Aging In Place - A Luxury You Can’t Afford
Many seniors are not able to afford the high costs of Independent and Assisted Living facilities, thinking it will be more cost effective to age in place. Think again. In a recent article from Market Watch the cost of home health care assistance may now exceed the costs of institutional living. And both options are out of reach for most Americans.
“The cost of long-term-care services increased across the board with cost hikes in the range of 1% to 10%, according to the 2023 Genworth Cost of Care survey. Inflation was the top factor contributing to cost increases for assisted living facilities, while a shortage of skilled workers was the top contributing factor for homecare services and nursing homes, the survey said.
The areas of care that saw the biggest jump in costs were in the costs of a home health aide, which includes “hands-on” personal assistance with activities such as bathing, dressing, and eating. The price tag has increased to an annual median cost of $75,500, up 10% from 2022 and up 22.2% from 2021, Genworth said. (That’s based on 44 hours a week for 52 weeks.) The median cost of a home health aide runs about $33 an hour, according to the survey.”
Think You Will Move in With the Kids?
Relying on family to provide care has given rise to an increase in multi-generational living. ADU’s, kids moving home, multi-generational housing are all viable options and can be effective ways of providing care especially if financial and care arrangements are documented in a family care plan. However, when aging adults move in with their millennial children because seniors didn’t anticipate retirement costs, it can lead to resentment. The article in Fortune explores the issues with the current increase in reverse boomerangs.