Financing Aging in Place Renovations
The decision to remain in your home or move to a facility can be a difficult one to make. For many seniors, the preference is usually to stay in their home where they are already most comfortable. According to AARP, 90% of aging adults would prefer to stay in their home as long as possible. This is likely due to the feeling of independence and cost-savings that remaining in your home offers.
If the decision to age in place is right for you, there are still a number of considerations to be made when evaluating your current living situation, the most significant of which being the renovations that may need to be made in order to make your home a safe and comfortable place to live. Financing these renovations can be a huge undertaking. To help you better understand your options, we’ve put together a guide on ways to finance your aging in place renovations.
Utilize Your Savings
With retirement age looming, many adults may have started a savings account that could help them pay for the financial needs of growing older. If you are among this group, now may be the right time to access these funds to pay for home upgrades that need to be completed. Talking with a financial expert or a trusted advisor can help you make the most out of your savings to pay for these renovations wisely. If you are paying for these expenses out of pocket and are above the age of 65, you may qualify for a tax deduction through the IRS of up to 7.5% of your gross income to help offset the cost of modifying your home.
The financial reality of this, however, is that the cost of living over the past few years has made this unattainable for many seniors to have accumulated. Thankfully, there are other options available to choose from that will help you make your home a safe place to live for years to come.
Take Out a Loan
Taking out a loan to pay for the financial needs of home renovations can be a smart decision and may even pay off in the long run. Though taking out a loan can seem like a daunting task, it doesn’t have to be. When applying for a loan to use for home modifications, there are a few options to choose from. You can use a personal loan or opt for a loan that utilizes your home’s equity. Either of these options can help you afford the renovations you’ll need to make for accessibility and comfort, but you may find that one option is better suited for you than the other. Be sure to conduct the appropriate research and ask any questions you may have before applying for one of these loans.
Investigate Your Insurance Policies
One benefit of having a health insurance plan or home insurance plan, whether it be through a private or government agency, is the ability to claim certain modifications towards your deductible. Though there may be limitations as to what is covered and what is not, it’s worth investigating as options such as long-term care policies, medicaid, medicare, and private offerings all have various programs that you could utilize to cover the cost of some or all medically necessary home modifications.
Choose Secondhand Options
You may be able to find some of the medical or home equipment that you need in gentle or never used conditions for a lower price. Local stores, online marketplaces, or even friends and family may have the options you need available. Look around for these options before investing in new to help save some money.
Veterans Association (VA)
If you are a veteran or if your spouse is a veteran, you may also qualify for special benefits. The VA offers home adaptation grants that help qualified veterans and their families make the modifications they need to make on their home with assistance. Talk with your local VA facility to see if you qualify for one of these grants.
Once you have identified the modifications you will need or want to make to your home in order to safely age in place and have chosen the right financial option, you can begin the renovations. Be sure to lean on family, friends, and experts to help you with this process. Once the renovations are completed, you’ll be able to enjoy your home with the peace of mind that it will be safe and comfortable for years to come.