Senior Housing

If there is one thing I have learned over the years it is that there is not one size fits all housing solution for retirees. There isn’t a retirement age either. We used to assume that when we reach a certain age we will retire and want a smaller house. I have had clients who wanted to move into larger houses during retirement. They wanted space for family gatherings and for children and grandchildren.

You don’t have to move just because you are retiring. You can stay where you are. Don’t let anyone talk you out of it if that is what you want to do.

Downsizing is an option for those who can afford it. Buying and selling can be stressful but it has always worked out for my clients.

Call or write for a free consultation if you are interested in downsizing in the next year or so.

Mortgage lenders don’t like this idea and neither do landlords. There are some huge advantages in owning a home free and clear in retirement. In St. Paul the property taxes are high but property tax refunds are available through the State of Minnesota for low-income property owners.

In 2020 according to Zillow, 37% of Americans own their homes free and clear. The number went up by 5.5% after the Great Recession. In 2017 41% of baby boomers owned their homes free and clear. For seventy-year-olds, an estimated 68% are mortgage-free, in 2022 that number grew to 70%.

Over the years, I have read tons of advice suggesting paying off a mortgage isn’t a good idea. It makes sense that if paying off a mortgage means using up savings and retirement accounts it probably isn’t a good idea. Other debts should be paid off first, especially credit card debt.

Owning a home free and clear means lower housing costs during retirement. Those property taxes are killer but still lower than renting or paying taxes and making mortgage payments.

It might even be possible to retire without having a million dollars by owning a modest home that is paid for and no debt.

It isn’t possible to save up enough for long-term care. To get help paying for care seniors will need to spend all of their savings. In most cases, homeowners do not have to sell their houses to pay for care as long as they live in the house.

There are some psychological benefits of not having to make house payments can be liberating. Something to consider when planning for retirement.

Alzheimer’s disease can be hard on a house. The owner may forget to clean the kitchen and pay the bills. Can you imagine remembering to pay your property taxes when you don’t always remember who you are?

In the US some 27% of people who are over 60 live alone. age is the biggest known risk factor for dementia. The majority of people with dementia are over the age of 65, and the risk of this condition increases as you get older, and the population is aging.

It is easy to forget to turn off the burner on the stove. Operating a microwave oven isn’t always intuitive and for people with dementia it can be very difficult.

I don’t have any answers or solutions on how to keep people with dementia safe when they are alone in their own homes. We all need to keep pay attention to aging family members and help our neighbors when we can.

In St. Paul, the fire department has a team that can respond to non-emergency crises. They can be reached at 651-228-6216 on weekdays between 10:00 AM and 6:00 PM. I recently met the head of the unit Deputy Chief Dwayne Gibbs.

There is also the House Calls program through Ramsey County. 651-266-1290.

There are other services. I am in the process of working with a couple of government agencies and the Saint Paul Areas Association of Realtors to come up with a list of services specifically for elderly homeowners in crisis.