As many as 80% of the population aged 60 and older cannot afford long-term care or basic necessities such as food, reflecting the serious financial challenges older Americans face despite their overwhelming preference for aging in place.
This is according to reports by Phoenix-based National Public Radio (NPR) affiliated KJZZbased on data from the National Council on Aging (NCOA) and researchers at the University of Massachusetts Boston.
The analysis of the NCOA is titled “Increases in older Americans’ incomes and household assets still cannot support most during financial downturns.” According to the NPR report, “It looks at the financial condition of older Americans by comparing the income, home values, pensions and other savings of people age 60 and older with the costs of long-term care.”
It also used an online tool called the Older indexwhich illustrates how much money an older adult needs to live independently.
According to the data, the 80% share equates to approximately 27 million households. Some of this may have to do with a lack of real awareness of the costs of necessities in later life, as well as the limitations of a fixed income.
“I think the big problem has to do with education,” said Lauren Marinaro, a lawyer and board member of the National Academy of Senior Lawyerstold KJZZ. “And so when people sort of operate on the assumption that, [their] Medicare will take care of this, then they may not make certain plans [or] saving for long-term care.”
Certain people are also absolutely opposed to the idea of moving to a nursing home or other congregate care facility. This may stem from the idea that they will never need such care, she added.
But many older Americans eventually develop certain health complications. Data from NCOA puts the figure at almost 70% of people aged 65 and over with a health problem that requires special long-term care.
Americans may also be challenged by a negative shock to their wealth, often caused by health problems that sap their savings and place them in financially precarious situations. This is according to Sheryl Keeme, Executive Director of Neighbors who carean Arizona-based nonprofit organization that connects seniors with volunteers who help them stay in their homes.
“[E]Even though people prepare, unexpected health problems they haven’t prepared for when they arise [could] push them into a new category where they need help,” Keeme told the outlet.
There are a number of benefits to aging, especially as it relates to the cost of living compared to specialty care facilities. But recent data has highlighted the challenges some may face when it comes to feelings of social isolation and loneliness, as well as the need for adequate planning to support long-term goals for aging in place.
More than half of baby boomers have indicated that they have no desire to sell their home. There is also information suggesting that housebuilders are increasingly willing and able to explore the potential of large companies for those who want to renovate their homes and better respond to their changes in mobility, vision and hearing.
