Freelance Contribution by Jessica Walter
Only a third of America’s fifty million senior citizens are living independently, outside of nursing homes. If you’re concerned about being able to afford a nursing home and healthcare when you are 65 or older, you should know that modern financing options are out there. While saving for retirement is the best defense against financial problems during your golden years, there are innovative ways to find money, even if you haven’t saved enough.
Move to a Smaller Space
The median price of a South Carolina home is $157,600 according to Zillow. A home is typically the biggest expense that a person has and plenty of costs are involved with maintaining a property. When you choose to downsize, you’ll pay less per month for your mortgage and this will allow you to put more money away for the future. If you don’t want to move, consider upgrades which make your home less expensive to run, such as energy-efficient home improvements.
Get Rid of Debt
Debt means interest and these payments can really add up. For this reason, you should focus on eliminating debt. When you do, you’ll be primed to put money away for retirement, rather than giving it to lenders. One ultra-modern option is debt consolidation. By getting a debt consolidation loan, you’ll be able to make one monthly payment on your debt, for an interest rate that is likely lower than what you’re used to paying. The California Teacher’s Association asserts that it’s possible to save ten percent on interest when you consolidate.
Negotiate with Nursing Homes
If you’re advocating for a senior that you care about, you should be aware that it’s possible to negotiate with nursing homes.There is often room for negotiation for the long-term costs of care. For example, a nursing home will be willing to accept a private pay rate that’s lower than average, provided the rate remains higher than the rate from Medicaid.
Get an Affordable Loan
Big banks aren’t your only option when it comes to accessing funds for long-term care. These days, a lot of alternative lending solutions are available, from personal loans from third-party financiers to peer-to-peer lending and beyond. Finding a low interest rate is what it’s all about. Think outside of the box by exploring alternative lending solutions that don’t come from major financial institutions. Then, compare interest rates and loan terms to what the big banks are offering.
Start Planning for Retirement
Thinking about the cost of retirement can be stressful. Careful planning, well ahead of time, is the best way to take the pressure off. However, it’s never too late to start thinking about how to finance the cost of a nursing home, which may run as high as 7.500 USD per month. So, why not come up with a financial plan for retirement today?