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Aging in Place: Funding In-Home Care Services

As we celebrate Older Americans Month (OAM) this May, we’re taking time to honor the invaluable contributions of older Americans, shed light on aging trends, and reaffirm our commitment to serving the elders in our communities. Amidst these observations, one notable trend stands out: the increasing desire among retirees to “age in place” – to continue living at home well into their later years.

With 88% of Americans between the ages of 50-80 citing the importance of remaining at home,1 retirees are increasingly opting to cherish the comfort and familiarity of their homes as they age. But the reality is that doing so may come with its share of challenges: second-story bedrooms, stepped entryways, narrow doorways, and other issues have the potential to make everyday living a challenge for older adults.

Fortunately, as the “Aging in Place” movement continues to gain momentum, today’s seniors have a plethora of service options to support their independence and well-being while remaining in the comfort of their own homes.

The Spectrum of Care
Home care offers retirees a vast array of services, from personal care and companionship to medical assistance, all aimed at maximizing quality of life. While the following categories are some examples of in-home care services, the range of services are virtually limitless – and can be tailored to specific situations.

  • Personal Care
    A personal caregiver provides hands-on assistance with activities of daily living (ADLs) to enable individuals to continue living in their own homes rather than moving to a care facility. These services encompass tasks such as bathing, dressing, grooming, and medication reminders. They are particularly valuable for seniors needing support to maintain their hygiene and overall well-being.
  • Homemaker Services
    Homemaker services encompass a variety of tasks aimed at fostering a safe, tidy, and cozy living space. These may include grocery shopping, meal preparation, laundry, cleaning, organization, and ensuring the home is safe and secure. For seniors who desire to age in place but find themselves struggling with household chores, homemaker services could offer a valuable support system.
  • Skilled Nursing Care
    Skilled nursing care provides a comprehensive range of medical services by licensed professionals, offering both short-term and long-term solutions tailored to individual needs. Essential for seniors with complex medical conditions requiring continuous attention, skilled nursing care can support recovery following illness, injury, or hospitalization. These services can also aid in the managing of chronic health issues, disabilities, or special needs.
  • Physical Therapy and Rehabilitation
    In-home physical therapy and rehabilitation services offer tailored exercises and treatments for individuals recovering from injury, illness, or medical procedures. Skilled therapists guide patients in improving mobility, strength, flexibility, balance, and coordination, all within the comfort of their own homes. These services are designed to prioritize physical wellbeing, ultimately enhancing an independent lifestyle.

The Cost of In-Home Care Services
Now that we’ve covered some of the various in-home care services available, you may be wondering, “How much do these services cost?” The short answer is, “It depends.”

As of 2023, the median hourly cost for in-home care was $30, with state averages ranging from $21 to $50 per hour.2 On an annual cost scale, home health aide expenses soared 10% from 2022 to 2023, averaging $75,500, while assisted living facility expenses rose by 1.4% to an average of $64,200 per year.3 Ka-ching!

Funding In-Home Care Services
As the data shows, in-home care services can pose a significant expense, especially for retirees on a fixed income. Fortunately, for many retirees, there is an additional source of cash flow available that can help finance these services and more – right in their homes. With today’s seniors accounting for record amounts of housing wealth, tapping into home equity with a Home Equity Conversion Mortgage (HECM) could provide a powerful funding solution.

Also known as a reverse mortgage, a HECM allows homeowners ages 62 and older to convert a portion of their home’s equity into cash they can use to comfortably remain at home. Better yet, there are no monthly mortgage payments required, as long as you continue to pay property taxes, homeowners insurance, and home maintenance costs.

While home equity can be used however you wish, many senior homeowners have leveraged funds to:

  • Help pay for in-home care services or set aside funds for future care needs
  • Avoid having home care services prematurely or unnecessarily lowered or canceled
  • Lessen the burden on family members who provide or pay for care
  • Retrofit, remodel, or modify their homes for safety, prevention, and other needs

How Much Money Can I Receive from a Reverse Mortgage?
The amount of money that you can receive from a HECM depends on a number of factors, including your age, appraised value of your home, and current interest rates. Reverse mortgages also offer multiple disbursement options for receiving loan proceeds. You have the flexibility to select what suits you best, whether it’s a lump sum for significant expenses, monthly payments to bolster your income, a line of credit for emergencies, or a mix of these options.4

As the old saying goes, there’s no place like home. And if you’re part of the overwhelming majority of Americans wishing to remain living in your home well into advanced retirement years, planning ahead can pay off – literally.

While home modifications and increased healthcare spending may be an inevitable part of aging, evaluating your financial readiness for these projects and care service expenses can help you prepare to live your golden years from the comfort of home – without jeopardizing your financial footing.

If you find that you could use an additional source of cash flow to fund these expenses, unlocking your home’s equity with a reverse mortgage may be an ideal solution. But just like selecting a care service provider, selecting a reverse mortgage lender requires careful consideration.

At Longbridge Financial, we’re committed to helping you determine if a reverse mortgage is right for you. Our team will get to know you, your home, and your financial goals as we discuss your options. And we feel so strongly about going above and beyond to provide you with top-notch service, that we’ve put our list of commitments in writing.

We’ve helped countless seniors transform their financial futures with the responsible use of home equity – and we can help you, too! For more information and to see how much you may qualify for in reverse mortgage proceeds, contact the Longbridge team today.

1 Robinson-Lane S, Singer D, Kirch M, Solway E, Smith E, Kullgren J, Malani P. Older Adults’ Preparedness to Age in Place. University of Michigan National Poll on Healthy Aging. April 2022.
2 [Hourly Rates] Home Care Costs in Each State | A Place for Mom
3 Genworth Releases Cost of Care Survey Results for 2023: Twenty Years of Tracking Long-Term Care Costs :: Genworth Financial, Inc. (GNW)
4 Borrowers who elect a fixed rate loan will receive a single disbursement lump sum payment. Other payment options are available only for adjustable-rate mortgages.

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By submitting your phone number you are providing your signature and express “written” consent to having Longbridge Financial LLC or our mortgage partners contact you about your inquiry at the phone number you have provided. You agree to be contacted via a live or automated prerecorded telephone call, text message, or email even if you have previously registered on a “do not call” government registry or requested Longbridge to not send marketing information to you. You understand that your telephone company may impose charges on you for these contacts, and you are not required to enter into this agreement as a condition of any Longbridge products or services. You understand that you can revoke this consent at any time by calling Longbridge Financial at 855-523-4326.

For information on how we collect and use personal information, please see our Privacy Notice.