Lifestages: The Final Frontier

You have a lovely retirement mapped.  But after the travel, second careers and volunteerism, when you are feeling your age, what then? What does that phase of your life look like? 

The final years are a challenging phase for planning.  Our Greatest Generation are in this stage.  This generation came through the Great Depression, World War II and the boom in the 1950s.  Their possessions have been hard earned and their assets represent a lifetime of accomplishment. They want to stay in their homes.

Reality is dramatically different.  Our loved ones may not mention that the stress of maintaining that house is starting to take a toll on their health.  They hide their mistakes, afraid people will say they have dementia.  As judgment becomes more clouded, they may fall prey to scams. 

But the thought of moving is overwhelming.  Sorting and disposing of memories can seem insurmountable. 

Often a fall or sudden illness will start a downhill spiral that leads to a need for skilled nursing.  At this point the elder person and caregivers are in panic mode.  Beds in good nursing facilities can be scarce.  Medicare has an online guide with a star rating that can help you choose, keep in mind the perfect choice may have a waiting list.

When it comes to your own planning, consider this your call to action:

  • Grant a Power of Attorney.  A loved one, friend or even trusted advisor who is empowered to act for you.  Try not to choose your spouse or sibling, as they may reach this stage before you do. Consider their stress in dealing with your legal and financial matters. Talk with your legal advisor for guidance. 
  • Evaluate your assets.  Are you able to pay out of pocket or do you need long term care insurance?  Eldercare costs are inflating between 4% and 5% per year.  A personal care home today can cost $4,000 per month, skilled nursing $8,000.  Work with your financial advisor to run some projections. 
  • Consider a Continuing Care Retirement Community (CCRC).  Visit a few of these communities.  They offer independent living that transitions to personal care, memory care and finally skilled nursing if needed.  A CCRC offers activities, transportation and a sense of community.  There is typically a buy-in, which may be refundable.  Some communities maintain your admission even if you outlive your assets. 
  • Would you prefer to stay in your home as you age? Realize that you may have to pay full-time staff. Hire only from insured, bonded agencies that specialize in elder care.  Considering that most of your hours may be spent with the staff, be sure you like and trust them. 

These are tough decisions. Face them head-on and you will feel better for it.  As a gentlemen friend of ours put it when he moved into a CCRC.  “It’s the best gift I could give my kids.”

Additional Resources:

Medicare Nursing Home Ratings Guide: https://www.medicare.gov/nursinghomecompare/search.html

Just the facts ma’am.  Sobering look at the landscape of long term care: http://www.morningstar.com/articles/823957/75-mustknow-statistics-about-longterm-care.html

The MIT AgeLab and TransAmerica have compiled a comprehensive guide wealth preservation in elder and dementia planning: https://www.transamerica.com/images/dementia-caregivers-guide_tcm73-50147.pdf

 

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at [email protected].

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2023 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

our thoughts on
2024 Cost-of-Living Adjustments for Retirement Plans and IRAs
Dumb Money: An Honest Review of the Film Adaptation of the GameStop Short Squeeze
Incentive Compensation for Construction Industry Employers
Erroneous IRS Form 8955-SSA Penalty Notices
IRS Extends Roth Catch-Up Contribution Effective Date
How Safe Are Your 401(k) Assets?
Register to receive our weekly newsletter with our most recent columns and insights.
Have a question? Ask us!

We’d love to hear from you. Drop us a note, and we’ll respond to you as quickly as possible.

Ask us
contact us
Pittsburgh

This site uses cookies to ensure that we give you the best user experience. Cookies assist in navigation, analyzing traffic and in our marketing efforts as described in our Privacy Policy.

×