How to Make Aging at Home Work

9 – Jul15 – How to Make Aging at Home Work – Blog

Aging at home, for some baby boomers, is something to look forward to during the golden years.

Boomer couples stand to spend more time with each other through this.

For others, a chance to enjoy the fun and memorable activities with family and friends.

Even the opportunity to be able to be creative in making one’s home an excellent avenue for the pursuit of recreational activities is definitely something to look forward to.

Of course, without taking the proper steps, aging at home may be challenging and expensive, considering the rise of health care costs in retirement today.

And this is why we’d like to share some simple yet practical guidelines for baby boomers to make the most out of the retirement in their homes:

Address Potential Health Care Expenses

We’ve mentioned that boomers aging in the comfort of their home can face high health care expenses about. Particularly for Medicare beneficiaries (as ironic as it may be), out-of-pocket health care costs (which will now term as “gaps,” such as coinsurance fees, copayments, and deductibles) can drain one’s nest egg quickly.

Here’s what a Commonwealth Fund report stated about the gaps issue:

  • 15 million Medicare beneficiaries spent 20% of their household income on insurance premiums and out-of-pocket health care costs last year.
  • At an average, the gaps can reach up to $3,024 per year,
  • The gaps can increase, especially for policyholders with financial issues or for those with chronic health problems.

Additionally, with more boomers saving less for the future (in an Insured Retirement Institute study, only 55% of the survey’s respondents claimed to have set aside funds for the golden years), the option to age in a home may be a struggle for most.

Boost Your Health and Financial Literacy

An important way to prepare for one’s future in his or her house is by taking the time to learn more about health instructions and financial management strategies.

Financial management, when done properly, allows one to have the right mindset in seeing the value of hard earned money. This mentality, when considered and prioritized, may result in a boomer committing to more ways to save – and even make – more money.

Health literacy, meanwhile, will help one to deal with potential health problems expected during the twilight years. Improving this necessary set of skills will help prevent medical emergencies.

According to the American Medical Association, individuals with poor health literacy skills are likely to:

  • Have more emergency room visits (some treatments may even be unnecessary)
  • Be less compliant in dealing with doctors and committing to a treatment plan
  • Have longer hospital confinements
  • Higher mortality rates

To improve on both health and financial literacy, consider consulting with insurance agents and financial experts on the best approach to incorporate in home retirement.

Get the Right Insurance Coverage

Finally, take the time to know and select a policy that will work best in addressing your retirement at home needs.

Long Term Care Insurance (LTCI) is one policy that you should highly consider. By dealing with the custodial care that most individuals age 65 years and above are expected to receive, an LTCI can help boomers pay for the expensive cost of care.

Focusing on home care, monthly costs can amount to:

  • Homemaker Services = $3,813
  • Home Health Aide Services = $3,861

The savings one can gain from an LTCI policy is indeed great!

Another crucial insurance policy to learn and purchase is a Medicare Supplement Insurance Plan.

Also known as Medigap, this insurance will help pay for the gaps (as mentioned above) that boomers encounter during retirement.

Aside from helping policyholders deal with the expensive gaps, flexible and practical solutions are also provided by Medicare Supplements. Here are some basic facts about Medicare Supplement plans:

With ten standardized Medigap Plans to choose from and the opportunity to compare Medicare Supplement costs among different private insurance companies, applicants gain the advantage to select a plan that will provide the best solution for their retirement needs.

To further maximize a Medigap application, consider purchasing a plan during the Medicare Supplement Insurance Open Enrollment Period (OEP). Buying a policy during the OEP will allow you a more convenient application process (since no medical underwriting is done).

We hope that the mentioned tips above will help you make aging at home work. And we highly suggest you to send us feedback on this topic. We need your input to create better content that will help you and other readers out, so please leave a comment below. We wish everyone the best!