It’s Getting Harder for Americans to Grow Old in Their Homes

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WSJ Your Money Briefing 8 min 3 speakers 2 chapters transcribed 2 months ago
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Deel/Ad Reader 0:00
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J.R. Whalen 0:33
Here's your Money Briefing for Thursday, September 5th. I'm J.R. Whelan for The Wall Street Journal. Every day, more than 11,000 people in the U.S. turn 65. According to a survey from AARP of Americans 50 and over, many don't want to downsize their home as they get older or move in with family members. They want to stay in their current home.
Clare Ansberry 0:58
They plan, they may save. Running out of money is a big concern. The other concern is being a burden on family members. So many people, their kids have their own careers. They may not live nearby. So they really don't want to impose on them.
J.R. Whalen 1:15
We'll talk to Wall Street Journal columnist Claire Ansbury after the break.
Deel/Ad Reader 1:26
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J.R. Whalen 2:02
The vast majority of older Americans want to live as long as possible in their current home, but it's gotten harder to financially make that work.

What do recent AARP survey results reveal about older Americans wanting to age in place?

J.R. Whalen 2:11
Wall Street Journal columnist Claire Ansbury joins me. Claire, why has it become more of a challenge for Americans to afford staying in their homes as they get older?
Clare Ansberry 2:20
Well, the cost of doing so has really soared in recent years. It's now more than twice as expensive to pay for in-home care than the annual medium cost of a private room in a nursing home. And it's really a matter of supply and demand. The demand for in-home care has only increased because the population is getting older. The fastest growing cohort is in their 80s. And that group also needs the most medical care. We're living longer, but we're maybe not living as healthy as we did. And there's also not enough in-home care workers. That's a career that has seen a lot of turnover increase. since the pandemic, and it's traditionally been a low-paying career. So we've got more people needing it and fewer workers.
J.R. Whalen 3:07
How much can insurance help with these costs?
Clare Ansberry 3:09
Long-term care insurance can help, but there are limitations. So you really have to check the policy. Some may limit coverage, say, two to five years. Some may have a maximum benefit per month or a lifetime benefit. So you really got to check and see how much it covers. Some have a waiting period, like 90 days. So you have to cover those costs in the meantime. Some have coverage exclusions, like they wouldn't cover mental health. or other things. And also, by the time people want to get that insurance, the premiums may be so high if they're older or if they have pre-existing conditions.
J.R. Whalen 3:46
What are some of the primary concerns of older Americans who want to remain in their homes?
Clare Ansberry 3:50
There's two big ones. One is outliving their money. They plan, they may save, but they may not expect to live into their 90s. Running out of money is a big concern. The other concern is being a burden on family members. So many people, their kids have their own careers. They may not live nearby. So they really don't want to impose on them. They may try to do things themselves. Other concerns is the home repairs that they may have to make if they live in a two-story home. Steps are challenging. Another concern is transportation. If they're living at home and suddenly they can't drive, how are they going to get to the stores, their doctor's appointments?
J.R. Whalen 4:32
How did the homeowners you spoke to plan their finances for the costs of staying and getting care?
Clare Ansberry 4:37
Retirement savings, buying long-term care insurance. Some of them get their home modified early on.

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