Richard Hayman, 67, and his wife Carolyn are shelling out $110,000 to complete a strategic part of their retirement plan. They aren’t purchasing a fixed annuity. They’re making their 1978 Rockville, Maryland, tract house a place where they can age gracefully.
When we plan for retirement, we typically plan for financial stability, adequate health insurance, and safeguarding our estate. We may even plan for assisted living costs on down the road. But that doesn’t always mean planning for a move to an assisted living community. Some would rather stay in their own home. Enter a new retirement plan – home renovation.
As a recent article in Bloomberg highlights, assisted living costs are on the rise. Consequently, many individuals nearing retirement are opting to renovate their homes to avoid increased assisted-care costs. If you are heading towards retirement, it is vital to your financial health and the stability of your estate that you consider “Remodeling as Retirement Planning.” Substantially remodeling your home to further accommodate an aging body may cost a pretty-penny up front, but it may pale in comparison to the yearly cost of a nursing home.
According to a MetLife Mature Market Institute study, the US National Average for yearly nursing home costs is just over $75,000. Accordingly, a relatively simple $10,000 renovation to your home might provide you with extra years of independent living, and save you thousands in assisted living costs along the way.
Think remodeling your whole home could cost too much? Consider simple changes like removing area rugs to reduce the risk of tripping. Or even simply rearranging your kitchen can help you avoid falls due to grabbing items from hard-to-reach areas. Whether you are looking to do a complete renovation or basic changes, consult the aforementioned article for more renovation tips and tricks.