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"I love my home, but I'm worried about those stairs in ten years." This concern is one I hear regularly from Washington public employees approaching retirement. It's a valid concern—our homes that served us well during our working years may present challenges as we age. What many Washington state and local government employees don't realize, however, is that their unique benefits package provides significant advantages when planning to age in place. Here's what public servants in Washington need to know about staying in the home you love. The Financial Reality of Long-Term Care Let's start with some sobering numbers: The average cost of assisted living in Washington now exceeds $6,000 per month, with nursing homes over $12,000 monthly [1]. That translates to more than $70,000 per year just for basic care. But here's the advantage Washington public employees have: Your pension through DRS provides guaranteed lifetime income with cost-of-living adjustments. Whether you're covered under PERS, TRS, LEOFF, PSERS, or another plan, this stable foundation—combined with your DCP savings and PEBB retiree healthcare benefits—creates a financial advantage many private sector workers simply don't have. This guaranteed income stream can make it financially feasible to invest in home modifications rather than being forced to consider institutional care options. The Pacific Northwest Challenge Our region presents unique aging-in-place challenges. Between our rain, occasional snow, and hilly terrain, standard home modification advice doesn't always apply in Washington. Here are modifications that address our specific regional challenges: The Outside-In Strategy An effective approach begins with adapting your home's exterior to our unique climate:
Inside Modifications for Northwest Homes Beyond the standard grab bars and lever handles, consider these adaptations particularly relevant to homes in our region:
The Washington Public Employee Benefit Advantage Here's something many financial advisors miss: Your position as a public employee in Washington provides several unique advantages when funding home modifications:
A Three-Phase Implementation Strategy For Washington public employees planning to age in place, this phased approach can be particularly effective: Phase 1: Pre-Retirement (1-3 years before)
Phase 2: Early Retirement (Years 1-3)
Phase 3: Ongoing Enhancements
Room-by-Room Priorities Bathroom Safety Bathrooms present the highest fall risk in homes. Consider these modifications particularly important:
Kitchen Accessibility Create a kitchen that remains functional as mobility and strength changes occur:
Bedroom Considerations Make your bedroom work for the long term:
Smart Technology Solutions The technology landscape for aging in place has evolved significantly. Consider these options:
Your Action Plan: Next Steps
With thoughtful planning, you can create a home environment that supports your independence and quality of life throughout retirement, while protecting your hard-earned benefits from being drained by institutional care costs. Sources [1] Genworth Cost of Care Survey, 2025 [2] National Association of Home Builders Aging-in-Place Remodeling Report [3] AARP Home Modification Guidelines [4] Washington State Housing Finance Commission Senior Programs Guide [5] Smart Home Technology for Aging in Place Study, 2025 [6] CDC Home Safety for Older Adults Report [7] Universal Design Living Laboratory Research Study [8] National Institute on Aging Housing Report, 2025 -Seth Deal
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After decades of serving the people of Washington in state or local government, retirement is finally on the horizon. The question many public employees face at this stage is deceptively complex: What should you do with your investments as retirement approaches? Should you play it safe? Stay aggressive? Find middle ground? Let's explore what makes sense for Washington public employees. The Risk Paradox for Government Employees The conventional wisdom suggests becoming more conservative as retirement approaches. But here's a critical insight that's often overlooked: being too cautious with your investments can be just as problematic as being too aggressive. Why? Your retirement could last 30 years or more, and your money needs to keep working throughout that time in order to keep pace with inflation The Washington Public Employee Advantage As a Washington state or local government employee, you have a significant advantage that many private-sector workers don't: your defined benefit pension through the Department of Retirement Systems (DRS). Whether you're in PERS, TRS, LEOFF, or another plan, this guaranteed income creates more flexibility than you might realize when managing investment risk [1]. This pension foundation changes the entire risk equation for you. Understanding Your Complete Risk Picture Think of managing risk like adjusting the temperature in your home. Getting it right requires balancing multiple factors: 1. Risk Tolerance: Your Emotional Comfort Level This is your psychological ability to handle market volatility—that feeling in your stomach when headlines announce market drops. While important, your comfort level shouldn't be the only factor driving your decisions [2]. 2. Risk Capacity: What Your Financial Situation Can Handle Here's where your pension makes a crucial difference. With guaranteed monthly income that includes cost-of-living adjustments, you likely have greater capacity to weather market fluctuations in your other investments than someone without a pension [1]. 3. Risk Requirement: Your Need for Growth Even with periodic cost-of-living adjustments, inflation can erode your purchasing power over time. Your investments need to help combat this reality throughout a potentially long retirement. The "War Chest" Strategy for Public Employees Here's a practical approach that can help balance security and growth: create what I like to call a "War Chest." This strategy is particularly effective for government employees with pensions [3]. Start by setting aside five years of expenses beyond what your pension and Social Security will cover:
Making It Work with Real Numbers Let's say you've calculated that you'll need $2,000 per month beyond your pension and Social Security. Here's how to build your War Chest:
Your Washington Deferred Compensation Program (DCP) and other investment accounts offer tools to implement this strategy [1]:
Remember that your pension provides a strong financial foundation—a monthly income stream that many Americans don't have. This means you can focus on using your supplemental savings (DCP, IRAs, and other investments) to maintain your lifestyle and keep pace with inflation [2]. What many financial advisors miss is how this pension foundation should influence your investment approach. The traditional risk models often fail to properly account for the value and security of a government pension. Next Steps for Washington Public Employees
Your career serving the public in Washington state has provided you with valuable retirement benefits. Now is the time to optimize how these benefits work together to support your retirement goals. Sources: [1] Washington State Investment Board (2025). "Long-term Investment Strategy Report" [2] Journal of Pension Economics and Finance (2025). "Risk Management in Public Sector Retirement" [3] Financial Planning Association (2025). "Retirement Income Strategies for Public Employees" -Seth DealAs Washington state employees approach retirement, one of the most crucial decisions you'll face is where to live during your retirement years. While your DRS pension and DCP savings provide a strong financial foundation, careful planning for your housing needs can help ensure you maintain independence and quality of life throughout retirement. With the average cost of assisted living in Washington state continuing to rise sharply, investing in home modifications that allow you to age in place can protect your retirement savings while keeping you in the comfort of familiar surroundings. Understanding Your Financial Advantage as a State Employee Washington state employees have unique advantages when planning for retirement housing needs. Your defined benefit pension through DRS provides guaranteed lifetime income that increases with regular cost-of-living adjustments (COLAs). This stable income stream, combined with your DCP savings and PEBB retiree healthcare benefits, creates a strong foundation for funding home modifications while maintaining your desired lifestyle [1]. Unlike many private sector employees who must rely solely on 401(k) savings, your guaranteed pension income can provide the financial security needed to make long-term housing decisions with confidence. Additionally, your PEBB retiree benefits may help cover certain medical equipment needs that complement your home modifications. Planning for the Pacific Northwest Lifestyle Creating Safe Exterior Access The Pacific Northwest's unique climate and terrain present specific challenges when modifying your home. Washington has a diverse climate and terrain and depending on where you are in the State, your needs may be different. Our region's rain, occasional snow, and hilly terrain require thoughtful planning for exterior accessibility. Consider these key modifications:
Your home's interior should adapt to changing needs while maintaining comfort and functionality:
Strategic Use of Your Benefits Package Your position as a public employee provides several unique advantages when planning for home modifications:
Consider implementing modifications in phases to align with your retirement timeline and benefit availability: Phase 1 (Pre-retirement):
Modern home technology can significantly enhance safety and convenience while aging in place:
Bathroom Safety Priorities Bathrooms present the highest fall risk in homes. Consider these essential modifications:
Create a kitchen that remains functional as mobility and strength changes occur:
Create a safe and comfortable sleeping environment:
Sources [1] PEBB Retiree Benefits Guide, 2024 [2] National Association of Home Builders Aging-in-Place Remodeling Report [3] AARP Home Modification Guidelines [4] Washington State Housing Finance Commission Senior Programs Guide [5] Smart Home Technology for Aging in Place Study, 2024 [6] CDC Home Safety for Older Adults Report [7] Universal Design Living Laboratory Research Study [8] National Institute on Aging Housing Report, 2024 -Seth Deal |
AuthorsBob Deal is a CPA with over 30 years of experience and been a financial planner for 25 years. Archives
March 2025
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