A harsh reality of getting older is the potential that physical and mental limitations can impact individuals’ quality of life and their ability to continue living independently. When individuals fail to plan for these possibilities, decision-making may fall to their adult children, who may not grasp their parents’ emotional ties to a family home or the availability of funds that will be required to age in place or move. As the costs for long-term care continue to rise, families should consider planning early to meet the wishes and needs of aging family members and the financial costs of various living arrangements.
Staying at Home
Home is where the heart is and where most individuals feel most comfortable. Many social service agencies provide elderly homeowners with free transportation, meal delivery services and social activities. However, this sense of familiarity and normalcy may become unsafe and lonely. It also may require significant costs to maintain the home and provide one-on-one nursing care for the homeowner. Alternatively, family members may move in with aging parents to provide needed care, or they may move their parents into their homes. These options should be considered very carefully, as they will require significant investment of time, money and resources to achieve a healthy balance of physical and mental well-being for all parties.
55+ Active Communities
 Across the nation, there has been a boom in the development of communities targeted to individuals who have reached a particular age. These projects provide residents with the privacy of often spacious homes, services and activities to keep them active and connected with others. In addition to the initial purchase price of a home, residents are responsible for paying for the home’s upkeep and repairs. It is also common for these communities to charge residents monthly or quarterly fees to maintain common areas and subsidize amenities.
 One of the most significant challenges associated with 55-plus communities is that they do not provide medical or other support services that may be required for residents over age 80. Therefore, it is highly likely that residents will need to move once again as they continue to advance in age.
Independent Living Retirement Communities
Unlike age-restricted developments, independent-living retirement communities typically provide their residents with a broader range of assistive services, including housekeeping, dining and meal services and, in some instances, medical care. Of course, residents will likely pay extra for these services. Each resident also has a private living unit with safety features for an aging population, such as grab bars and emergency call buttons. Once individuals can no longer perform daily living activities or care for themselves, they may outgrow an independent living facility, and another move may become imminent.
Assisted Living Communities
 As its name implies, assisted living communities provide residents with round-the-clock staff to help them perform daily living activities and provide nursing and medical services. Residents typically live in private units, often without a full kitchen or laundry services. Fees may depend on the level of care provided. It is important to note that the costs of assisted living and nursing home arrangements continue to increase. According to Genworth’s most recent Cost of Care Survey, the national median cost of living in an assisted living facility is $64,200 per year. The median annual cost for a private room in a skilled nursing facility is $116,800.
Continuing Care Retirement Communities
Continuing care communities provide seniors with a full menu of living arrangements and nursing care options. When an individual is still active and able to live independently, they can reside in their private homes. However, as their needs change, they may move to assisted living and skilled nursing care facilities within the community. To ensure this continuum of care, the communities typically require residents to pay significant deposits that are neither refundable to the residents nor their family members.
Other Options
As lifespans increase, there is a threat that retirees may outlive their savings. One option for building a cushion of cash for future living expenses may be to sell the family home and rent an apartment close to needed facilities and services, such as grocery stores and doctors’ offices. Similarly, there is an emerging trend of co-living options for seniors to rent private or shared living spaces similar to college dorms. The costs vary depending on the location and amenities offered.
While no perfect living arrangement will apply equally to all seniors, individuals must plan for their future housing before retirement. There are various long-term care insurance options individuals may rely on to prepare for changing circumstances during their golden years.
About the Author: Brendan T. Hayes is a financial planner with Provenance Wealth Advisors (PWA), an Independent Registered Investment advisor affiliated with Berkowitz Pollack Brant Advisors + CPAs and a registered representative with PWA Securities, LLC (PWAS). He can be reached in the firm’s West Palm Beach, Fla., office at (561) 361-2001 or info@provwealth.com.
Provenance Wealth Advisors, 200 E. Las Olas Blvd., Nineteenth Floor, Ft. Lauderdale, FL 33301Â (954) 712-8888.
Brendan T. Hayes is a registered representative of and offers securities through PWA Securities, LLC, Member FINRA/SIPC.
 This material is being provided for information purposes only and is not a complete description or a recommendation. The information has been obtained from sources considered to be reliable, but we do not guarantee that the preceding material is accurate or complete. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct.
 Any opinions are those of the advisors of PWA and not necessarily those of PWA Securities, LLC. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of PWAS, we are not qualified to render advice on tax or legal matters. You should discuss any tax or legal matters with the appropriate professional. Prior to making any investment decision, please consult your financial advisor about your individual situation.
 Roth IRA owners must be 59½ or older and have held the IRA for five years before tax-free withdrawals are permitted. Additionally, each converted amount may be subject to its own five-year holding period. Converting a traditional IRA into a Roth IRA has tax implications. Investors should consult a tax advisor before deciding to do a conversion. Changes in tax laws may occur at any time and could have a substantial impact on each person’s situation. While we are familiar with the tax provisions presented herein, as financial advisors of PWA Securities, LLC, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.
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Posted on November 4, 2024