Housing for Retirement
The first of the baby boomers turned 65 in 2011, and according to the Pew Research Center, every single day from that point on through 2030 about 10,000 people will become eligible for Social Security. To put this into perspective, the baby boomers account for more than a quarter of the U.S. population. Many of those people will not be able to stay in their homes, needing either to downsize or move somewhere where they can receive assistance with daily tasks.
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Senior Housing
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Short of a nursing home, housing options for seniors abound. From age-restricted retirement communities and senior-only apartments to granny flats in children's homes, seniors can find options that suit their lifestyle, budget and health condition. Some age-restricted communities are for seniors as young as 55; others start at age 61. Some are rentals; other are for purchase.
Nursing Homes
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Nursing homes are not necessarily what they used to be. Today there are many different types of homes, of varying size, offering varied services and lifestyles. The Eden Alternative is available in at least 300 communities nationwide. This is a nursing home organized with the seniors themselves making key decisions in the operation of the home and incorporating more "normal" aspects of living, like gardening and pet care, into the operation of the facility. Visiting nursing homes you may have an interest in while you still live at home is one of the smartest steps you can take in finding a place that best suits your needs, according to the U.S. Department of Health and Human Services.
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Reverse Mortgage
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A reverse mortgage is a home loan available to seniors age 62 and older. It does not require good credit or income to qualify; you just need to own your home lien-free or with a mortgage that leaves you with more than 50 percent equity. This loan does not require repayment until you die or move out of your home and neither you nor your heirs are personally liable for repayment. Instead, the house itself repays the loan through its sale. Mortgage insurance covers the lender for any shortfall in home appreciation. The loan proceeds can be used for any purpose. Combined with programs like meals-on-wheels, "friendly visitor" programs and perhaps part-time in-home care as you become more frail, the reverse mortgage might allow you to stay in your home most of senior years.
Take in a Boarder
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If you are still in good condition and also have a retirement income but need to stretch your dollars, consider taking in a roommate or boarder. A college student may not only want to rent a bedroom but would be interested in a reduced rent in exchange for helping with meals or home maintenance. Another senior may provide good company.
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References
- Pew Research Center Publications; Baby Boomers Approach Age 65 Glumly; D'Vera Cohn and Paul Taylor; December, 2010
- Senior Resource: Housing Choices
- PBS.org: The Eden Alternative
- Medicare: Guide to Choosing a Nursing Home (p. 26)
- The Federal Reserve Board; Reversing the Trend -- The Recent Expansion of the Reverse Mortgage Market; Hui Shan; 2009
Resources
- Photo Credit elderly lady image by pixelcarpenter from Fotolia.com
