
Financial planning for aging in place extends beyond just budgeting. It involves making your wishes known and legally solidifying your plan.
- Power of Attorney – Designate a trusted individual to act as your power of attorney for your finances. This ensures your finances can be managed if you’re unable to do so yourself.
- Will & Estate Plan – Ensure your will accurately reflect your wishes for your current and future circumstances. Reviewing and updating your estate plan regularly is important.
- Advance Directives – Discuss your healthcare wishes with your family and document them through advance directives, such as a living will and healthcare power of attorney.
Getting these legal matters sorted will help ensure your wishes are honored without any legal complications, providing peace of mind for both you and your loved ones.
The Value of Early Financial Planning
Achieving your aging-in-place goals is easier when you start planning early. Proactive planning offers immense benefits:
- Enhanced Control – You maintain greater control over your health decisions, financial resources, and the comfort of your home.
- Financial Flexibility – Spreading out potential home renovation costs over a longer period can make them more manageable.
- Peace of Mind – By proactively assessing your potential needs, understanding the associated costs, and creating a robust financial roadmap, you can enjoy your retirement years without the worry of unexpected expenses or stressful decisions.
- Optimal Support – Early planning allows you to research and choose the best home care services and modifications that truly align with your preferences, rather than making rushed choices during a crisis.
Ready to take the next step in financially planning for your future at home? Contact our Home Health Team for a personalized consultation. Learn more about Friendship Village Home Health Services here.