5 Surprising Ways Aging in Place Saves You Thousands
Aging in place has its benefits. You can stay in the home you’re accustomed to. You’re close to friends, family, community, doctors, and caregivers. Plus, you don’t have to worry about the headaches and stresses of relocating.
For all those reasons, aging in place is a popular choice for many retirees. How many? According to AARP, 75% of adults aged 50 and older want to remain in their homes and communities as they age.
Remaining in your current home during retirement also presents meaningful financial advantages. Beyond avoiding the considerable expenses associated with a retirement community — which often range from $6,200 to $10,800 per month —there are several less apparent cost savings.
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From everyday grocery savings to reduced tax burdens, here are five surprising ways aging in place can protect your nest egg.
(Read our companion story: 5 Unexpected Costs of Aging in Place — Even With No Mortgage)
5 unexpected aging in place savings
(Image credit: Getty Images)
1. Cheaper groceries
Eating out can add up, and if you relocate to a retirement community or a new location, you may spend more on meals than if you age in place.
That’s because living in a retirement community or assisted living facility usually comes with prepared meals and a set meal plan. Sure, standard meals may be included, but extra meals or guest dining aren’t, which can quickly add up. If you live at home, you can cook for yourself, buy food on sale, shop in bulk, and find other ways to save on your groceries.
As for retirees who relocate to a new area, they may spend more money dining out, trying new restaurants in the town as they get a feel for the new neighborhood.
2. Flexible healthcare
Aging in place allows you to control your support costs, saving you serious cash compared to an assisted living facility or nursing home. Instead of paying a steep, flat monthly fee regardless of how much care you actually use, you only pay for what you need. If you require help for a couple of weeks after a fall, you can hire an aide for just that timeframe. If you only need assistance with errands for a few hours a month, you pay solely for those hours.
A non-medical home care aide generally costs $30 to $35 per hour (or $300 to $350 a month) for ten hours of help. Compare that to a full-time facility, which runs $6,200 or more per month, and the savings are substantial. Best of all, the money you aren’t spending on a facility can stay invested and continue to grow.
3. Property tax savings
Setting down roots does mean something, even if the younger generations are quick to switch jobs and cut ties. And that loyalty is rewarded for homeowners who stay put in the form of tax breaks that you won’t get if you relocate in retirement.
Most states and towns offer some sort of property tax break for residents over the age of 65, whether it’s a homestead exemption, senior property tax exemption or a tax freeze. You won’t get those immediately if you move to a new home, even if you are over the age of 65. Typically, you must own and live in the property as your primary residence for one to three years before you’re eligible.
Staying put means you can collect as much as three years of tax savings, which could amount to hundreds, if not thousands, of dollars in savings.
4. Loyalty and senior discounts
Loyalty pays off, and that’s particularly true for retirees who stay put as they age. By remaining in your long-time home, you can get discounts on everything from utility bills to property insurance. Discounts that you might not get if you relocate.
Utility companies tend to offer rate reductions or senior credits to long-term residents, while staying in the same home enables you to keep your policy discounts with your insurer. Staying put also protects you from taking on a brand-new policy at today’s inflated market rates. That’s good news since homeowner’s premiums have jumped nearly 47% nationally over the last five years alone, according to LendingTree.
If you relocate to an area prone to severe weather or natural disasters, like hurricanes in Florida, your homeowners’ insurance premiums could soar even higher, wiping out any expected savings from moving.
5. Free support networks
Whether it’s close friends, long-time neighbors, or family living nearby, an established support network becomes invaluable as you age, especially if you decide to stop driving. By staying in your home, you can rely on informal favors, like a neighbor driving you to a doctor’s appointment or a friend picking up your prescriptions.
If you relocate, a simple trip to the pharmacy or grocery store can easily run $20 or more for a rideshare if you don’t have a car or a network of similar help. Relying on private transit services for every errand can quickly add up to hundreds of dollars a month.
Add savings to the list
(Image credit: Getty Images)
There is a long list of reasons why people choose to age in place, and saving money isn’t typically top of mind. But it is a major added perk, one retirees can comfortably add to their list.
After all, whether it’s groceries, home maintenance, insurance, property taxes or support, aging in place offers real savings that go far beyond just avoiding the steep costs of an assisted living facility.
