When Dan and Debbie were in their late 60s, they started looking at new houses as they considered downsizing from the large family home they’d lived in for more than three decades.

“We thought we should consider our future and what we might need as we get older and frailer. But every property we looked at just made us fall more in love with our current place. It’s home. And we realised we never wanted to leave,” Debbie said.

“Now we’re looking at making changes to our existing property, so we can grow old here.”

Like an increasing number of Kiwi seniors, Dan and Debbie want to ‘age in place’. Simply put, this means for as long as possible living in one’s own home and community safely, independently, and comfortably, regardless of age, income, or ability level.

A raft of benefits

For many older people, ageing in place comes with clear physical and mental benefits, not least due to the comfort of familiar surroundings and long-held routines built around a specific community.

Research shows that seniors who remain in their homes for longer have better health outcomes, lower risk of depression, higher life satisfaction, and stronger social connections. Ageing in place also preserves the sense of identity and belonging that seniors have with their home and neighbourhood, as well as a sense of autonomy, which can enhance their self-esteem and well-being.

Downsizing isn’t always the answer

In many cases, homeowners who’ve assumed they’ll achieve a generous cash injection from selling their current home and buying something smaller can end up disappointed. Properties with the features and mod-cons that will accommodate ageing inhabitants can be in the same price range as larger family homes, particularly ‘well-loved’ ones that haven’t been touched for a decade or longer. Once moving costs are factored in, people can discover they’re in the same position financially, if not worse off.

All of this resonates with Bruce, aged 80, who explored selling his current home so he’d have money to support a more comfortable retirement.

“The only way it would work financially is if I moved to a different area. But I’m very engaged in my community and my son and grandchiIdren live just around the corner. If driving ever became an issue for me, I’m within walking distance of everything I need,” he said.  

 

Preparation is key

Remaining at home for the long haul might not suit everyone. Those with serious physical conditions or cognitive disorders could be safer and more comfortable living in a more supportive environment, such as residential aged care.

It’s also important for sprightly seniors to recognise that they might not always stay that way. This doesn’t preclude ‘ageing in place’, but it does require a plan for how their home and lifestyle might be modified to ensure a safe and accessible environment that meets changing needs.

For Dan and Debbie, this meant considering how they could improve the current layout of their living spaces, including potentially adding ramps and handrails, and reconfiguring a separate office into a self-contained studio in case live-in help was ever required.

Is ageing in place affordable?

One of the main barriers to ageing in place is the lack of financial resources to cover the costs of home modifications, care services, or living expenses. Many seniors have limited income or savings and may struggle to afford the expenses associated with ageing in place.

This is precisely the type of situation that home-equity release products are designed for. Lifetime Home allows senior homeowners to tap into their equity in exchange for regular income payments, which could help meet the expenses of future-proofing their home to suit changing needs over time.

 

A life-enhancing opportunity

Dan and Debbie were fortunate enough to have savings they could use to alter their home. However, this meant they had less than they’d anticipated to live on for their remaining years. That’s why Lifetime Home appeals.

“Since we aren’t downsizing in the traditional sense, it seems like a no-brainer to simply apply the same mentality to our current home. Lifetime Home would give us access to money we might’ve freed up if we’d sold and bought something smaller and cheaper. But this way we’d get to stay in the house we love. It really feels like a win-win.

“It’s really comforting to know exactly how much equity we’d retain in our home from the word go. And our kids are very supportive. They have decent jobs and their own homes, so they’re keen to see us living it up while we still can!” Dan said.

With their home valued at $1.5 million, Dan and Debbie could receive an annual income of approx. $34,050 (after fees) or $1,310 (after fees) every fortnight for ten years.

 

The best of both worlds

Bruce was delighted when he heard about Lifetime Home, which would allow him to remain in his beloved neighbourhood and enjoy a generous income to supplement NZ Super.

“I appreciate the time and effort Lifetime spent making sure I understood everything and that I’d talked it through with my son and had independent advice first. Because I couldn’t sign up fast enough!” Bruce said.

Bruce’s home is valued at $900,000, meaning he could receive an annual income of approx. $20,950 (after fees) or $805 (after fees) every fortnight for ten years.

If you’re interested in how Lifetime Home could help your clients remain in their home for life, get in touch. We’d love to chat.

You can contact one of our friendly team either by phone or email.

The case studies referenced in this article are hypothetical in nature and provided for illustrative purposes, only. Where based on scenarios involving our customers or prospective customers, names and details have been changed to protect privacy.