The High Cost of Senior Care and How Reverse Mortgages Can Help
As the baby boomer generation ages, the costs of senior care are becoming increasingly burdensome. With 73 million Americans in this demographic, and the oldest members turning 77 this year, the need for affordable and accessible care is more pressing than ever. Unfortunately, many middle-income boomers are caught in a bind: they don't have the financial resources to pay for expensive care, but they don't qualify for federal safety-net insurance either.
What We Know About The Cost Of Senior Care
The Center for Retirement Research at Boston College estimates that 18 million middle-income boomers will need moderate to severe care but will be unable to pay for it. This gap in coverage is exacerbated by a shortage of home care aides, which has been made worse by the pandemic. Median costs for 40 hours a week of assistance from a care aide in the home, including help with bathing, dressing, eating, and toileting, can run over $56,000 per year.
Assisted living facilities are also often out of reach for many seniors due to their high costs, which start at around $4,000 per month for base rent and can skyrocket if the resident has dementia. In fact, nursing homes are the most expensive option, costing over $10,000 per month on average.
Reverse Mortgages: A Potential Solution
One potential solution to financing in-home care for older people is the reverse mortgage industry.
Although many people believe that programs like Medicare cover the costs of long-term care, this is not actually the case. Reverse mortgages, however, have been cited as an option to pay for long-term care.
While reverse mortgages were once seen as a risky option, they have since "reemerged" as a payment option in a story from U.S. News and World Report. Ultimately, the sustainability of such a funding option would depend on the home value and the amount of loan proceeds available.
Reverse Mortgage Help: DDA Mortgage (727) 784-5555
If you or a loved one is struggling to afford the high costs of senior care, contact DDA Mortgage at
727.784.5555 to explore your options. We specialize in reverse mortgages and can help you understand if this financing solution is right for you.
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