������Ƶ

How to plan for aging in Michigan or take care of others: What to know

In a state hobbled by a shortage of health care staff and social workers, Laura Dykstra, 70, a paid caregiver for three people in their 90s, plans to work until ‘God says “Come home.”’ She and others, though, say they’re anxious about the future and services they might one day need. Photo credit: Brayan Gutierrez for Bridge Michigan.

by Robin Erb (Bridge Michigan)

As the first of its members blow out 60 birthday candles this year, Generation X can lean into its defining characteristics — resourcefulness and independence — to remain active and financially stable for years to come.

The key: Plan before a crisis.

And for the generation that cut its teeth on the Cold War and grunge, Gen X can draw from the experiences of their parents who are increasingly trapped in houses with stairs they can no longer climb and with yards they can no longer tend. In the worst cases, they are forced to make difficult choices after an unexpected health crisis.

“When your back is against the wall, your choices start closing in on you,” said Rosemary Buhl, an elder law and estate planning attorney with East Lansing-based Buhl, Little, Lynwood & Harris.

The key, Buhl and others told Bridge, is to plan and to make changes while you’re physically, financially and emotionally able to do them.

Pick the decision-makers

Buhl has a running joke in her house: When the kids turn 18, they are handed power-of-attorney papers.

It crucial, at any age, to have trusted people who can act in your place in the case of the unthinkable: a debilitating accident or health crisis, or worse, Buhl said: “If you need help with your financial decisions, who helps you? And if you can’t make your own medical decisions, who speaks for you?”

Those decisions are among the most important in the larger estate planning process — and important to get down on paper — no matter what age or health.

Some attorneys or service providers offer free documentation to name powers of attorney, but services vary. And advanced directives paperwork to outline your preferences in a health crisis can be found at .

Tackle that debt

Mortgages, credit cards, student loans — it all adds up to an average debit for Gen X, including an average of more than $9,200 in credit card debt alone. Driven by the average $283,677 in mortgage debt, Gen Xers have the highest debt of any generation, according to the credit bureau, Experian.

The Great Recession took a massive swing out of retirement accounts years ago, and now they face the cost of caregiving for older family members at the same time many are paying their children college tuition bills.

Is it any wonder, then, that more than half of Gen Xers say they won’t be financially ready to retire when they’d want? That according to research from Northwestern Mutual.

The Milwaukee-based financial services company recommends trying to replace around 80% of their pre-retirement income, and Americans reported they feel they need nearly $1.3 million to retire.

That “magic number” calculation varies on when and where you’ll retire and the kind of lifestyle you want, Northwestern advises.

“People outlive their money,” said Paula Cunningham, of AARP Michigan. “They think they’re going to retire when they’re 62 or 65, but if you’re going to live 80 to 85 or 90, you’ll outlive your savings.”

Those who struggle to save or set up a 401K may talk to their employer about diverting part of their paycheck to a savings account. Even a few dollars a month can add up in the long-run, she said.

Consider long-term care insurance

Such insurance can be out of reach for many, and it gets more expensive with each passing birthday.

But seven of 10 people will need long-term care in their lifetime, according to life insurance company Genworth. Those costs can quickly deplete savings: In Michigan, the average cost for home help is now $5,911 a month and for a semi private nursing home room, $10,570.

If the federal government overhauls Medicaid, that could dramatically reshape the government role in paying for nursing homes and other long-term care, Buhl said.

Have ‘careversations’

Cunningham at AARP said people should have “careversations” when the family next meets, usually over a holiday. AARP suggests making Thanksgiving a mental reminder for these conversations.

“It a conversation built around care and love and respect,” Cunningham said.

“What happens if someone falls and breaks a hip? Who will be the providers? What do you do with the house? Should you buy long-term care insurance, and how do you pay for it?”

The entire conversation doesn’t have to happen at once, she said; rather, it a conversation starter that will take place over time.

“What happens if you need a wheelchair, can you get through the doorway or to the shower?”

Count your stairs. And sidewalks.

Look around. That house with all the stairs and the long driveway might be fine right now, but think forward 20 years. Will your parents still be able to shovel the sidewalk or make your way to the washing machine in the basement?

Consider your own home, too, as well as the community you live in. Is it walkable if you no longer drive? Is public transportation reliable and plentiful?

“All the things you think about for your parents — those are your considerations, too,” Pat Rencher, founding publisher of Urban Aging News, which provides news and resources for older residents in southeast Michigan.

by Sara Swanson

Sara Swanson is an editor, writer and a founder of the Manchester Mirror.