Re:US economy returned to growth last quarter, expanding 2.6%
by cwkoss on Thursday October 27, 2022 @01:28PM
(#33360981)
Many middle class seniors sell their homes to pay medical or long term care expenses.
Re:US economy returned to growth last quarter, expanding 2.6%
by lotsofpulp on Thursday October 27, 2022 @01:41PM
(#33361164)
I would like to see stats on that because the Medicaid asset test excludes $636k of one’s home value.
https://www.medicaidlongtermcare.org/basics/home-ownership-i...
Re:US economy returned to growth last quarter, expanding 2.6%
by hotdogrelish on Thursday October 27, 2022 @02:18PM
(#33361698)
Interestingly in some states it's even higher than $636k!
However, I think you're on the nose with the long term care facilities. Medicaid will only pay 100% of any nursing home care (high end or low end) if your countable assets are $2500 or less. Additionally, Medicaid considers your income going back 5 years in order to determine eligibility, so selling (or putting into a trust) sooner rather than later can make sense for a lot of people. https://www.webmd.com/health-insurance/features/when-how-muc...
Are reverse mortgages a common part of people’s retirement?
https://www.urban.org/urban-wire/reverse-mortgage-use-differ...
> At a time when seniors are sitting on a mountain of housing wealth and have anxiety about their finances, this should be a well-used program. Instead, despite rising senior population, participation decreased between 2011 and 2018, from 73,112 to 33,000 mortgages.
Does not seem like a popular part of peoples’ retirement plans. Even downsizing a house does not seem like it would yield enough of a profit to be a major component of retirement, unless you go from super popular area to middle of nowhere. But I doubt that is people’s retirement plan either.
https://fred.stlouisfed.org/series/MSPUS