WE’RE LIVING LONGER. IS YOUR FINANCIAL PLAN READY?
It’s been a big month for the grand ol’ U.S. of A., celebrating 250 years of independence. But while we’re reveling in how far the country has come, there’s another shift quietly happening in the background. We’re getting older as a nation too.
By 2030, when all boomers will be older than 65, older Americans will make up 21% of the population, up from 15% today. Compare that to 1950, when only about 8% of the population was over 65, according to Statista, and it’s clear we're entering a very different era.
Living longer is something to celebrate, but it also brings new questions, like:
How will I pay for healthcare in retirement?
What happens if I need long-term care?
How do I stay independent for as long as possible?
At Alia, we’re also seeing retirement conversations change. As a result, we’re not just preparing clients to save enough to retire. We’re building financial strategies that support a longer life and more fulfilling next chapter.
Financially planning for this phase of life boils down to one main priority: protecting your independence for as long as possible while making sure you have the resources to handle what life may bring.
For most people, that means going beyond a basic retirement budget and thinking broadly about these core planning areas:
Healthcare
Long-term care
Legal planning
Housing
Support systems that will matter later in life
Taking Care of Your Future Self
When it comes to aging, true peace of mind means knowing you can afford the care you want and that your voice will always be heard, even during a medical emergency.
Healthcare Proxy: Appointing a trusted agent ensures your treatment preferences are honored for free if you become incapacitated.
HSA Funding: Aggressively contributing to a Health Savings Account provides triple-tax advantages for medical and long-term care expenses.
Investigating Long-Term Care Options (LTC)
The greatest threat to financial dignity is the high cost of medical and daily assistance.
Home Health Aides: Costs average roughly $35-$50 an hour depending on your location.
LTC Insurance: Traditional or hybrid policies can offset out-of-pocket costs and protect your savings from being depleted.
Evaluate Alternatives: Research state-level Medicaid programs, if necessary, or Continuing Care Retirement Communities (CCRCs) in advance to understand your eligibility. Here’s how CCRCs work and 10 questions to ask them.
Locking Down Legal Protections
Without proper documentation, a sudden health decline can put others in charge of your decisions and burden your family.
Durable Power of Attorney (POA): Designates a trusted individual to manage your financial matters immediately or upon incapacitation.
Healthcare Proxy: Appoints someone to make medical decisions on your behalf if you cannot.
Living Trust/Wills: Ensures your assets are managed and distributed exactly according to your wishes.
Building a Solid Housing Strategy
More than affording a place to live, this is about making sure your home—wherever that ends up being—supports your independence, safety and way of life.
Home Affordability Over Time: Evaluate not just current housing costs, but long-term expenses like property taxes, insurance, utilities and maintenance to ensure your home remains sustainable throughout retirement.
Maintenance Reserve Fund: Set aside dedicated savings for ongoing and unexpected home repairs, such as roof replacement, and HVAC systems or plumbing, to avoid disrupting retirement income when costs arise.
Downsizing or Relocation Strategy: Explore whether staying in your current home, downsizing or relocating closer to family or services may better support both your financial goals and future care needs.
Another must-do …
Create a Realistic, Inflation-Adjusted Budget
As you age, your financial priorities will likely shift. Expenses that once went toward travel or hobbies may gradually be replaced by healthcare, home maintenance and daily support.
Debt Payoff: Aim to eliminate your mortgage and other high-interest debts before fully retiring.
Budget Rules: Adopt budgeting strategies like the 50/30/20 Rule to balance essential needs, wants and savings.
Home Modifications: Set aside funds for structural home updates (e.g., walk-in showers, ramps) so you can safely remain in your home.
And finally …
Financial planning isn’t something you do once, a set-it-and-forget-it action. Your investments, insurance and income strategy should be reviewed regularly to account for inflation, changing health needs and shifting family circumstances.
Planning for Every Stage of Your Life, Together
Whether you’re preparing for retirement or beginning to think about your own future healthcare needs, we’re here to help you navigate those decisions with compassion, clarity and expertise.
Because aging with dignity isn’t just about growing older.
It’s about having a financial plan that allows you to do so on your own terms.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.
The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
Government bonds and Treasury bills are guaranteed by the US government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
The fast price swings in commodities will result in significant volatility in an investor’s holdings. Commodities include increased risks, such as political, economic, and currency instability, and may not be suitable for all investors.
Disclosure: Content in this material is for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. All investments involves risk including loss of principal. No strategy assures success or protects against loss.
The content provided herein is based on our interpretation of the One Big Beautiful Bill Act and is not intended to be legal advice or provide a tax opinion. This document is a summary only and not meant to represent all provisions within the One Big Beautiful Bill Act.
This information is not intended to be a substitute for individualized legal advice. Please consult your legal advisor regarding your specific situation.
