Call it what you may: The Silver Tsunami, The Graying of America, or The Aging Nation. The United States has embarked on an unprecedented journey with a large percentage of the population aging. This phenomenon will end up personally impacting each of our lives in some way over the next decade.
Currently in the United States, there are an estimated 40 million people who are 65 years or older. This accounts for about 13% of the current population today. Because of the explosion of births during the Baby Boomer generation, the number of those over the age of 65 is expected to increase to over 80 million by 2030. The life expectancy in the United States has also increased over the years, so the number of the “oldest old” is also expected to rise to higher than ever before seen levels.
Are we ready? My answer would be a resounding No! Can we be ready? My answer is: Definitely Yes! I see and help so many people who are thrown into crisis situations and are struggling to make decisions during an already stressful time in their lives. Making critical decisions in the midst of a crisis does not often result in the best outcome.
How can we make things easier for ourselves? I think there are 4 simple steps that we can do to make things easier for ourselves…whatever our age.
Step # 1: Designate a Durable Power of Attorney.
A power of attorney is a legal document that authorizes someone to act on your behalf. An ordinary power of attorney ends when its purpose is fulfilled or at your incapacity or death. A durable power of attorney serves the same function as a power of attorney, however, it only goes into effect (and remains effective ) if you become incapacitated. If incapacity should strike you, your agent can maintain all of your affairs until you are again able to do so, without any need for court involvement. To cover all of the issues that matter to you, you’ll probably need two separate documents: one that addresses health care issues and another to take care of your finances. Fortunately, powers of attorney usually aren’t difficult or expensive to prepare. The time you spend preparing these documents is well worth it!
Step 2: Discuss your wishes with your Power of Attorney
Now that you understand what a durable power of attorney is; it is time to make your designation. The person you choose will need to be someone who you trust would make decisions based on your best interest. It also needs to be someone with whom you can have candid and honest conversations.
It is natural to avoid talking about things that we do not want to happen. Many of us feel that if we do not speak or think about “bad things” then they will not happen. Perhaps you hold this superstition close to your heart. Unfortunately, aging and health problems cannot be avoided by any of us. In fact, when we avoid our fears, they become a much more scary when they become a reality.
In a separate post I will discuss specific questions and tactics you can use when you have your candid talk with your designated durable power of attorney.
Step 3: Understand the cost of care
Many of us falsely assume that if we get sick and need help at home, that our medical insurance will cover the costs. Unfortunately, this is far from reality. The cost of caregivers in the home (people who come into the home to help with walking, bathing, dressing, meal preparation, etc.) is NOT something that your health insurance will cover. The cost to have 24 care in your home varies depending on where you live. Here in California, the average caregiver costs about $22/hour. If you do the math, you can quickly see how 24-caregiver service in your home can cost upwards of $10,000 per month. Perhaps for some people this might seem feasible, but to most retirees in the United States, this cost is unrealistic and unsustainable. Many people also falsely assume that if you are not well enough to be at home and need to be in a nursing home long term then your health insurance will cover it. Wrong again! Your health insurance may cover short stays in the nursing home but no medial insurance covers long-term nursing home (custodial) care. You will usually privately pay or this. There is an insurance product that will cover some (or all) of the cost of a home caregiver or custodial care at the nursing home: long term care insurance.
I will be discussing the pros and cons of long term care insurance in a separate post.
Step 4: Find a purpose in your life and Enjoy!
Most of us wish to live as long and as comfortably as possible. There have been a number of studies that have been done to try and find the “secret to long life”. Unfortunately no one has come up with a secret recipe that we can follow in order to guarantee our own longevity. I have read a number of studies done to try and elucidate how we can all live to our longest genetic potential. An underlying theme that I see in study after study seems to point to 2 things: socialization and having a PURPOSE. Having a purpose does not necessarily mean having a job. It simply means that we should find a reason to wake up every morning. For a centenarian in Sardinia, it was to go fishing every day to gather food for his family. For others, it may be to attend choir practice every week with local church members. Whatever your passion, whatever you value…..find a purpose and live every day to its fullest.