Are You Part of the Unprepared 85%?

“Failing to plan is planning to fail,” Benjamin Franklin once said.

According to a University of Michigan study, the vast majority of those 50 years and older feel it is important to remain in their current homes for as long as possible, but only 15% have given considerable thought about what that may entail.

In other words, 85% have a desire, but no plan. This is the unprepared 85%.

The Flaws of Aging in Place as a Be-All, End-All Strategy

Aging in place has its merits. First, it maintains the status quo. The psychological and emotional ties to home are not severed. This strategy allows one to maintain existing networks of friendships, continue attending familiar places of worship, and stay connected to healthcare providers.

There can also be financial advantages, taxes being one key area. Some states and counties offer financial incentives to age in place. For example, in California, real estate taxes are based on the purchase price, not the current assessed value, and have capped annual increases. Another financial advantage is related to the capital gains tax. If a couple lives in a home and one of them dies, the home value is stepped up to the current assessed value for capital gains purposes. Aging in place can be less expensive more broadly as well. Senior living settings are expensive and any effort to de¬lay or avoid institutional care will save money.

However, the overwhelming reality for most people is that it is unrealistic, especially if you focus on optimizing health as you age. Preferences and needs change over time. A home that is the perfect size may seem too spacious in the future. Key health considerations may take on greater importance.  Places change, too. Traffic, crime, inflation, and turnover in the neighborhood, among other factors, can dampen one’s enthusiasm for a place.

To expect one place to be the perfect place under all circumstances in the future is a failure of the imagination. To make a forward commitment to one home may come to be a decision you regret.

Place Planning is More than Thinking About the Physical Dimensions of Place

Aging in place conversations often quickly focus on the physical elements of place. Is there a main floor bedroom and bathroom? Are there wider doorways for a wheelchair to pass through? Lever-style door handles? Bathrooms with slip-resistant tiles and blocking for grab bars?

Depending on one’s situation, these physical components of place are important, but in everyone’s situation, they don’t capture the complete picture. Does your place nudge you to live a desired healthy lifestyle, such as being active, eating healthy, and sleeping well? Does your place provide social connections to keep you supported and stimulated today and tomorrow? How does your place fit within your financial plan for a long life?

If you don’t think about all the factors that matter, you may be abruptly surprised when your desire to age in place unexpectedly fails in real life.

Planning is Different than Executing

Why are only 15% of people investing time to plan around the viability of aging in place? No doubt, psychology and human nature play a big part. As Tim Urban of the Wait but Why website and TED talk “Inside the Mind of a Master Procrastinator” (viewed over 70M times) highlights, we often get hijacked by the “Gratification Monkey” but, with deadlines, we panic and the “Panic Monster” spurs motivation. However, in a world without deadlines and an era of longer lives with a greater variance of outcomes, insufficient planning can come with significant downsides. Some mistakes are difficult to undo.  

In this sense, it is important to appreciate that where you live shapes your future self. This decision matters a lot. It can be the difference between thriving or surviving.

I believe that one of the reasons people don’t plan is because it assumes that it will usher in unwanted change. Not so fast. There is a critical distinction between planning and executing. Planning can help you see the pros and cons of a living situation today and into the future. It doesn’t necessarily translate to meaningful change now or in the future. Having a vetted plan will certainly put you in a better situation to execute quickly and confidently when and if the time is right.

So, do yourself a favor: don’t be part of the unprepared 85%. Your future self (and probably your loved ones!) will thank you.