Granny Pods: Caring for Aging Relatives in Your Own Backyard

Editor’s Note: This post was originally published on March 2, 2016. Housecall continues to share this piece due to ongoing requests and reader interest.

Caring for aging parents is a growing concern for many Americans. For those among the Sandwich Generation, homeowners typically in their forties who are responsible for their own families and their aging parents, what to do with grandma or grandpa is always a trying, stressful question to answer. While nursing homes may feel wrong or unnecessary, and having the elderly family member move into your family’s home may have its own inherent difficulties, the Granny Pod is here to finally provide a nice middle ground option for families in need.

Granny Pods, aka MedCottages, are 12 x 24-foot pre-fabricated pods that sit conveniently in one’s backyard. The structures hook up to existing plumbing and electrical systems and allow both the caregiver and senior citizen to have their own space while still being available and connected. The pods are quickly growing in popularity and are a win-win for both parties: the aging family member has his or her own space, while the caregiver doesn’t have far to travel to assist family members in case of an emergency.

The mobile homes are built with safety in mind and include many of the basic amenities any adult would need. They include a small kitchen, a bedroom and a bathroom all designed in a small scale space with easy access in mind. The bathrooms are handicap accessible with railings and safety features, while the floors are padded to help lighten the load on joints.

Not only are they safe, but they’re tech-savvy, too! Granny Pods can incorporate webcams for family members to monitor from afar. Even more impressive, robotic features can monitor vital signs, with alert systems armed to notify caregivers should a problem arise. The air can be monitored for contaminants and reminders can be sent to the inhabitant to remind them to take pills or supplements accordingly.

The MedCottages encapsulate all the functions of a proper nursing home, while providing grandma or grandpa with the freedom and privacy they may still desire.

For more information, visit the MedCottage Facebook page.

So what do you think – would you purchase a Granny Pod for an aging relative? Tell us your thoughts!

Courtesy of: Blog.rismedia.com

 

The Importance of Home Equity in Retirement Planning

We often discuss the difference in family wealth between homeowner households and renter households. Much of that difference is the result of the equity buildup that homeowners experience over the time that they own their home. In a report recently released by the nonpartisan Employee Benefit Research Institute (EBRI), they reveal how valuable equity can be in retirement planning.

Craig Copeland, Senior Research Associate at EBRI, recently authored a report, Importance of Individual Account Retirement Plans and Home Equity in Family Total Wealth, in which he reveals:

“Individual account retirement plan assets, plus home equity, represent almost all of what families have to use for retirement expenses outside of Social Security and traditional pensions. Those families without individual account assets typically have very low overall assets, so they have almost nothing to draw from for retirement expenses.”

The report echoed the findings of a working paper, Home Equity Patterns among Older American Households, authored by Barbara Butrica and Stipica Mudrazija of Urban Institute. Fannie Maehighlighted these findings for their blog The Home Story this past winter, quoting Butrica and Mudrazija:

“For most adults near traditional retirement age, a home is their most valuable asset — dwarfing retirement accounts, other financial assets, and other nonfinancial assets. Although relatively few retirees tap into their home equity, having it provides financial security… In fact, many retirement security experts argue that the conventional three-legged stool of retirement resources — Social Security, pensions, and savings — is incomplete because it ignores the home.”

USAToday interviewed two area experts to comment on the EBRI report. Randy Bruns, a private wealth adviser with HighPoint Planning Partners, agreed with the findings:

“Social Security and home equity are major pieces of the retirement puzzle.”

Wade Pfau, Professor of Retirement Income at The American College of Financial Services and author of “Reverse Mortgages: How to use Reverse Mortgages to Secure Your Retirement,” said having the equity without a plan to use it won’t help:

“Home equity is a very important asset for American retirees, and so it is important to think about how to make best use of home equity in retirement planning.”

Bottom Line

Whether you use the equity in your home through a reverse mortgage or by selling and downsizing to a less expensive home, it should be a crucial piece of your retirement planning.

Baby Boomers Finding Freedom in Retirement

Within the next five years, Baby Boomers are projected to have the largest household growth of any other generation during that same time period, according to the Joint Center for Housing Studies of Harvard. Let’s take a look at why…

In a recent Merrill Lynch study, “Home in Retirement: More Freedom, New Choices” they surveyed nearly 6,000 adults ages 21 and older about housing. 

Crossing the “Freedom Threshold”

Throughout our lives, there are often responsibilities that dictate where we live. Whether being in the best school district for our children, being close to our jobs, or some other factor is preventing a move, the study found that there is a substantial shift that takes place at age 61.

The study refers to this change as “Crossing the Freedom Threshold”. When where you live is no longer determined by responsibilities, but rather a freedom to live wherever you like. (see the chart below)

As one participant in the study stated:

“In retirement, you have the chance to live anywhere you want. Or you can just stay where you are. There hasn’t been another time in life when we’ve had that kind of freedom.” 

On the Move

According to the study, “an estimated 4.2 million retirees moved into a new home last year alone.” Two-thirds of retirees say that they are likely to move at least once during retirement.

The top reason to relocate cited was “wanting to be closer to family” at 29%, a close second was “wanting to reduce home expenses”. See the chart below for the top 6 reasons broken down.

Not Every Baby Boomer Downsizes

There is a common misconception that as retirees find themselves with fewer children at home, they will instantly desire a smaller home to maintain. While that may be the case for half of those surveyed, the study found that three in ten decide to actually upsize to a larger home.

Some choose to buy a home in a desirable destination with extra space for large family vacations, reunions, extended visits, or to allow other family members to move in with them.

“Retirees often find their homes become places for family to come together and reconnect, particularly during holidays or summer vacations.”

Bottom Line

If your housing needs have changed or are about to change, call Linda so I can help with deciding your next step.