There are several benefits of aging in place, including that it's cost-effective. Discover the cost of aging in place and how it compares to other living facilities.
If you’d rather live at home later in life than move to a nursing home or assisted living facility, you’re in the majority—77% of adults age 50 and up agree with you. But like many in the same age group, you may be wondering—can you afford aging in place?
In reality, the cost of aging in place can vary greatly depending on what resources exist in your community, the design and current condition of your home, and the type and amount of services you need to live safely and comfortably. Before setting any plans in stone, it’s wise to consider how aging in place may fit into your finances—and what aging in place resources are available to help.
While there isn’t a simple apples-to-apples comparison of aging in place vs assisted living costs, there are some relevant data points that can help provide a baseline.
According to 2021 figures, these are the average monthly costs for senior living:
So how do these costs compare to those who stay at home? While the following isn’t a full financial picture, the same survey shows average monthly costs for those who require similar care services at home, based on 40 hours per week usage:
As you can see, there are some significant differences. But senior care is just one potential cost. Alongside it, you’ll also need to factor in other expenses in order to experience the many benefits of aging in place.
The monthly price tag for assisted living typically covers far more than just rent. In a senior care facility, you’d be paying one big bill for:
At home, you’ll still need to pay for many of these same expenses—just not as one single check paid to the care facility. Let’s break down how these costs translate to an age-in-place plan.
Retiring as a homeowner with a paid-off mortgage is a goal for many, but in reality,
only about one-fifth of adults over the age of 65 own their homes outright.
For most older adults, monthly housing expenses will include:
The cost of home modifications, as well as repairs and upkeep, will depend on your home’s current condition and design. Age-related modifications may focus on factors such as:
Common aging in place home modifications include:
If you live in an older home, the above renovations could come in on the higher end of a $10,000 to $100,000 estimated range for age-related remodeling. However, there are many lower cost ways to make a home more accessible. To meet your needs with a smaller budget, you can:
What amount of hands-on help will you need to continue living at home? Consider:
Estimating your cost requires pricing out local providers and determining how many hours per day, week, or month, you’ll need each service.
Family, friends, and neighbors willing to offer rides are a first choice for many, but price out options near you to provide the greatest range of independence and flexibility.
Depending on what’s available in your county or neighborhood, you may be able to choose from:
Being involved, learning, and socializing are all critical to physical, cognitive, and emotional health for seniors. Consider how to meet those needs in a way that fits your interests and come up with a budget that includes line items such as:
While at-home services can be arranged easily nowadays, rising prices mean that home improvements and other costs related to aging in place require careful financial planning. That’s why home equity is a vital resource for those seeking to fund aging in place.
You can unlock your equity without leaving your home through Truehold's sale-leaseback. We’ll pay a competitive price and rent your home back to you for as long as you choose to renew the lease.
In addition to converting equity to cash to cover aging in place needs, you can reduce stress and monthly housing expenses. Truehold will cover property tax, homeowners liability insurance, major repairs, and covered maintenance.
Find out if a sale-leaseback is a good fit for your needs. Contact us today and a Truehold Advisor will connect with you to review your goals and unique situation with no obligation.
AARP. New AARP Survey Reveals Older Adults Want to Age in Place. https://www.aarp.org/home-family/your-home/info-2021/home-and-community-preferences-survey.html
Genworth. Cost of Care Survey. https://www.genworth.com/aging-and-you/finances/cost-of-care.html
Aging In Place. Aging In Place Vs. Assisted Living. https://aginginplace.org/aging-in-place-vs-assisted-living/
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