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

• Deciding who to help make decisions — or make them for you — is a crucial first step to planning.
• Financial stability is more than tending to debt; it’s looking around your living space.
• These kinds of plans are good for any age.

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’s 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.

They can be tough conversations, but there’s online guidance for beginning those conversations. 

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 here or at www.caringinfo.org. 

Additionally, the Michigan Bar Association offers a guide here to choosing a funeral representative designation, the state’s Will and Patient Advocate law, and organ donation.

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’s 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’s according to research from Northwestern Mutual.

Related:

• Where to find help for Michigan seniors. A guide for navigating the maze
• Whitmer proposes more money for Michigan's aging crisis. Is it enough?
• Crush of retirees a crisis in Michigan. State unprepared to meet their needs
• Experts: Michigan lawmakers should make 6 fixes to improve senior care
• Unlocking the secrets of Michigan’s ‘superagers,’ who defy golden years
• Watch Bridge Lunch Break on the challenges of aging in Michigan

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.

This AARP resource can help you get started with financial planning.

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’s role in paying for nursing homes and other long-term care, Buhl said.

It’s never too early to plan for long-term care, she and others said. AARP provides a guide to long-term care here.

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’s 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’s 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.

While leaving the family home can extract an emotional toll, it may only get worse with age. Complicating matters is that many people will be less financially able to choose the place they want as they age.

“At a certain time, if (aging residents) don’t get out of the humongous or difficult-to-care-for homes, it makes it difficult for adult children caring for them,” Rencher said. 

“But if they move and downsize soon enough, it allows them to remain in their familiar communities and to stay in their homes longer.”

Stay active. Seriously.

Consider volunteer opportunities or returning to work, even part-time. 

Even if your finances are in shape and your paperwork complete, life can get … quiet… after retirement. Workplace banter is gone; so, too, are invitations for office parties or work travel. Grown children start their own lives. Friends move away or face their own challenges in getting around. (One survey found that 1 in 4 Michiganders report they lack enough friends.)

On the flip side, another study — also out of University of Michigan — is finding that staying active is a common theme among Michiganders who remain sharp well into their 80s and 90s, also called superagers.

And then there’s this: While 9 in 10 adults say they’d rather age in place, in their own homes, they find it’s a lonely place to be, said the AARP’s Cunningham.

AARP’s Experience for Hire program  matches older Michiganders with jobs that especially can use their experience and insight. Locate volunteer opportunities in your area through Volunteer Michigan.

Funeral prep — just the basics.

There’s no need to pick out funeral songs; start with the basics for now. You would prefer to be cremated? Green funeral? Talk to loved ones.

Once you’re ready for a more detailed conversation, start with an understanding of the essentials and legal considerations of funeral planning. The MIchigan Funeral Directors Association offers online guidance here and a printable guidebook here.