ST. CROIX INSIGHTS
Planning for Aging in Place
People in every country throughout the world are living longer on average. However, the U.S. stands out with the largest healthspan-lifespan gap and the greatest noncommunicable disease burden. In other words, many Americans live a long time, but they spend more years dealing with serious health problems near the end of life. On top of that, the U.S. has especially high rates of long-lasting illnesses like heart disease, diabetes, and cancer compared to other countries. This also means that living longer costs more money. Financial planning is more important now than ever.
The Costs of Growing Old
Here are some noteworthy monthly long-term care costs, according to a 2024 report by the American Seniors Housing Association (ASHA):
- Independent living = $4,126
- Assisted living = $6,422
- Memory care = $8,505
Keep in mind that these estimates don’t include medical costs or care outside of facilities, such as doctor visits or prescriptions. They also leave out personal expenses like internet, cell phone, clothing, hygiene items, transportation, or entertainment.
From both personal and professional experience, I can tell you the numbers above are on the low end. My own family was paying nearly $20,000 per month for my mom’s care, and I have clients facing similar expenses. The true cost of care, especially when it’s needed around the clock, often comes as a shock to families.
According to the latest data from the U.S. Census Bureau, the average annual income in retirement is $75,254, or $6,274 per month. Comparing all these numbers forces one to wonder: How do Americans afford to get old?
Aging in Place
For many, the answer isn’t moving into a facility at all, but finding ways to stay at home. Aging in place refers to staying in your own home (or family home) for as long as possible. Your home may need renovations or adjustments, for example, the installation of a wheelchair ramp or swapping to non-slip flooring, but the goal is to maintain independence and comfort in familiar surroundings.
According to the ASHA report, living in a house as you age looks cheaper on paper than moving into a senior community, but that ignores hidden costs (maintenance, taxes, insurance, repairs, etc.). If home health care is needed, costs can quickly match or exceed assisted living and memory care. The report states that the standard number of care hours is 44 hours per week or $5,808 per month, which would nearly equal the cost of assisted living care without consideration of home costs.
How to Afford to Age in Place
If asked, I would imagine that most people would prefer to age in a home they are comfortable in rather than live in a senior facility. But making that possible requires both planning and money. Here are some things to consider:
- Downsizing: Selling a larger home and moving into a smaller, one-level home or condo can free up equity to help pay for long-term care needs. I believe people underestimate the number of stairs they have in their homes and even the ability to walk up and down even one flight of stairs as they age. I’ve seen this first hand where even trying to overcome a couple of inches with your step without losing your balance is a challenge.
- Long-term care insurance: Some policies (or hybrid versions) may cover aging-in-place expenses like home modifications, meal delivery, skilled nursing care, and even reimbursements for family caregivers. Head over here to read more on the subject: Long-Term Care: The Plan You Can’t Afford to Ignore.
- Health coverage: If long-term care isn’t required, health insurance, Medicare, and Medigap can help with traditional medical needs such as prescriptions.
- Health Savings Accounts (HSAs): Building a sizeable HSA can be a powerful tool in later years, thanks to its triple tax advantages: contributions are pre-tax, funds grow tax-free, and withdrawals are tax-free for qualified medical expenses.
- Multi-generational living: Last, but certainly not least, sharing a home with family is another way to reduce costs and build in caregiving support.
Multi-generational Living
Multi-generational living is on the rise in the U.S, especially since the COVID-19 pandemic. While the majority of multi-generational living sees adult children moving back into their parents’ homes, 18% of adults 65 or older also live in a multi-generational home, according to Pew Research.
The benefits include help with caregiving and pooling financial resources. It can also be rewarding to be surrounded by family. Still, it’s not without challenges. About 23% of people in multigenerational households report finding it stressful.
Moving mom and dad into your home, or planning to eventually move into your children’s home, needs financial planning just as moving into a facility would. On average, caregivers spend 26% of their personal income on caregiving expenses. One in three reach into their personal savings to cover costs, 12% take out a loan or borrow from family or friends, and some end up running up credit card debt.
Many adult children welcome the idea of having mom or dad move in when the time comes, but caregiver burnout is real—especially if these caregivers are also still taking care of dependent children of their own (known as the Sandwich Generation). Studies show that 60% of caregivers experience burnout symptoms.
To avoid strain, families should plan ahead:
- Sit down with loved ones to discuss what an ideal retirement and living situation looks like.
- Account for inflation—it will make both care and everyday purchases more expensive.
- Make a list of assets available if needed, such as LTC insurance, annuities, HSAs, or VA benefits.
- Explore respite care or adult day programs as relief for family caregivers.
One idea that was shared with me recently was to encourage parents to write a letter to their future selves. A letter to acknowledge the natural signs of aging when they appear, even if they’re having trouble accepting them. It’s human nature to deny decline and say, “I’m fine.” But sometimes, adult children see the truth before their parents do. That letter can help ease difficult conversations and mark the moment when the roles begin to shift—when it’s time for the kids to become the caregivers.
Next steps
Working with a financial professional can make all the difference. Whether you’re preparing for your own future care or helping parents plan, I can provide an unbiased perspective. I know this not just from my work as an advisor, but from personal experience. I helped my own mother age in place, and I understand both the financial and emotional sides of that journey.
Together, we’ll review your current assets, estimate future needs, and create a roadmap that gives you clarity and confidence.
Aging is inevitable. But with thoughtful planning, it doesn’t have to feel overwhelming—it can be a season of comfort, security, and peace of mind. Reach out today to plan for your golden years.
People in every country throughout the world are living longer on average. However, the U.S. stands out with the largest healthspan-lifespan gap and the greatest noncommunicable disease burden. In other words, many Americans live a long time, but they spend more years dealing with serious health problems near the end of life. On top of that, the U.S. has especially high rates of long-lasting illnesses like heart disease, diabetes, and cancer compared to other countries. This also means that living longer costs more money. Financial planning is more important now than ever.
The Costs of Growing Old
Here are some noteworthy monthly long-term care costs, according to a 2024 report by the American Seniors Housing Association (ASHA):
- Independent living = $4,126
- Assisted living = $6,422
- Memory care = $8,505
Keep in mind that these estimates don’t include medical costs or care outside of facilities, such as doctor visits or prescriptions. They also leave out personal expenses like internet, cell phone, clothing, hygiene items, transportation, or entertainment.
From both personal and professional experience, I can tell you the numbers above are on the low end. My own family was paying nearly $20,000 per month for my mom’s care, and I have clients facing similar expenses. The true cost of care, especially when it’s needed around the clock, often comes as a shock to families.
According to the latest data from the U.S. Census Bureau, the average annual income in retirement is $75,254, or $6,274 per month. Comparing all these numbers forces one to wonder: How do Americans afford to get old?
Aging in Place
For many, the answer isn’t moving into a facility at all, but finding ways to stay at home. Aging in place refers to staying in your own home (or family home) for as long as possible. Your home may need renovations or adjustments, for example, the installation of a wheelchair ramp or swapping to non-slip flooring, but the goal is to maintain independence and comfort in familiar surroundings.
According to the ASHA report, living in a house as you age looks cheaper on paper than moving into a senior community, but that ignores hidden costs (maintenance, taxes, insurance, repairs, etc.). If home health care is needed, costs can quickly match or exceed assisted living and memory care. The report states that the standard number of care hours is 44 hours per week or $5,808 per month, which would nearly equal the cost of assisted living care without consideration of home costs.
How to Afford to Age in Place
If asked, I would imagine that most people would prefer to age in a home they are comfortable in rather than live in a senior facility. But making that possible requires both planning and money. Here are some things to consider:
- Downsizing: Selling a larger home and moving into a smaller, one-level home or condo can free up equity to help pay for long-term care needs. I believe people underestimate the number of stairs they have in their homes and even the ability to walk up and down even one flight of stairs as they age. I’ve seen this first hand where even trying to overcome a couple of inches with your step without losing your balance is a challenge.
- Long-term care insurance: Some policies (or hybrid versions) may cover aging-in-place expenses like home modifications, meal delivery, skilled nursing care, and even reimbursements for family caregivers. Head over here to read more on the subject: Long-Term Care: The Plan You Can’t Afford to Ignore.
- Health coverage: If long-term care isn’t required, health insurance, Medicare, and Medigap can help with traditional medical needs such as prescriptions.
- Health Savings Accounts (HSAs): Building a sizeable HSA can be a powerful tool in later years, thanks to its triple tax advantages: contributions are pre-tax, funds grow tax-free, and withdrawals are tax-free for qualified medical expenses.
- Multi-generational living: Last, but certainly not least, sharing a home with family is another way to reduce costs and build in caregiving support.
Multi-generational Living
Multi-generational living is on the rise in the U.S, especially since the COVID-19 pandemic. While the majority of multi-generational living sees adult children moving back into their parents’ homes, 18% of adults 65 or older also live in a multi-generational home, according to Pew Research.
The benefits include help with caregiving and pooling financial resources. It can also be rewarding to be surrounded by family. Still, it’s not without challenges. About 23% of people in multigenerational households report finding it stressful.
Moving mom and dad into your home, or planning to eventually move into your children’s home, needs financial planning just as moving into a facility would. On average, caregivers spend 26% of their personal income on caregiving expenses. One in three reach into their personal savings to cover costs, 12% take out a loan or borrow from family or friends, and some end up running up credit card debt.
Many adult children welcome the idea of having mom or dad move in when the time comes, but caregiver burnout is real—especially if these caregivers are also still taking care of dependent children of their own (known as the Sandwich Generation). Studies show that 60% of caregivers experience burnout symptoms.
To avoid strain, families should plan ahead:
- Sit down with loved ones to discuss what an ideal retirement and living situation looks like.
- Account for inflation—it will make both care and everyday purchases more expensive.
- Make a list of assets available if needed, such as LTC insurance, annuities, HSAs, or VA benefits.
- Explore respite care or adult day programs as relief for family caregivers.
One idea that was shared with me recently was to encourage parents to write a letter to their future selves. A letter to acknowledge the natural signs of aging when they appear, even if they’re having trouble accepting them. It’s human nature to deny decline and say, “I’m fine.” But sometimes, adult children see the truth before their parents do. That letter can help ease difficult conversations and mark the moment when the roles begin to shift—when it’s time for the kids to become the caregivers.
Next steps
Working with a financial professional can make all the difference. Whether you’re preparing for your own future care or helping parents plan, I can provide an unbiased perspective. I know this not just from my work as an advisor, but from personal experience. I helped my own mother age in place, and I understand both the financial and emotional sides of that journey.
Together, we’ll review your current assets, estimate future needs, and create a roadmap that gives you clarity and confidence.
Aging is inevitable. But with thoughtful planning, it doesn’t have to feel overwhelming—it can be a season of comfort, security, and peace of mind. Reach out today to plan for your golden years.