THE HIDDEN COSTS OF AGING THE IMPORTANT CONVERSATIONS

THE HIDDEN COSTS OF AGING: THE IMPORTANT CONVERSATIONS YOU NEED TO HAVE ABOUT CARE AND HOUSING EXPENSES INVESTMENT PRODUCTS: NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE

RETIREMENT IN THEORY 2

RETIREMENT IN REALITY In-home Remodeling Health Crisis In-home Support Health Crisis Skilled Nursing Unexpected Expenses Market Correction In-home Health Care Assisted Living In-home Remodeling Unexpected Expenses 3

CHANGING THE NARRATIVE Go-Go Years (age 65 to 75) Active lifestyle focused on family, friends, travel, hobbies and bucket list Slow-Go Years (age 76 to 85) A less active lifestyle with some “Go-Go” years remaining No-Go Years (age 86 to 100+) During this period, it may be more difficult to maintain the same active lifestyle 4

HOW AGING CAN DERAIL YOUR PLAN 5

AGENDA PROFILE OF AGING CARE AND HOUSING CONSIDERATIONS FORMULATE A PLAN 6

PROFILE OF AGING

THE OVER 65 SEGMENT IS GROWING Each day over Between 2012 and 2050, the over 65 population is expected to double. 43. 1 million 83. 7 millio Source: www. census. gov n 8

LIFE EXPECTANCY IS INCREASING A 65 -year-old woman can expect to live an additional 20 years, on average 1 A 65 -year-old man can expect to live an 1 additional 18 years, on average 20 18 Once a woman or man reaches 85, there is a good chance their lives will extend another 6 -7 years 1 6 -7 Women make up 55% of the 65 -and-older cohort % 55 Sources: 1 www. cdc. gov 2 2 And 61% of the 85 -and-older cohort 2 % 61 www. census. gov 9

WOMEN ARE OUTLIVING MEN Women are more likely than men of the same age to be widowed. 34% 73% 12% 24% Source: www. agingstats. gov 10

MORE AMERICANS ARE LIVING WITH CHRONIC ILLNESS The population is living longer with one or more chronic disease. 80% of older adults are living with one chronic disease 77% have at least two chronic diseases Source: www. agingstats. gov 11

RESIDENCE IN FULL-SERVICE FACILITIES INCREASES WITH AGE The percent of Medicare beneficiaries who reside in long-term care facilities more than triples to 15% from age 65 to 85. Source: www. agingstats. gov 12

THE TAKEAWAY Longer life expectancy Increased chronic illness “ Increased likelihood of need for assistance If you don’t make a plan, a plan will be made for you ” 13

CARE AND HOUSING CONSIDERATIONS

CARE AND HOUSING CONSIDERATIONS Continuing Care Retirement Communities Aging in Place 55+ Independent Living Communities Assisted Living Facilities Skilled Nursing Facilities 15

RESOURCES: ASSESSING YOUR HOUSING NEEDS DISCUSSION GUIDE Aging in Place 16

AGING IN PLACE Live in one’s own home safely, independently and comfortably ü Enjoy the comforts of home and continuity of residence ü Maintain medical and social relationships ü Cost effective if home is suitable 17

FAMILY CONSIDERATIONS Aging in Place Proximity of family Availability of family Commitment to aging in place 18

LIFESTYLE CONSIDERATIONS Aging in Place Ability to perform activities of daily living • • Preparing and eating meals Bathing Dressing Managing medications Home modifications • • Single floor living Wide doorways Reachable controls Safety features Assistive devices and technologies • • • Monitoring Communication Reminders 19

RESOURCES: HOME SAFETY ASSESSMENT WORKSHEET Aging in Place 20

HEALTH CARE CONSIDERATIONS Aging in Place Geriatric Care Managers Home Care Services Companion Care Services Private agencies that provide a variety of medical and non-medical services for in-home patient care Schedules appointments and interacts with health care providers and insurers Non-medical staff hired by the hour to provide companionship and comfort to individuals who cannot be left at home alone Social Services Adult Day Care Services Help with identifying and finding the appropriate care after a hospital stay Social activities with skilled services from social workers, therapists and nurses, etc. 21

RESOURCES: HOME SUPPORT SERVICES WORKSHEETS Aging in Place 22

FINANCIAL CONSIDERATIONS Aging in Place Hourly Daily Monthly Annual Change Since 2018 Homemaker Services $22. 60 $141 $4, 290 $51, 480 7. 14% Home Health Aide Services $23. 00 $144 $4, 385 $52, 624 4. 55% * $75 $1, 625 $19, 500 4. 17% Adult Day Health Care Source: Genworth 2019 Cost of Care Survey. *Facilities do not utilize hourly rates. 23

55+ INDEPENDENT LIVING COMMUNITIES Homes or apartments for relatively independent, active individuals or couples over age 55 ü Medical services nearby ü Access to range of amenities and social activities ü Opportunity to engage with others at same stage of life 24

FAMILY, LIFESTYLE, HEALTH CARE AND FINANCIAL CONSIDERATIONS FAMILY 55+ Independent Living Communities LIFESTYLE ü Welcome to visit or stay with residents ü Couples with different non-medical needs can stay together ü Built-in social outlet ü Recreation facilities ü Ability to engage with residents of similar state of life HEALTH CARE ü Doctors’ offices are often close by ü Residents can bring in non-medical care ü Skilled medical care is not on-site FINANCIAL* ü Estimated monthly ‒ $1, 500 - $10, 000 ü Estimated annual ‒ $18, 000 - $120, 000 Source: www. retirementliving. com “Senior Housing: What does it cost? ” January 2, 2020. 25

CONTINUING CARE RETIREMENT COMMUNITIES Residents can get a continuum of aging care – from independent living to assisted living to skilled nursing care ü Services that could include meals, housekeeping, transportation and on-site medical care ü May include lifestyle amenities such as pools and fitness centers ü Ability to stay in place as medical needs increase ü Most comprehensive of all housing options 26

FAMILY, LIFESTYLE, HEALTH CARE AND FINANCIAL CONSIDERATIONS FAMILY Continuing Care Retirement Communities LIFESTYLE ü Attractive options for couples where one person needs more care ü Family members have peace of mind knowing loved one is cared for and safe HEALTH CARE ü Every level of care ü Must be able to live independently at move-in ü 24 -hour security ü Social and recreational activities ü Dining options ü Housekeeping, transportation, wellness and fitness FINANCIAL* ü Estimated monthly ‒ $900 - $10, 500 ü Estimated annual ‒ Entry fee $100, 000 -$500, 000 ‒ plus $10, 800 to $126, 000 Source: www. care. com, The cost of continuing care communities: Can you afford it? ”, Jayne Kennedy, January 22, 2018. (Pay-as-you-go contract, one of three typical types of CCRC contracts. ) 27

ASSISTED LIVING FACILITIES For residents who need some assistance with daily activities but do not require skilled medical care ü Services may include meals, housekeeping, transportation and on-site medical care ü Provide help with bathing, dressing and mobility ü Ability to stay in place as medical needs increase 28

FAMILY, LIFESTYLE, HEALTH CARE AND FINANCIAL CONSIDERATIONS Two Assisted Living Facilities FAMILY LIFESTYLE ü Family members have peace of mind knowing loved one has help carrying out activities of daily living ü Social engagement ü Supported living environment HEALTH CARE ü Health care supervision ü On-site or off-site medical visits FINANCIAL* ü Estimated daily ‒ $ 133 ü Estimated monthly ‒ $4, 051 ü Estimated annual ‒ $48, 612 Source: Genworth 2019 Cost of Care Survey. *Facilities do not utilize hourly rates. 29

SKILLED NURSING FACILITY For people requiring on-site skilled medical care, including nurses, physical and occupational therapists and doctors ü Highest level of medical care prescribed by a doctor ü Increased security to protect patient safety ü Ability to serve patients with memory care issues 30

FAMILY, LIFESTYLE, HEALTH CARE AND FINANCIAL CONSIDERATIONS Two Skilled Nursing Facilities FAMILY LIFESTYLE ü Provide a level of care that family may not be equipped to offer ü Family may visit or arrange to pick up a resident ü On-site access to services ü Meals and activities included ü Closer supervision and security Semi-private Room ü Estimated daily ‒ $247 ü Estimated monthly ‒ $7, 513 ü Estimated annual ‒ $90, 155 FINANCIAL* HEALTH CARE ü Medical and nursing care provided on-site ü Separate memory care units are often provided Private Room ü Estimated daily ‒ $280 ü Estimated monthly ‒ $8, 517 ü Estimated annual ‒ $102, 200 Source: Genworth 2019 Cost of Care Survey. *Facilities do not utilize hourly rates. 31

RESOURCES: HOUSING OPTION WORKSHEETS 32

FORMULATE A PLAN: NEXT STEPS ü ü ü Speak to a Financial Professional Determine your wishes Identify specific resources and facilities Take action Document your wishes 33

RESOURCES Brochure Workbook

QUESTIONS? “ The time to repair the roof is when the sun is shining. ” - John F. Kennedy 35

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