Yahoo Finance 3 Suprising Reasons Why ‘Aging in Place’ Is Cost Effective
Entering retirement and enjoying your golden years should be some of your life’s most relaxing and enjoyable years. You’ve worked hard for decades and saved enough to live the rest of your life comfortably.
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At the same time, aging can come with elevated costs including housing.
“Aging in place” is the concept wherein you stay in your home for as long as possible, as explained by the National Council on Aging (NCOA). According to a recent University of Michigan poll, 88% of people between the ages of 50 and 80 said it was very or somewhat important to them that they live in their homes as long as possible.
There are a lot of benefits to aging in place if you’re able to do it.
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1. Assisted Living and Nursing Homes Are Costly
Truehold laid out the average monthly costs for senior living:
Assisted Living Facility Costs: $4,500 per month.
Nursing Home With Semi-Private Room: $7,908 per month.
Nursing Home With Private Room: up to $9,034 per month.
2. You’ll Save Money If You’re Home Is Paid Off
If you’re a part of the 20% of Americans over the age of 65 who have paid off their homes, kudos to you. While you’ll still have to pay homeowner’s insurance, property tax, utilities and the cost of structural and property maintenance, you’ll likely still save a bundle each month when compared with assisted living and nursing home costs.
3. You Can Convert Home Equity Into Income
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Home equity is defined as the difference between what you owe on your mortgage (or any other debt against your home) and your home’s appraised value. If your home is completely paid off, or if you have very little left on your mortgage, that means you have a lot of equity in your home. You can borrow against this equity to cover costs such as paying for in-home help such as a home health aide, pay for regular living expenses, and also fund the cost of home modifications.
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This article originally appeared on GOBankingRates.com: 3 Suprising Reasons Why ‘Aging in Place’ Is Cost Effective
