unfortunately for most us we will outlive our money as women are living well beyond 100 what choices do we have? start smoking and eating junk when we turn 85 to decrease the liklihood :rolleyes:
http://www.nextavenue.org/save-enough-live-to-100/
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unfortunately for most us we will outlive our money as women are living well beyond 100 what choices do we have? start smoking and eating junk when we turn 85 to decrease the liklihood :rolleyes:
http://www.nextavenue.org/save-enough-live-to-100/
Think we need to visit nursing homes to see what the future might look like if we don't have our own money to ensure housing/services to keep us mobile in own residences. Some women will have families contributing to provide a paid nursing level of housing (if private home, there's no regulation under the Ministry of Health & Long Term Care) but those who do not have the means or family to help out can be put into a very basic living situation once age or health makes living at home an "un"option.
Just went through the nursing home/retirement home issue with an in-law who has entrusted us with their money issues.
Some round numbers for those who might be interested:
- You can find good independent living places (all meals supplied, room, laundry services, supervised activities) for about $3,100 per month. These are good if you are still mobile (even with a walker), able to bathe, clothe and use the bathroom by yourself. Most places have help with bathing, clothing and bathroom issues for an extra fee. The room is like a hotel room - small, but comfortable. You can come and go as you please, although you have to sign in and out just so that they know which residents are on site in case of an emergency.
- Some retirement residences have "memory units" - basically somewhat like the independent living, but in a secure area. Nobody leaves without a key. This is intended for people with mid stage Alzheimer or dementia patients. These give as much freedom as can be expected in these cases. The increased care bumps up the cost to $5,500 per month.
- Nursing home are pretty well the only choice for late-stage Alzheimer or dementia patients. These are pretty sterile and unattractive - like living in a hospital. Not nice places to live, nor to place someone. These are expensive, but if you have no money, there is government assistance available. But the good ones don't take assistance cases. You get what you pay for.
For goodness sake, if you or a loved one are approaching the time where living on your own is not an option, please look into the alternatives. Waiting for your world to come crashing down is about the worst thing that you can do. I've seen this first hand.
And also, if you are getting to the point of requiring care, consider the emotional and financial costs incurred by family if you are considering living with them. For some medical issues, the cost is simply too high. I won't get into details here, as each case is different.
So, in some ways, the goal of life is to get yourself to a net worth that once you need it, you can afford the above care for the rest of your life. This may be difficult to get to this point, but let me assure you, not getting there will not be pleasant.
Forewarned if forearmed.
Thanks - interesting article.
Silk
Brunt's post is very relevant and realistic, as always, but back to the original post, in my entire life I've only ever known my grandmother to make it to 100 and only required care in her 90s, after the second time she broke her hip. My mother may make it there as well, but all others seem to go in their 80s due to some health issue.
@brunt: Thank you for something to think about. I should probably call my mom and ask if she wants her name to go on any waiting lists. These lists likely have several years of waiting if you want to get into a specialized facility. So far, she shows no symptoms and genetically, mobility seems to be the only issue.
You bring up a good point with the waiting lists...Quote:
Originally Posted by sweet sparrow
My parents were quite forward thinking in this regard. They chose a place where they wanted to be, and got themselves on the waiting list. Sixteen years later, just after Dad died, Mom was able to get an apartment due to the fact that she changed to a smaller one after Dad was gone.
So, bottom line, simply choosing a place is not good enough. Find out how long the typical wait is, and get on the waiting list if appropriate.
I went to two retirement open houses this week not to do the tours but to get prices/information for the available suites. The cheapest studio unit (if available) is just over $3100 at one location (add almost $800 more if there is a second person in the unit) and can be $3300-3500 at other location (must have more than one size in that level). Both include weekly bathroom cleaning, floor cleaning and bedding laundry along with meals/snacks and some excursions, but not any phone/cable. One place charges a $300 fee for a/c unit in season. Any other laundry is extra fee service or the second location offers machines that residents can use themselves at no charge (which might be a problem for seniors who are not familiar with current washing machines if they are used to ones from the 80s or 90s). I did not see the do-it-yourself laundry area.
Good idea to put one's name on wait lists for preferred locales to reside. Never know how long the lists might be or how soon the desired unit comes available.
A discussion happened randomly between the folks during some contentious issue and it became obvious one parent wants to sell the place next spring and the other wants to stay at home. There are going to be $ ramifications if both do move and I know there could be a marital breakdown if the property sale occurs (lots of legal things from my perspective). Thus I am gathering information so I cannot be accused of making anything up when I let both parents know what market costs of living in a retirement home vs seniors apartments are at present.
And I thought discussing estate planning the spring was going to be a hot topic. That was just a warmup. Then there will be the going through all the things that are inside but have not been dealt with (not my stuff).
I can not eat food out of a can so that is my motivation to save for retirement!!
Back to the original post, there exists an option for elderly people that could be of interest. Unfortunately, they are dull.
In a word - annuities.
You hand over a chunk of cash, and based on your age, gender, minimum length payout and whether or not you want to have your payments tied to the rate of inflation, you receive a guaranteed monthly payment.
Upside:
- You don't have to worry about outliving your money. You receive the payment as long as you live.
- You don't have to worry about managing your own money.
Downside:
- If you die younger, then unless you have a guaranteed minimum payment length, the money disappears.
Annuities are often avoided due to the downside. But you can't have it both ways - payments guaranteed if you live a really, really long time, plus payments if you don't live a long time. It is really like reverse life insurance - it pays off not if you die, but if you live. The "lost" money of those who die younger are used to pay those who live longer - it does, after all, have to come from somewhere.
Some may not like not being able to leave something to the "kids", but your money really should be used to feed and house yourself first and foremost, rather than providing for a "jackpot" for the kids. If your biggest fear is running out of money by living a long time, then an annuity may be just the ticket.
Of course, ol' brunt's thoughts on this matter are at odds with most people. I honestly believe that handing over a windfall to children does more harm than good in the longer term. With my parents, the agreement has been now, and always has been that they are there to help when it matters, but not as a second income stream.
I fully expect that when I do Mom's will, my four brothers and myself will each receive a very modest sum of money (couple of thousand dollars). I have no problem with that - I greatly appreciate having been taught financial responsibility and self-reliance, thanks to Mom and Dad.
^^ The best thing that happened to my mother was an annuity. My father died unexpectedly when I was 14. My mom, 42, got a part time job. I found work at a signage factory, 30 hours a week at work, and 30 @ school. They got a special permit for me as I was under 16. I was very grateful. But it wasn't enough. My mother's planner put her into an annuity with the life insurance from my Dad. It helped Mom budget and survive, thanks to the steady payments, while the rest grew in investments for later. It was small, and she did out live it, but she also managed to get a lot of bang for her deposit. It can be a great financial tool to provide a steady income.
Too bad my Mom did not know about annuities. She put money into life insurance while she was working with a view to having money available for funeral costs. I don't know if she could make a change before the policy hits its anniversary date in two months.