As we age, we start getting concerned about financial security and long-term care become increasingly worrisome, especially for the one in four childless adults over 50 who worry about who will care for them in their later years. A recent study by the Pew Research Center highlights this concern, showing that 35% of adults in this demographic are also worried about not having enough money as they age. Addressing these fears requires proactive planning and action, particularly starting in one’s 50s.
Start With a ‘Financial Fire Drill’
Mark La Spisa, a certified financial planner and president of Vermilion Financial, advises individuals to conduct what he calls a ‘financial fire drill’ starting at age 50. This involves a very thorough assessment of all current assets, expenditures, and savings, and projecting these figures into the future to see what your financial situation will look like as you approach retirement.
“Let’s take your current path, and without changing anything, let’s see what it looks like on the eve of your turning 65,” La Spisa suggests. This annual evaluation helps track changes that might affect your budget, such as new medical expenses or changes in income from property sales, allowing you to adjust your spending or saving habits accordingly.
Invest in Long-Term Care Insurance
One significant step in securing your future is investing in long-term care insurance. This type of insurance covers services that regular health insurance does not, such as assistance with daily activities like bathing and dressing, and can also provide reimbursement for care in assisted living facilities.
La Spisa emphasizes the importance of this coverage: “If you have quality long-term care, you are transferring the risk from yourself to the insurance company.” He also recommends visiting potential living facilities beforehand to become familiar with your options, ensuring you make an informed decision when the need arises.
Ensure Your Living Environment is Aging-Friendly
Another crucial aspect of preparing for the future is ensuring your living environment can accommodate potential decreases in mobility. Carolyn McClanahan, a physician and certified financial planner, suggests evaluating whether your current home will meet your needs as you age. “If you have knee problems or use a walker, a three-story home might not be ideal,” she points out.
Additionally, consider the accessibility of essential services and community resources. Living in car-dependent areas might pose challenges if you are unable to drive in the future. McClanahan recommends residing in walkable communities where hospitals, grocery stores, and other necessary facilities are easily accessible.
Cultivate a Supportive Community
Community involvement is another vital strategy for ensuring you have a support network as you age. McClanahan advises making what she calls “deposits of kindness” by engaging in community activities, such as volunteering or participating in local groups. This not only enriches your social life but also builds a network of friends and acquaintances who can provide support when needed.
“Make deposits of kindness for future care,” McClanahan advises. “Many women do food pantries or volunteer to help different people. When you’re involved in the community, you make friends.” It’s not about making connections solely to find a caretaker, but about creating a vibrant social life that naturally includes people who will check in on you and offer help if necessary.
Conclusion
For childless adults over 50, securing a safe and comfortable future requires comprehensive planning and active involvement both financially and socially. By conducting regular financial assessments, investing in long-term care insurance, ensuring your living environment is suited to your future needs, and actively participating in your community, you can lay a solid foundation for a secure and fulfilling retirement. Remember, it’s never too early to start planning, but waiting too long can leave you unprepared for the challenges of aging.
