Retirement planning: essential questions about long-term living arrangements

Planning for retirement isn’t just about managing your finances, it’s about considering how you want to live and where. Have you thought about the type of support you might need as you age, or what facilities you’d like close by? Where you live has a huge impact on your quality of life, so it’s worth asking: is your current setup the right fit for the years ahead?
To help you think this through, we’ve put together a guide with some key questions to consider when planning your future. These questions aim to uncover what matters most to you and identify any challenges you might face. And if you’re unsure where to start, reaching out to experts like financial advisors or legal professionals can provide valuable guidance.

What can you afford long-term?

Long-term affordability in retirement planning involves understanding your desired lifestyle, estimating future expenses (like healthcare, housing, and leisure activities), and accounting for inflation. It's important to create a detailed budget that outlines your projected income streams in retirement, such as social security, pensions, and investment returns. 

• Beyond your state pension, do you have private pensions or investments? Take into consideration the assets you have, such as property. Understanding the full scope of your financial resources will help you make practical decisions for your retirement.
• Where do you want to live? It's essential to evaluate housing costs, utilities, and other monthly expenses as part of your retirement budget.
• Unexpected expenses may arise. Consider whether you have a financial cushion for emergencies, healthcare, or other unforeseen needs.
• Explore options like long-term care insurance, savings, or other financial resources to help cover care facility expenses.

It may be helpful to consult an independent financial advisor to help you determine your long-term finances and create a plan to cover living expenses.

What happens if you decide you no longer want to drive?

When planning for retirement, it’s essential to consider your mobility, staying mobile and independence can really benefit your quality of life and planning ahead allows you to stay in control. As time goes on, your desire to drive may diminish, so identifying alternative transportation options beforehand is going to be really helpful. 

• Is public transportation accessible and convenient in your area? If not, would you consider relocating to a place where it is more convenient?
• Are there any community programs that can assist with transportation for elder residents?
• Do you have family, friends, or neighbours who can help with transport or if you will need to rely on paid services? Think about how you would arrange transportation and the associated costs.

Do you have your legal documents in order?

Legal preparation plays a crucial role in retirement planning, as it helps ensure that your wishes regarding asset distribution and healthcare decisions are respected as you enter this new phase of life. By establishing legal documents, you can protect your assets and provide clear instructions for your care. This proactive approach gives you the peace of mind you deserve, knowing that you've laid the groundwork for a secure retirement that reflects your values and intentions.

• Does a trusted family member or friend have Power of Attorney? Are they informed and ready to make decisions on your behalf if necessary?
• Do you have an up-to-date will that outlines how you want your estate managed? It’s recommended that this be reviewed periodically and updated as your circumstances change.
• Consider preparing advanced directives or living wills to guide your family in the event of medical decisions.

Will you need any home modifications?

Many people prefer to stay in their current homes throughout their retirement. It’s a decision that is unique to you and your circumstances and one that needs to consider practicalities.

Is your home equipped to handle mobility issues if you or your partner face mobility issues? How easily can modifications like ramps, grab bars, or a stairlift be installed?

Who will coordinate in-home care services should you require assistance? How will these services be funded, and who will handle the arrangements?

Consider the potential costs associated with making your home accessible and the expenses of any additional care.

What are your options for moving out of your current home?

When planning for long-term retirement, it's important to take into account the possibility that your current home may become unsuitable for your needs as you age. Alternative living arrangements may become essential for ensuring comfort and accessibility in later years. Whether it's moving to a smaller home, a retirement community, or assisted living, having a plan in place allows you to stay in control and can ease the transition while maintaining your quality of life. Integrating these housing considerations into your overall retirement planning will ensure financial stability as you explore different options that align with your changing needs. Losing a spouse can have a significant economic and medical impact. Plan for the potential of living alone or requiring additional support.

• Moving out of a longtime home can be emotional. Factor in time and support to help you or a loved one adjust.
• What different living options would you consider? Having multiple options in your plan will help you adjust to various circumstances, ensuring you always have the level of support you need.

Who could help you manage temporary care arrangements?

Sometimes, a temporary stay in a care facility may be necessary for recovery or respite. 

• Is there someone that can help you manage your temporary care arrangements? Have you talked to them about your preferences?
• Who will look after your home, pets, or spouse if you need to be away temporarily? Discuss these potential arrangements with family members and neighbours you may need to consider hiring support.
• If needed, how will you finance a temporary care stay? Short-term care can be costly, so understanding how this would fit into your budget is crucial.

What if you need to move into a care facility?

Long-term care can seem daunting to consider, but it’s essential to have a plan, especially when it comes to retirement living. As you age, your need for assistance with daily activities may increase, and having a solid plan in place will allow you to maintain your independence and quality of life. Whether it involves exploring assisted living communities, in-home care options, or even considering a care home, thinking ahead can help you alleviate stress and provide peace of mind. It’s important to factor in both health care and lifestyle preferences, allowing for a comfortable and fulfilling retirement.

• Who will keep and maintain your current residence? Depending on financial considerations and family needs, it’s wise to decide whether to sell, rent, or retain your property.
• What happens if your spouse has different needs? It's a good idea to think about who can help support them if tey are still going to stay at home.

Final thoughts

Thinking about where you’ll live in retirement takes time and careful thought, but it’s worth it to make sure your future feels right for you. Asking yourself the important questions now can give you confidence that your plans align with what you value most. It can also help to speak with professionals, whether financial, legal, or healthcare experts, to get a clearer picture of what’s possible. And don’t forget to involve your family or support network in the conversation. Talking things through can be a valuable part of the process, helping you feel prepared and excited for the years ahead.