Here is something worth thinking about. The average life expectancy for American men is now 75.8 years. For women, it is 81.1 years. And plenty of us will live well beyond that. Most financial advisors recommend planning your finances all the way to age 100.
That is a long time. And it raises a question worth asking right now: have you set things up so your later years go the way you want them to?
A little planning today can mean a lot more independence tomorrow. Here are four practical steps by Senior Resource that make a real difference.
1. Have the Conversation You Have Been Putting Off
Most of us would rather do almost anything than sit down and talk with our family about money, health, and what happens when we can no longer make our own decisions. But if you are counting on them to help you later, they need to know what you have in mind now.
Tell them where your important documents are kept. Let them know what financial resources you have. Decide who will make health decisions for you if you cannot. A document called 5 Wishes can help you think through your preferences for medical, personal, and emotional care.
Alicia Arbaje, a geriatric medicine expert at Johns Hopkins, puts it well. She says it is much easier to talk about things like advance directives or a future move to assisted living when you are not in the middle of a crisis. It is not easy. But having those conversations gives everyone peace of mind.
2. Get Your Legal Documents in Order
This is one of those things that feels like a lot of work until you realize how much trouble it saves. Here are the four documents that matter most:
- Financial power of attorney: This lets someone you trust manage your finances if you cannot. They can handle bank accounts, pay bills, and file your taxes on your behalf.
- Medical power of attorney: This lets someone make healthcare decisions for you if you are incapacitated. They can also access your medical records and choose providers for you.
- Advance directives: These are written legal instructions that spell out what kind of medical care you want if you can no longer speak for yourself, due to terminal illness, dementia, a coma, or another condition.
- A will: Dying without one creates a long, complicated process for your family. It can also send your assets into probate court. If you do not have a will, now is the time.
You can download a free advance directive for your state at caringinfo.org. If you have a financial planner or insurance agent, consider introducing them to the people who may one day help care for you.
3. Take a Serious Look at Long-Term Care Insurance
Here is something many people do not know: Medicare does not pay for long-term care, except in very limited situations after a hospital stay. If you ever need help with daily tasks like medication management, personal grooming, assisted living, or nursing home care, that cost falls on you.
Long-term care insurance is designed to cover exactly that. Most plans also include home care and may help pay for modifications that let you stay in your own home longer.
The best time to buy it is in your 50s or early 60s. The younger and healthier you are, the more affordable the policy will be and the more likely you are to qualify. A specialist in long-term care insurance can help you figure out whether it makes sense for your situation.
4. Think Carefully About Where You Will Live
The early years of retirement are often called the go-go years. You travel. You try new things. Maybe you move somewhere you always wanted to live. That is wonderful. But where you settle during those active years may not be the right place for your slower years ahead.
At some point, most of us will stop driving. When that day comes, transportation options in your community will matter a great deal. It pays to think about that now, while you still have choices.
If you can downsize or make a move while you are still in your go-go years, do it. Making that transition on your own terms before circumstances force it is far less stressful for you and a huge relief for your family.
None of this is easy to think about. But the payoff is real. When you plan ahead, you get to live on your own terms for longer. Your family worries less. And you can enjoy the years ahead knowing you have taken care of business. That is what aging better actually looks like.
