The Rising Cost of Aging in Place: Preparation is Key

Did you know that a single older New Jersey homeowner in good health who is mortgage free needs $29,856 per year to live independently? That’s 33% higher than the national average. This is according to the 2021 Elder Index, compiled by the Gerontology Institute at the University of Massachusetts, Boston.

For couples, that figure reaches $41,112, or 21% above the average. Factor in poor health, and these costs rise to $32,472 and $46,344 respectively, while those renting or paying mortgages are faced with even higher costs. In the state of New Jersey, 54% of older adults are economically insecure, according to the index. And with inflation topping 9% in June 2022, the cost of aging in place is rising fast.

Add home care into the equation, and expenses balloon. The 2021 Genworth Cost of Care Survey puts the median monthly cost of in-home care in New Jersey at $5,710.

Have you considered how you’ll pay for these rapidly increasing costs?

Plan for the Future and Save Money

Fellowship Freedom Plans put your mind at ease by helping you save money. They cost less than traditional long-term care insurance and allow you to age in place at home, surrounded by friends and family in a neighborhood you love. What’s more, a personal care coordinator is on hand 24/7 to connect you with long-term care services, answer any questions you may have, and act as your advocate.

On average, people require three years of additional care as they age. With long-term care insurance, you’ll typically spend $336,455 for three years of home care. But with Fellowship Freedom Plans, members who join at age 75 can expect to spend significantly less—just $90,524 for the equivalent period.

Are You Prepared?

In 2022, HCG Secure conducted a survey of middle-income Americans aged 40 to 64 to find out about their long-term care perceptions and preparation. The results revealed 7 in 10 respondents would like to receive care at home. Yet 20 percent of respondents  were not sure how they would cover the costs of that care, while almost half admitted they were unaware of how much those costs would be.

Having a plan in place means you won’t face unexpected (and likely soaring) expenses. Joining a plan also takes the pressure off your children, who may face a loss of income themselves if they take time out of their careers to care for you. Additionally, Fellowship Freedom Plans offer inflation protection, providing a welcome cushion against the rocketing cost of long-term care.

Preserve Your Assets

One concern you may have is whether you’ll need to sell your home to pay for care as you age. With Fellowship Freedom Plans, your assets are protected via our gold, silver and bronze levels of Lifetime Coverage. You’ll receive long-term care services at a fraction of the cost of those paying privately.

Enjoy Tax Benefits

Another great advantage of a Fellowship Freedom Plan membership is the money that you save through tax benefits when prepaying for future care. Both membership and monthly fees should be tax deductible as a medical expense. Be sure you consult your tax advisor regarding eligibility and benefits.

It’s often hard to think about aging, and the rising costs can seem daunting. Planning ahead gives you both peace of mind and financial savings. If you’d like to discover more about why Fellowship Freedom Plans are the smart choice, call us today at 908-580-3850 to discuss which plan is right for you.