Researchers at the University of Chicago said in a recent study a large number of adults “aging in place” might discover that unexpected healthcare costs threaten their ability to maintain their home.
50% of boomers may face a home vs. healthcare choice
In accordance with the study that examined probabilities in 10 years, over fifty percent of middle-income Americans – those with about $25,000 to $74,300 annually in financial resources – over age 75 will not be able to afford the care they need to live independently or the cost of a nursing home or assisted living facility.
The study attributes this upcoming problem to a mix of factors, including rising housing and care costs, longer lifespans, increasing chronic health conditions along with a shrinking population of would-be family caregivers.
This issue may very well be serious in Florida, where nearly 20% of the population is over 65 – the largest rate in america.
Researchers noted that the study may even underestimate the condition, considering that it calculated expenses that included only $5,000 in average annual out-of-pocket medical spending. Across Florida, nearly a half-million residents age 75 and older qualify as middle income, and that figure likely will grow substantially in the coming decade.
AARP Florida spokesman Dave Bruns says the state could adopt lower-cost solutions from other states, like Washington, which spends 50 % of its Medicaid long-term-care budget on home- and community-based care services. Florida currently spends 22%.
Meanwhile, Bob Kramer, founder and strategic adviser at the National Investment Center for Seniors Housing & Care, which commissioned the study, said investors must recognize the possibility of developing products and housing solutions for this aging population.
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