Aging in place refers to the decision to live alone and independently in your own house as you get older. This decision has become more popular than ever, with many seniors wanting to maintain their independence and stay comfortable and familiar within their homes.

Despite the positives associated with aging in place, it can be a costly choice, so financial planning is a must if this is something that you or a family member or friend are looking into.

In this article, we’ll be looking at some of the costs of aging in place, as well as some overlooked ways to make the money needed, such as government assistance programmes.

Hidden costs of independent living vs. assisted living

There are various hidden costs associated with both assisted living and independent living. However, the actual difference in costs can fluctuate significantly depending on various factors like the amount of modifications needed in a home.

According to the NHS, in-home carers tend to cost £20 an hour, though this varies depending on location. The organisation also states that weekly costs can vary from £800 to £1,600 a week.

When it comes to a care home, the NHS states that residential homes can cost £700 a week and nursing homes can cost more than £850 a week. Of course, this is all subject to variation.

Let’s take a look at some common hidden costs of independent living and assisted living.

Independent living

High-cost adaptations to homes, such as lifting aids and wet room conversions.
Costs to the property, such as council tax and insurance.
Domiciliary care, referring to various assistance services accessible from home.
Emergency home situations, such as urgent repairs.
Travel, delivery and transport costs.

Assisted living

Services that aren’t included in the price package, such as certain housekeeping options, specialist meals, personal grooming or private medical care.
Personal expenses, such as furnishings for a bedroom.
Charges for transportation, such as taxi services or fees for private transport.
Escort services for healthcare, such as escorts who attend appointments with patients.
Any medical services beyond the basic support that is included in the assisted living package.
Palliative care and end-of-life costs.

Budgeting for home modifications and care services

Budgeting is a necessity when it comes to preparing for aging in place or assisted living. Here are some tips to make this budgeting more manageable:

Start saving as early as possible. A significant nest egg can make things easier in the long run.
Plan for an increase in needs over the space of five to ten years. Don’t just focus on current needs.
Prioritise the more significant necessities when it comes to home modifications and care services, such as mobility aids (handrails, walk-in showers etc.).
Opt for scalable home modifications to avoid paying more than is necessary. For example, choose equipment that can be altered for a wide range of needs, so you don’t have to keep buying different items.

Reverse mortgages: pros, cons and alternatives

Reverse mortgages (also called equity release in the UK) are an option that allows homeowners that are 55 and older to access funds tied to their home without having to move house. These mortgages allow the homeowner to borrow money against the value of their home without having to pay it back in monthly instalments.

Equity release lets you stay in your home while also offering tax-free cash that can be received as a drawdown (small amounts) or as a lump sum. This can be invaluable when emergency care or home modifications are needed. However, it does come with risks, such as a reduced inheritance (some or all funds might go to the lender instead), compound interest and a negative effect on the benefits you can access.

Some alternatives to reverse mortgages include the following:

Government grants.
State benefits.
Downsizing to a smaller home.
Renting out a room to a lodger.
A RIO (retirement interest-only) mortgage.

Government assistance programs often overlooked

Many families are unaware of which government support initiatives they might be entitled to. This support can lower the costs of care services or home modifications for aging in place, so it’s vital that you know what you are entitled to. Here are some noteworthy UK government assistance programmes that can be particularly helpful:

Attendance Allowance: A benefit for those who need help with disabilities or illnesses and are over state pension age. More money is paid out to those who need help during the night and the day (rather than just the day or the night) or those with a terminal illness.

Council Tax Reduction: Helps those who claim particular benefits or those on a low income.

Disabled Facilities Grants: A grant for those who have disabilities and need to make home modifications.

Pension Credit: For those over State Pension age who struggle to make a living from their income. It tops up your existing income and is separate from the State Pension. Pension credit is split into two parts: Savings Credit and Guarantee Credit. Some are entitled to both parts, while others are only entitled to one part.

Long-term care insurance considerations

Insurance is also an option that can be invaluable when it comes to covering assisted living or home care costs. Some factors to consider when looking for the right insurance plan include:

Exact coverages.
Premium plans and costs.
The optimal age of the recipient.
Specific triggers regarding benefits.
The health status of the recipient.
Options surrounding hybrid insurance.

Personal alarms for assisted and independent living

Personal alarms have become an essential part of keeping seniors safe for both those living independently and those in assisted living facilities. They offer a safety net for both the individual and their friends and family, no matter what kind of living situation they are in. Those looking to prepare for aging in place will benefit significantly from a personal alarm, such as those offered by SureSafe.

Learn more about SureSafe personal alarms for assisted and independent living

Seniors aging in place can take solace in the security that a SureSafe alarm can provide, but those in assisted living facilities can also utilise SureSafe’s personal alarm system for an extra precaution in the event of an emergency.

SureSafe devices provide simple to use and affordable protection for seniors who are isolated, offering a range of features including 24/7 monitoring and the ability to talk to your contacts or our response centre directly through the alarm.

SureSafe offers high-quality products and reassurance for seniors and their friends and family. For more information, give us a call on 0808 303 4541, get in touch on our live chat, or request a callback on our online form. Make sure to have a read of our Trustpilot reviews as well to see what our customers have to say about our services and products.