As retirement nears, many of our Feds start thinking about what it will take to stay safely in their homes for the long term. Fortunately, many federal employees have access to a range of benefits and financial tools to help them reach this goal. “Aging in place” benefits planning helps reduce the cost of home modifications for federal employees by strategically using federal resources that help minimize out-of-pocket expenses.
With the right preparation, you can proactively — and affordably — create a space that meets your current needs and preserves your independence for years to come.
Why Aging in Place Matters
With the right planning, aging in place can provide the comfort of familiar surroundings and help preserve independence as needs change. Investing in home modifications is often significantly less expensive than long-term care facilities, and remaining at home allows you to stay close to family, friends, and established community networks.
Challenges of Aging in Place
While the benefits can be significant, aging in place also comes with challenges that require early attention. Without proper modifications, limited mobility and the risk of falls could make staying at home unsafe. This is particularly true in the case of unexpected events, such as power outages or medical emergencies. Without a clear plan, the cost of home adaptations, ongoing maintenance, and in-home care services can strain budgets.
Common Home Modifications Needed to Age in Place
Home modifications are designed to make day-to-day living safer and more manageable. Some of the most common updates include:
- Adding grab bars, ramps, and stair lifts.
- Widening doorways and hallways for wheelchair access.
- Adapting bathrooms with walk-in tubs, raised toilets, and slip-resistant flooring.
- Updating the kitchen by lowering countertops and installing accessible appliances.
- Installing smart home technology for security and emergency alerts.
Depending on specific needs, some modifications may be more relevant than others. It may be wise to consult with an occupational therapist or aging-in-place specialist to identify and prioritize the changes that are likely to have the greatest impact.
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Leveraging Federal Employee Benefits for Home Modifications
Federal benefits can make home modifications for federal employees more affordable. Here’s how to maximize the resources that may be available to you.
Federal Employees Health Benefits (FEHB)
Federal Employees Health Benefits (FEHB) plans may cover durable medical equipment (DME) like grab bars or hospital beds if they’re medically necessary. While structural home changes aren’t typically covered, this support may reduce costs for safety upgrades. Contact your FEHB provider directly to confirm eligibility and coverage for specific home modifications.
Flexible Spending Accounts (FSA)
FSA funds can be used for medically necessary home adaptations, such as wheelchair ramps or widened doorways prescribed by a doctor. Keep all required documentation, including a physician’s note and itemized receipts, to prove the expenses meet FSA requirements.
Long-Term Care Insurance (FLTCIP)
The Federal Long-Term Care Insurance Program (FLTCIP) can help cover costs for aging in place, including home health services and some modifications to improve accessibility. While new enrollments are frozen through at least December 19, 2026, existing participants can explore coverage options and apply benefits toward eligible expenses.
For those not enrolled in FLTCIP, private long-term care insurance may be an alternative. These policies can help with similar expenses, but often come with higher premiums. A financial professional can help you evaluate whether private insurance aligns with your overall financial plan.
Thrift Savings Plan (TSP)
The Thrift Savings Plan (TSP) offers Feds a way to fund major expenses, including home modifications, through strategic withdrawals in retirement. If you’re considering using TSP funds, be mindful of tax implications and how large withdrawals might impact your long-term savings. Consider consulting with a financial advisor to create a withdrawal strategy that balances immediate needs with future goals.
VA Benefits for Eligible Federal Employees
For Feds who are also veterans, assistance through the Department of Veterans Affairs (VA) may help fund some home modifications. Two key programs include:
- Specially Adapted Housing (SAH) Grant: Provides funding for major adaptations, such as wheelchair ramps, widened doorways, or modified bathrooms, for those with certain service-connected disabilities.
- Special Housing Adaptation (SHA) Grant: Assists with smaller modifications, such as improving access to existing spaces or adding safety features.
Eligibility is based on your service-connected disability rating and the specific requirements of each program. To apply, start by contacting your local VA office or visiting the VA’s website to review the grant criteria and complete the necessary paperwork. Approval can take time, so it’s important to start planning early.
Build a Plan to Support Your Independence
Successfully aging in place requires thoughtful preparation. The right approach can help you create a home that supports safety, accessibility, and independence as you age. When used strategically, federal benefits can help make these updates more affordable.
If you’d like guidance on “aging in place” benefits planning or maximizing the resources available to you, the team at Serving Those Who Serve is here to help. Contact us at [email protected] to schedule your financial planning consultation today!
The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Serving Those Who Serve writers and not necessarily those of RJFS or Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. **
