Retirement and Nursing Homes

Planning ahead for where you will retire helps you avoid one of the biggest retirement planning mistakes. Creating a “plan B” helps you avoid one of the second-biggest mistakes in planning your retirement. 

Most Americans Want to Age in Place

Among older adults – those aged 50 and older – 8 out of 10 want to age in place, according to a survey by the American Association of Retired Persons (AARP). That means they want to continue to reside in the home they currently occupy. That plan may work out for some of them, but it may not. 

Assisted Living Centers, Nursing, and Retirement Homes

Pathfinder Retirement does not recommend one facility type over another. Your decision should suit your situation. Let’s consider the various options available.

• Retirement communities: These subdivisions or planned unit developments (PUDs) offer single-family homes or duplexes to older adults. The community provides lawn care, activity amenities, and sometimes personal shopping services.
• Retirement homes: A retirement home may resemble a condo complex, apartment building, or bungalow complex. The residents typically rent their abode, but the retirement home maintains the premises and yards and provides meal delivery, a central cafeteria, or both. The retirement home usually has an on-staff medical team. 
• Assisted living centers: Individuals of all ages reside in assisted living centers (ALCs). The population of an ALC may consist of older adults with health issues, younger adults with severe injuries or illnesses who need healthcare while they recover, or those with permanent disabilities who maintain some independence but need medical care or some assistance with day-to-day living activities. Some ALCs offer tiers of service, such as apartments, shared rooms, memory care, and Alzheimer’s disease wards.
• Nursing homes: The traditional term for a facility that cares for the permanently ill or injured, nursing homes now provide care for those who need temporary care. Older adults with serious health problems who cannot live alone may move into nursing homes, which provide medical staff and an on-site pharmacy.
• Long-term care (LTC) facilities: As the name implies, an LTC facility provides care for those who will need it for their lifetime. People in comatose or vegetative states often live in LTC facilities. The severely disabled who cannot care for themselves also reside in these hospitals. Individuals who incur an injury that precludes them from caring for themselves could also reside in an LTC facility. 

While long-term care facilities, nursing homes, retirement homes, and assisted living centers all have a doctor on staff, retirement homes rarely have a full medical staff or pharmacy. Choose an ALC, LTC, or nursing home if you or a loved one needs day-to-day medical care and activity assistance, such as help getting dressed or having meals provided.

Covering the Costs of Retirement and Nursing Facilities

At Pathfinder Retirement, we help our clients avoid pitfalls in their retirement planning. Avoid one of the common retirement planning mistakes of assuming you will retire at 65 or 70 years old. An illness or accident could mean you retire at 35 years old.

Purchasing long-term care insurance can help you pay for the extensive and extended nursing care you would need if that happened. You can use the money in your retirement savings to pay for these facilities, but if you need to enter one at an early age, your IRA or Roth account probably won’t have enough in it to cover your needs. Social Security payments and disability will cover some costs. However, we recommend the safest approach – a firm financial plan and a backup plan that ensures you can live well when you retire.

Contact Pathfinder Retirement to Build Your Plan

Leave nothing to chance. Paying for a retirement home or nursing home costs a lot of money. Most Americans plan to age in place but illness or injury forces 1.3 million older adults into some form of retirement or nursing home. Contact Pathfinder Retirement today to determine your needs and build a solid plan for your future.