How old are you? If you’re at least 50 years old, then you’re on your way to retirement. Perhaps you’re already thinking about aging in place—that is, you have no plans of moving out of state or your home anytime soon.
Are you financially prepared to do that? There are many ways to boost your retirement income. Besides your retirement accounts, pensions, and 401(k) plans, you can also sell a business in Utah.
But to make sure you have enough for your needs (and some of your wants), know how much it can potentially cost you to age in place in the Beehive State.
Here’s an Overview
There are no precise numbers when it comes to the total costs of aging in place, but you can have estimates. Genworth has an excellent calculator for that, based on the 2018 Cost of Care Survey.
Based on the website, homemaker services cost about $4,000 a month at the national level. Hiring a home health aide will mean spending around the same amount. By 2028, however, homemaker services will increase to $5,381. Adult day health care won’t be cheap either, going up by a thousand at $2,097.
In Utah, the cost of homemaker services was higher than the national average at $4,767 in 2018. So was a home health aide. Within a decade, both will climb to $6,406 and $6,277, respectively. Adult day health care, however, will be significantly cheaper than the national average at $1,434.
Cost of Housing and Home Ownership
Housing costs in Utah are not getting cheaper. According to Zillow, the home value in the state went up by almost 13% from 2017 to 2018. For 2019, it could increase by 6.1%. A typical home can have a price tag of more than $341,000.
This is disadvantageous for older adults who are thinking of moving to a different home within the state. They can consider remodeling their home instead to make them more suitable for their aging needs, but it might not be affordable, either.
Home Advisor calculator places the room remodeling costs in Salt Lake City at $28,000, although it can go as high as $43,000. If you are willing to skimp, you might spend less at $17,000 or even $15,000.
You also need to pay for property taxes. Fortunately, the state provides a 45% property tax exemption if you own the property, and it’s your primary residence. In other words, the country levies taxes on 55% of the home’s value only.
The cost of healthcare is another challenge for older adults, especially if they want to age in place. In a new report by Gallup, seniors withdrew a whopping $22 billion from their long-term savings to cover for healthcare spending. Meanwhile, over 7 million of the surveyed individuals said that they could not afford to pay for their prescribed medications.
According to the 2014 data by the National Bureau of Economic Research, the government subsidized about 55% of it through Medicaid, Medicare, and other government programs. Individuals, meanwhile, covered for 20% with out-of-pocket financing and 13% through private insurance.
Getting older in Utah costs money, but with proper planning, you can make it more affordable for you. There’s no better time to prepare for it, however, than today. The longer you wait, the more you put your retirement savings and income on the line.