My grandmother is about to turn 103, and she’s still living at home. She’s got a handful of secrets to her longevity, including a daily dose of light exercise followed by a Crown Royal and ginger, and a solid grasp on her finances to ensure she can continue aging in place, as long as she’s able. When she’s not socializing with family, friends and her part-time PSW, she’s on the phone with her financial adviser talking about stocks and what she read in the paper that morning.
After a solid financial review with said adviser, and great family consultation, my grandmother downsized her life 20 years ago, to shore up her nest egg, move to a much smaller home, and lightly renovate to accommodate her changing needs as she’s aged.
As it turns out in recent polling from Ipsos through a study commissioned by HomeEquity Bank, 90 per cent of Canadians want to stay in their homes as they age, but only six per cent have planned for the full costs, including costs for home care, and can truly afford it.
With this obvious clash of aspirations to age in place with the economic (and health care) realities in Canada, it’s not too soon to explore what age-in-place home improvements, and home-care cost options (and alternatives) are available for yourself and aging family members.
Craft your list of core needs and assess your budget
Before hiring a contractor to start renovations or ordering grab bars in every finish imaginable, take a hard look at your finances. Do this with both a financial adviser and a qualified accountant. If you’re helping an elderly person in your life with this task, ensure you’re involving them in this process as appropriate.
Crafting a list of core needs for your home to age in place is key to ensuring you invest in the right, lasting, and flexible home modifications, and it will help you stay on budget. It also might turn out that there’s ample money to cover the costs, or simply not enough, or that the current home isn’t going to work. If it turns out to be the latter scenario, it’s best to pivot and project the costs for a retirement home or downsize scenario instead, and deeply consider the ideal timing for it — remember, the goal is to make sure the money will last.
Should there be enough money to age in place, consider some of these home improvements. If mobility is reduced, you may need to look at ramps, railings, adjusted heights for countertops, beds, toilets and so on, for example. If vision is a concern, modifying lighting, marking the stove and laundry areas clearly and reducing any built-in tripping hazards, such as lifting carpets, is key.
Rather than making this list of potential needs and associated costs on your own, leverage in-home assessment services to better understand your needs and the required improvements to age in place comfortably. Many primary health-care providers can recommend free or low-cost assessment services, specifically suited to your unique health requirements. Some of these are provided through the province you live in while others are through national or local non-profits like Canadian National Institute for the Blind. CMHC has a very helpful checklist of low-to-no-cost home modifications to consider, if you do not receive an in-home assessment.
Next, because the costs to modify a home to age in place can be overwhelming, prioritize the most important set of home modifications, and flag the nice-to-have but can wait items. This will help spread out the costs, hopefully over many healthy years, rather than doing everything at once. You can then price out the costs to make your home modifications, which will form the basis of your age-in-place budget. In your budget, don’t forget to work in any anticipated contractor costs (for ongoing renovations and enhancements), and costs for PSWs or in-home care should you proceed down this path. If there is (or will be) a power of attorney involved, they need to be up to speed on your budget and plans.
Financial supports through the government
Modifying your home, and then living in it as you age, will be an investment on your part, just like it would be if you were to move into a supported retirement home. The good news is that there can be some financial help for seniors who want to age in place. Each province offers unique and relevant support based on the needs in their communities, and many of these are geared toward lower-income seniors. There are supports for energy costs, home renovations, snow removal and more.
After you’ve completed a needs assessment in your home, begin investigating the financial systems and supports for your unique needs. If your internet searching isn’t fruitful, make a trip to your local library. Librarians are incredibly helpful at refining searches and getting you the information you need. Compare the full expected costs to what you can afford.
Renovation expenses that improve safety and access in a home might qualify for the Federal Home Accessibility Tax Credit. There is a lot of backup documentation required for this. The maximum claim is $20,000 per year per qualifying individual. Many seniors also qualify for the Medical Expense Tax Credit for eligible medical and care costs, too. Again, keep good records and all receipts. You pay up front, then receive these credits, if eligible, later on.
Any kind of home modifications can impact the value of a home. My advice is to keep them flexible if possible, in order for a potential buyer to reverse the work. However, many buyers might view the property as having an advantage in that they might need the modifications themselves, and they might be willing to pay the asking price.
I know how strong the draw is to age in place and see the many benefits with my grandma; it’s about keeping your independence and your memories intact. With advanced planning, possibly a bit more saving, and realistic budgeting it might just be possible. It’s not too early to map out this scenario.
