A Financial Hit That Few Budget For

Christine Salhany spends about $240,000 a year
for 24-hour in-home care for her husband, Jimmy,
who has Alzheimer’s.(WSJ)

Everyone in my boomer circle of friends and relatives has been hit by the cost of caring for a loved one; it could be a parent, a spouse, or even themselves. It's a crushing financial burden: [bold added]

Americans want to grow old in their own homes. But pursuing that dream has gotten harder, and is putting huge financial and emotional strains on families.

In Nebraska, Christine Salhany spends about $240,000 a year for 24-hour in-home care for her husband who has Alzheimer’s. In Illinois, Carolyn Brugioni’s dad exhausted his savings and took out a home-equity line-of-credit to pay for home healthcare.

Traci Lamb closed her business to take care of her mom in Florida. And in California, Cheryl Orr delayed retirement to help pay for care and home modifications for her wife, who has dementia.

Soaring costs of in-home care, medical advances that extend lives but require ongoing help, and the growing ranks of older baby boomers are creating new pressures. Spouses, adult children and siblings are putting their lives on hold to care for relatives, wrestling with sleep deprivation and constant worry. Families are draining savings to hire help, pay for medical care, and modify homes...

The cost of paid in-home care has soared in recent years. The 2023 national median cost of a home health aide, hired through an agency, stood at $33 an hour, up from $20 an hour in 2015, according to Genworth, a long-term-care insurance company. Those needing round-the-clock in-home care can expect a median cost of about $290,000, which is more than double the annual median cost of a private room in a nursing home facility and four times the annual median cost of a private room in assisted living, according to Genworth.

Very few elderly have the nearly $1,000,000 in retirement savings to pay for long-term at-home care for, say, four years. Borrowing against, then selling the family home is an option if the patient is willing to move to assisted living.

I know three families that have tapped the value of their house; they were fortunate to have lived in the Bay Area, where suburban tract homes have appreciated by over a million dollars if held for at least 20 years. They have had to move away but consider themselves lucky to possess such a valuable asset.

If any politician can come up with a credible solution, he or she would win in a landslide.