Are you a baby boomer that put your retirement plans on hold to help your parents during their golden years? You are not alone. Dubbed the “sandwich generation,” we are the first generation that is tasked with assisting our parents, while still helping our grown children after college. According to the 2010 U.S. Census Bureau, 4.4 million homes had three generations or more living in the same house. These statistics indicate a 15 percent increase from 2008, and that number continues to grow. Nursing homes and assisted living facilities offer round-the-clock care for elders and take the pressure off us, sandwich generation boomers. However, neither is cheap nor desirable.
There’s no place like home
Dorothy, from The Wizard of Oz, wasn’t the only person to realize that there is no place like home. According to an AARP survey, ninety percent of people over the age of 65 said that they want to stay in their homes throughout retirement. Retiring in place can be complicated and costly, but there are various resources available today to help make this dream a reality. An increasing number of in-home care providers coupled with new technology advancements for seniors, make it feasible to maintain independence and age in place.
Home monitoring technology
Modern technology can help bridge the gap between permanent in-home care and a middle ground solution to help seniors maintain their independence and dignity while staying safe in their homes. As we age, it is vital to have near-constant support. Having a smart home equipped with sensor devices and security systems can take the place of a vigilant support team and address many common challenges of aging.
“The number one technology you need in a home to help you stay in it for longer is a home security system,” says Laurie Orlov, founder of Aging in Place Technology Watch. “Second, there should be some form of social engagement technology in the home, such as a smart speaker, so people are not isolated. And these both depend on number three, which is having some form of high-speed Internet access into the home.”
If your loved one craves privacy, there are non-intrusive monitoring options. Companies such as Caregiver Smart Solutions provides discrete sensors for each space in the house. The system keeps track of your loved one’s movements throughout the day, showing when they eat, sleep, or move throughout the house. The system also provides reliable fall detection. Similar systems such as Forma Safe Home also monitor oven and stove usage. Aging In Place Technology Watch compiled a list of new technologies in the article Six new technologies for safety, health, and in-home monitoring.
Home care
Many seniors rely on non-paid home care from a family member, but situations typically change, requiring a professional caregiver. At that point, people rely on their savings accounts or long-term care insurance, if they have it. If your loved ones don’t have long-term care insurance, they may be able to get help paying for in-home care from the government. You may want to check the Eldercare Locator, a public service of the U.S. Administration on Aging that helps connect older adults to helpful services. They provide resources on home health care, and they are a gateway to Medicaid, which pays for home services.
Mobility concerns are paramount when ensuring the safety of loved ones. If they are having any trouble getting around the house or town, they should consider getting an electric chair or scooter. Medicare will sometimes cover these expenses. Volunteer escort services or low-cost public transportation may be available in the area for shopping trips or doctor visits. Again, contact Eldercare Locator for information about resources in the community.
Assistance programs and funding options
Aside from relying on portfolio investment accounts to fund home care, there may have program funding options.
If your loved ones are former service members, they may qualify for one of several V.A. programs to help with home care. Some of these include Aid and Attendance benefits, Veteran Directed Care, and Homemaker and Home Health Aide Care. Contact the regional V.A. benefits office for information.
If there are still funding concerns, you may want to investigate using home equity. Many seniors have a substantial amount of their wealth tied up in their home equity. Using a reverse mortgage may be used to access this equity to cover long-term care costs. A reverse mortgage is a home equity loan for people 62 and older that does not require borrowers to make regular payments. Instead, the loan becomes due when the borrower leaves the home. As with any financial decision, you should consult an expert to make sure it is a good fit for your situation.
Aging in place
Having conversations with your parents about the details required for aging in place can be difficult. No one likes to think about losing their independence. Hopefully, having this information available can help with the decision-making process.
For your reference, here is a list of additional resources for information on aging in place:
Eldercare Locator
1-800-677-1116 (toll-free)
Centers for Medicare & Medicaid Services
1-800-633-4227 (toll-free)
1-877-486-2048 (TTY/toll-free)
National Association of Area Agencies on Aging
1-202-872-0888
National Resource Center on Supportive Housing and Home Modifications
1-213-740-1364
Oregon Only: When the loan is due and payable, some or all of the equity in the property that is the subject of the reverse mortgage no longer belongs to borrowers, who may need to sell the home or otherwise repay the loan with interest from other proceeds. FAR may charge an origination fee, mortgage insurance premium, closing costs and servicing fees (added to the balance of the loan). The balance of the loan grows over time and FAR charges interest on the balance. Borrowers are responsible for paying property taxes, homeowner’s insurance, maintenance, and related taxes (which may be substantial). We do not establish an escrow account for disbursements of these payments. A set-aside account can be set up to pay taxes and insurance and may be required in some cases. Borrowers must occupy home as their primary residence and pay for ongoing maintenance; otherwise the loan becomes due and payable. The loan also becomes due and payable (and the property may be subject to a tax lien, other encumbrance, or foreclosure) when the last borrower, or eligible non-borrowing surviving spouse, dies, sells the home, permanently moves out, defaults on taxes, insurance payments, or maintenance, or does not otherwise comply with the loan terms. Interest is not tax-deductible until the loan is partially or fully repaid.
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This article is intended for general informational and educational purposes only, and should not be construed as financial or tax advice. For more information about whether a reverse mortgage may be right for you, you should consult an independent financial advisor. For tax advice, please consult a tax professional.
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