Planning Ahead: Housing Our Aging Population

Our population is aging at a rapid pace. By the year 2034, the number of adults over age 65 will be greater than the number of children under age 18 for the first time in U.S. history, per the United States Census Bureau.

With the aging of baby boomers, many people are shifting their ideas about what family life and housing looks like for the future. Whether you hope to age in place or find alternative living accommodations, now’s the time to come up with a plan and prepare for that stage of life.

Here is a look at some of the different options you and your loved ones can consider to help make independent living possible.

Aging in Place

The Centers for Disease Control and Prevention defines aging in place as “the ability to live in one’s own home and community safely, independently, and comfortably, regardless of age, income, or ability level.”

The idea of aging in place for as long as possible is an attractive one especially if you have owned your home for several years. Maintaining daily life in the comfort of your home and community is often more cost effective than moving into an assisted living facility, which can cost on average $4,500 a month, according to the Genworth 2021 Cost of Care Survey.

While appealing, opting to stay in your home can also be more challenging than anticipated. Reduced mobility and transportation can be limiting and isolating. Stairs, traditional bathroom layouts, and narrow doorways and corridors can be cumbersome, requiring updates to accommodate your changing needs. Health issues may go unnoticed and regular activities can turn into one overextending themselves.

If you want to successfully age in place, there are resources that can help provide caregiving, transportation, housekeeping, physical activity, and more.

Multi-generational Living

In 2016, a record 64 million people in the U.S. lived with multiple generations under one roof, according to a Pew Research Center analysis of census data. The number of people living in multigenerational households has continued to rise as more parents are choosing to move in with their adult children to pool resources for an improved way to live. Instead of waiting for retirement or health conditions, they are coming together under one household to combat the challenges of aging and today’s economy.   

Before you start packing those moving boxes, it is important to have an open and honest conversation about expectations, boundaries, and any concerns with all adult members of the household. There are also important financial considerations to discuss concerning the impact of any future medical costs, or how you transfer money for any household expenses. If not done properly, there could potentially be tax consequences.

Talking through these issues will go a long way in setting you and your family up for success. When expectations are not discussed before family members move in together, it is often difficult to set those boundaries later.

Living Close By

Togetherness is a wonderful thing, but living with your adult children or other relatives may not be for you. There are many families who have opted to live close to each other, either in the same neighborhood or same town, just not under the same roof. Some have purchased a second home in the town where their children live; others have opted to purchase a larger home rather than downsize so their family has one place to gather.

Many of our clients share that they plan to buy a condo or other property that is easy to maintain and closer to the place where their children and grandchildren reside. This allows frequent visits without infringing on each other’s personal space.

Another popular option is a home with a garage apartment, a mother-in-law suite, or an accessory dwelling unit. For example, one of our advisors has been looking for a property that has space for her aging parents to settle down between retirement trips. Ideally, her parents can have their own living quarters and kitchen but will share the yard. This will enable her to easily check in on them when they are home.

Helping From Afar

While many families would jump at the opportunity to live together or nearby, it may not be feasible for various reasons. There may be considerations with your own children, such as their career or family dynamics at play, that could make it challenging to move near your family. If it’s not an option, there are ways to manage the distance.

Start by evaluating what your needs are and look at alternatives, like senior villages or co-housing units where you share communal spaces but have your own home. Some villages offer an annual fee where you can have coordinated medical care, home visits, and access to a social worker.

Discuss your plan and start talking with your family about any concerns and issues at hand. This should involve having an emergency contact and designating someone to receive your medical and financial information.

Most importantly, look for ways to stay connected with your family. Thanks to today’s technology, communicating with each other is easier than ever.

Considering the financial and emotional costs ahead of time can help put you and your family in a better position to make an informed decision rather than an emotional one when the time comes. As always, Resource Consulting Group is here to help guide your financial path. Please contact your advisor if you’d like to discuss ways to plan for your future.

Resource Consulting Group is a group comprised of investment professionals registered with Hightower Advisors, LLC, an SEC registered investment adviser. Some investment professionals may also be registered with Hightower Securities, LLC, member FINRA and SIPC. Advisory services are offered through Hightower Advisors, LLC. Securities are offered through Hightower Securities, LLC. All information referenced herein is from sources believed to be reliable. Resource Consulting Group and Hightower Advisors, LLC have not independently verified the accuracy or completeness of the information contained in this document. Resource Consulting Group and Hightower Advisors, LLC or any of its affiliates make no representations or warranties, express or implied, as to the accuracy or completeness of the information or for statements or errors or omissions, or results obtained from the use of this information. Resource Consulting Group and Hightower Advisors, LLC or any of its affiliates assume no liability for any action made or taken in reliance on or relating in any way to the information. This document and the materials contained herein were created for informational purposes only; the opinions expressed are solely those of the author(s), and do not represent those of Hightower Advisors, LLC or any of its affiliates. Resource Consulting Group and Hightower Advisors, LLC or any of its affiliates do not provide tax or legal advice. This material was not intended or written to be used or presented to any entity as tax or legal advice. Clients are urged to consult their tax and/or legal advisor for related questions.