Most of us are probably feeling the economic squeeze at this point. Gas prices and food costs are higher, interest rates and rents are rising and everything seems more expensive than it used to be. And there’s concrete data to support your suspicions. Inflation is now at its highest point in 40 years, with prices up 9.1% since this time last year. In fact, the Elder Index, a little-known but highly respected measure of the cost of living for older adults living independently shows that many older adults are just one crisis away from financial disaster, living precariously and cautiously as prices rise and assets shrink. Many senior citizens are barely able to meet their basic necessities as the true cost of living for older adults shows that Social Security doesn’t cover basic living expenses nor does Medicare cover all essential medical care. As you undoubtedly know, for many older adults it’s a dire situation out there. For more on this misery, click here.

While you have to eat and (hopefully) are continuing to take your essential medications, housing is one area where cutbacks can be made and expenses potentially trimmed. Available data show that 80% of baby boomers own their own homes. That’s potentially good news if you want to get your equity to help with rising costs. But if you’re serious about selling (and who knows what the market is doing these days), the question is where would you go? Finding a new (and affordable) place to live (assuming you want to continue living independently) is no easy matter. In fact, given the high costs of retirement communities, the long wait lists for independent living facilities, and escalating interest rates, it’s not clear if you really can sell and if so, can afford to relocate to perhaps a less expensive area. For some suggestions of lovely and lower-cost areas to which you could relocate (and find rental apartments), pull out your map and click here.

But if selling and moving is not in the cards for you (or not a financially viable plan), then the next best step may be to take advantage of the place you have to up your income and cut your expenses. We’ve previously discussed the move toward “boommates” or roommates for baby boomers. Since our previous post, this trend appears to have exploded as older adults recognize that with rising costs and shrinking retirement accounts, there’s just no way to age in place, upkeep a house and have enough money to take care of everyday expenses. There are now several not-for-profit and for-profit entities that are supporting the decision by older adults to rent that empty bedroom or split the costs and responsibilities for keeping a house or apartment in the community. Each has its own matching and screening process, with some using extensive questionnaires to find compatible roommates, while others have algorithms that find roommate/housemates who have the attributes you may be searching for, either as a host looking to bring someone in or as an applicant looking to rent with someone you’d be comfortable living with. Among the services? In the not-for-profit realm, there are companies like Senior HomeShares, or, in New York City, there’s the New York Foundation for Senior Citizens. In the for-profit sector, you can consider such entities as SilverNest or SpareRoom.

If you’re open to housing a younger roommate, there are companies as well as community initiatives that match older adults with college or graduate students who may be in search of affordable housing but uninterested in dorm living. For a rental fee and often an in-kind ask of some household assistance (not to mention some intergenerational companionship), older adults get both the income of a renter and the vitality of a younger person. Companies in this space include Nesterly. Some communities, such as one in Atlanta, are using these multigenerational housing arrangements not only to help out seniors who face financial troubles but also younger residents who cannot afford housing on their own or need the supportive structure and wisdom that may come from an older roommate. This trend of multigenerational living, whether of related individuals or non-family roommates, is growing, according to data gathered by the Pew Research Center. While financial concerns are clearly driving this trend, a silver lining is that it is also addressing the social isolation and loneliness experienced by both young and old alike in this country. And while not everyone can and will embrace this trend, (with concerns about trust and privacy front and center), it may be that for many older adults who are financially strapped yet yearning to stay independent, the addition of a housemate may be just the ticket to sustain a measure of independence and address the isolation experienced during the pandemic. If you do your homework and use a reputable service to help, you might increase your bank account, decrease your debt and find a companion in one fell swoop.