How to Live a Good Old Age
Living a good old age is a goal for most people. Everyone looks forward to a happy and active retirement.
Yet, not many consider how poor health or the inability to pay for routine or ongoing health or medical care needs or daily living expenses can negatively impact them, their family, or aging parents.
If you haven’t thought much about what living a good old age means to you or creating a financial plan to retire comfortably, there’s no time like the present to start.
Learning how to build a personal financial safety net, self-directing your care rather than being in a self-directed government Medicaid plan, and planning for long-term costs are three steps to investigate. These actions are especially important for family caregivers.
Roadblocks to Planning
It’s difficult for healthy adults to understand or recognize the effects of aging unless they are in regular contact with elders who might have health problems or financial struggles.
Many individuals are not touched by aging, health problems, or experience a death in the family until midlife or much later.
One roadblock to planning for a good old age is the busyness of daily life. Juggling work and career, raising a family, and caring for aging parents can be time-consuming and stressful.
A busy schedule can make it difficult to focus on life, personal, or family priorities.
Family caregivers can be swept into responding to an elderly parent’s problems for years, until they decide that the situation is unworkable.
If you’re not a family caregiver yet, you have time to learn about elder care and estate planning so you can be prepared and avoid responding in a crisis.
Creating health and financial strategies for old age and elder care can seem complicated if you’ve never done it before. So, let’s look at three ways to start.
1 Creating a Personal (Not Government) Financial Safety Net
Creating a personal financial safety net that does not rely on government programs is time-sensitive if you are nearing retirement, are retired, or have retired parents or grandparents.Many aging parents don’t want to be a burden to their children.
In the U.S. The Old-Age and Survivors Insurance Trust (OASI) is the legal name of the financial account that funds Social Security’s retirement and survivor benefits.
According to the Trustee Report of 2026, the OASI’s fund reserves will be depleted in the 4th quarter of 2032, or about 6 years from now. This will significantly affect older people.
The trustees report that “continuing program income will be sufficient to pay 78% of total scheduled benefits.” This translates into a 22% decrease in the amount of a monthly Social Security payment.
A 22% decrease in Social Security is a BIG DEAL. This loss of income can turn a good old age into a source of worry.
Waiting six years to see whether, and by how much, Social Security benefits may decrease is not a good plan.
- If you’re planning to retire in the next 6-10 years, what is your plan if your projected Social Security payments are decreased by 22%? Will you continue to work or retire?
- How will a 22% cut in Social Security benefits affect your elderly parents if their only retirement income is Social Security?
- And if you are younger, is it wise to believe that Social Security will be available when you retire? Do you have a backup plan?
As you might imagine, this is not a popular topic to discuss. Unless you follow news about Social Security, you may not be aware that this is a serious near-term problem.
To make the math easy, let’s round 78% down to 75% to see how this might affect a good old age.
- If you receive $100 per month today, you will receive $75 per month after the reserves are depleted.
- If you are employed today, how would a 25% pay cut tomorrow affect you?
Are there unnecessary expenses you can cut out of your monthly budget? What bills might you not be able to pay?
To become better informed about how this might affect you, or your elderly parents, read the 2026 Social Security and Medicare Boards of Trustees Report.
Protecting Yourself and Educating Elderly Parents
Potential cuts to Social Security and Medicare are reasons that creating a financial safety net plan for elder care today is one of the most important steps you can take to plan for yourself and to initiate a discussion about paying for care with aging or elderly parents.
In addition to offering information about the Social Security trust fund, the Trustees report also confirms that,
“The Hospital Insurance (HI) Trust Fund will be able to pay 100 percent of total scheduled benefits until the second quarter of 2033, one quarter earlier than last year. At that point, the fund’s reserves will become depleted and continuing program income will be sufficient to pay 89% of total scheduled benefits.”
The Hospital Insurance Trust Fund finances Medicare Part A, which covers inpatient hospital stays, the initial days in a skilled nursing facility, hospice care, and some home health services.
What steps can you take to create a personal financial safety net so that you can live a good old age and be less affected by potential cuts to Social Security and Medicare Part A?
- Meet with aging parents to discuss finances, monthly budgets, and whether they have (or have not) saved for retirement.
- Look at your own monthly budget, spending habits, and how you are saving for retirement.
- Women, more than men, need a good retirement plan.
- Make a plan to save and invest.
- Eliminate unnecessary expenses on things you want, but don’t really need.
- If you’re already on Social Security, consider selling or downsizing a home that has you property-rich and cash-poor.
How to Plan for Aging and Protect Yourself from Problems You Don’t Learn About Until It’s Too Late
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Watch Over 1,000 Videos About Caregiving, Aging, and Health on Pamela’s YouTube Channel
2 Self-Directed Care (Not Medicaid)
A non-governmental definition of self-directed care is making choices and saving money to pay for care, rather than relying on government programs with low-income or poverty-level eligibility restrictions, such as Medicaid.
While Medicaid is a much-needed program for low-income elderly and many others, it is a program of last resort.
Medicaid is a source of assistance when all regular options and private financial resources have been exhausted. Medicaid, known by different names in different states, has health and financial qualifications for the elderly.
On the other hand, self-directed care not related to Medicaid means:
- Having the financial means to choose your health plan whether you are currently employed, 65 or older, or retired.
- Choosing your health providers, listening to their recommendations, doing your own research, and deciding what’s best for you.
- Making your own decisions to the degree possible, considering federal and state regulations for health insurance and medical care.
- Alternatively, choosing a private pay option like concierge medicine.
Protecting Yourself and Realizing Aging Parents May Already Have Limited Options
If you are a caregiver for a parent, you may be seeing the effects of health conditions or physical weakness firsthand. You might be spending hours helping parents or financially contributing to their care.
Some parents may already have limited options due to income restrictions, multiple health conditions, and the Medicare plan they selected, while others planned well.
So what can you do to live a good old age and be in control of your health?
- If your parents planned well, learn from them. If you’re not sure, talk to your parents about their financial situation. Look at income and expenses.
- If you are a solo ager, widowed, divorced, or never married, look at all aspects of your health, plus financial and legal planning since you may have to make your own plan with no family support. Consult experts.
- Familiarize yourself with how the state Medicaid program works, including timelines for application approval.
Be proactive about your health:
- If you have health insurance, use it. Establish care with a primary care physician and schedule and attend annual checkups and preventive care visits.
- Follow physician recommendations for bloodwork. Learn about your numbers for cholesterol, triglycerides, blood sugar, and actions you can take to improve them.
- Take an interest in preventing health problems instead of responding to them.
- Identify health conditions early before they become permanent or serious so you can be proactive.
- Establish a relationship with a primary care physician who knows you, and you know them. Stop running to the emergency room, an emergent care clinic, or a clinic at your local grocery store.
- Consider doing all the things you’ve heard of that are good for you, like eating healthy foods, exercising, maintaining a good weight, reducing stress, having your teeth cleaned every 6 months, building muscle and cardiovascular capacity, and more.
- If you’re not yet on Medicare. The Medicare plan you choose at age 65 – original Medicare or a Medicare supplement will have a BIG impact on access to providers. So, it’s important to become educated about this choice before you make it.
Long Term Care Planning
How familiar are you with long-term care planning? Many people associate long-term care with Medicaid. This is accurate.
Depending on the state, Medicaid pays for some types of in-home assistance, some assisted living homes, and long-term care in nursing homes.
A more proactive definition is long-term care planning so you have choice and control over where, how, and who provides your care. If you don’t already know, Medicare does not pay for the type of care most elderly people need, which is usually provided by spouses or family caregivers.
Caregivers keep parents at home and out of assisted living, memory care, and nursing homes by delaying significant monthly expenses ranging from $5-15.000 per month. However, offering this type of assistance to parents is not always a forever thing.
How Does Long Term Care Insurance Work?
Long-term care insurance pays for non-medical care that Medicare does not. Many people assume Medicare pays for all costs of care after age 65. It does not.
For example, non-medical in-home caregivers, care managers, monthly fees for assisted living, memory care, nursing homes, or day programs. Some long-term care insurance plans pay for home modifications and home safety equipment.
Long-term care can be very expensive. As previously mentioned, when individuals don’t have financial resources to pay, Medicaid is the alternative.
Mandatory State Long-Term Care Plans
Because so many individuals receive Medicaid benefits and tax revenues can’t keep up, states are beginning to deduct mandatory long-term care contributions from payroll checks to pay for long-term care expenses.
Those who contribute and continue to live in the state with the program will have a defined amount of money to pay for long-term care services.
For example, the state of Washington already has the deductions in place through a program called Washington Cares.
New York, California, and Colorado may be the next states to implement programs. But know that the programs aren’t portable. So if you contribute in Washington and then move to a state that doesn’t have a plan, your long-term care contribution likely won’t follow you.
Similar to Social Security, you might contribute to a program that you’ll never receive financial benefits from, or your benefits may be reduced.
So what can you do about long-term care planning?
Self-direct your long-term care to live a good old age.
Buy your own plan through an employer or on the open market as early as possible so the premium is low. Consider this another way to create a personal financial safety net. There are stand-alone long-term care insurance plans, as well as plans that combine life insurance and long-term care.
You’ll want to consult a financial planning firm whose advisors hold life and health insurance licenses to make the best choice. This way you have the best of both worlds: a financial planner to help you build a personal financial safety net and someone who can consult on a variety of insurance products that may be beneficial to you and your family.
Buying Long Term Care Insurance
If your company offers long-term care insurance, strongly consider buying it for yourself and your elderly parents, even if they reimburse you for the premiums.
Long-term care insurance on the open market is a non-guaranteed issue, which means you can be turned down for a policy if you have certain health conditions. Or you might pay a higher rate.
The longer you wait to purchase, the greater the cost, especially if you have health conditions.
So there’s a time frame in which buying long-term care insurance makes sense and a time frame in which applying for state Medicaid makes more sense due to premium costs and health problems.
So, if you self-direct your healthcare and buy your own long-term care insurance plan that allows you to make choices about your care — it’s your plan regardless of which state you live in. And states may not require a mandatory payroll deduction if you can prove you have your own plan.
The Best Scenario for a Good Old Age
The best way to enjoy a good old age is to prioritize your health so you can do the things you want. It’s when you choose how and where to receive care, including who will provide it. It’s when you don’t have to rely on Medicaid or be limited by care from Medicaid providers.
Medicaid may be the choice your elderly parents are faced with if they didn’t financially plan, but this doesn’t have to be your choice.
Seek education. Gain knowledge and experience. Create a personal financial safety net. Be proactive to self-direct your health and health care so you have more choices.
Share what you learn with your family members, children, and friends so they can make more informed choices about their future.
Invest in your health and financial future so you don’t have to gamble on the hope of government benefits that may not be available.
Are You Looking for Support For Caring For Aging Parents or Yourself? Schedule a 1:1 or Family Consultation with Pamela D Wilson today.
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