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Retirement Spending: Aging in Place Home Repairs Are One of the Biggest Costs to Seniors — 4 Ways To Save - Yahoo Finance

Author: Yahoo Finance

Source: https://finance.yahoo.com/news/retirement-spending-aging-place-home-124836135.html

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DjelicS / Getty ImagesHousing costs might be an unexpected source of financial stress in retirement.An analysis by T.Rowe Price found that even though healthcare expenses often top retirees’ cost concerns, housing costs are both the top spending category and the top source of spending volatility.Explore: 5 Places To Retire That Are Just Like Florida But Way CheaperDiscover: The Simple, Effective Way To Fortify Your Retirement MixWithin the housing expense category, home repairs and improvements could be a particularly tricky area to manage.It can be hard to know exactly when you’ll need a home repair, let alone know how much that will cost.And with many seniors wanting to age in place, costs can stack up if you also need to undertake construction projects like modifying stairs or doorways for better accessibility.That said, there are some steps you can take to potentially make aging in place easier on your wallet.1) Look for GrantsLow-income seniors may be able to qualify for home-modification grants through local nonprofits or government agencies.The U.S. Department of Housing and Urban Development (HUD) awarded nearly $15 million in grants earlier this year to help more seniors age in place.You can look up the organizations that have received HUD funding here — more might be added over time — and then reach out to see if you qualify for assistance.2) Buy a Home With Accessibility in MindTwenty-one percent of adults ages 50 to 80 have not given any consideration to what home modifications they might need, according to the University of Michigan National Poll on Healthy Aging.However, among those who have moved in the past five years, the top changes were moving to a home that’s easier to get around and moving to a smaller home.Planning ahead by buying a home where you can age in place can save you money on modifications down the road.Or, if you’re already in the home you plan to live in permanently, you might spend money on modifications now rather than wait until retirement, when you’re likely to have less income.3) Buy a Home WarrantyTo reduce the risk of unexpected repairs ruining your retirement budget, you might buy a home warranty plan.While it carries an upfront anual cost, it could save you money overall if you need to replace major appliances or fix plumbing, electrical or heating and air conditioning issues.You can customize your home warranty according to how much you want to spend and how much protection you need. Compare your options and be sure to read the fine print so you understand the coverages and exclusions as well as the warranty company’s policies and procedures for handling claims.4) Build an Investment Portfolio With Home Repair Costs in MindWhile a retirement portfolio designed to produce guaranteed income provides a sense of security, it could force you to take premature distributions or take on debt to cover major home repairs and other “liquidity events” requiring immediate access to cash.Dave Ramsey: 6 Biggest Retirement Myths You Should Stop BelievingT.Rowe Price recommends including both liquidity and growth opportunities in your portfolio allocation.Having some liquidity can help you afford home repair costs as they arise, while the growth component can produce greater returns over time.More From GOBankingRatesRobert Kiyosaki's 6 Passive Income Ideas10 of the Most Valuable Pennies3 Ways to Recession Proof Your Retirement18 Ways Your Credit Card Can Be Your Best Financial FriendThis article originally appeared on GOBankingRates.com: Retirement Spending: Aging in Place Home Repairs Are One of the Biggest Costs to Seniors — 4 Ways To Save

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