Can I Afford Senior Living? Here’s What to Know.

Thinking about senior living? If so, you’re likely wondering whether you can afford this lifestyle change and looking for straightforward advice about the cost.

There’s no crystal ball with an easy “yes” or “no” answer to your questions about affording senior living, but there are a few considerations to inform your decision. In this article, we’ll provide guidance for seniors and caregivers evaluating senior living costs and looking to maximize personal resources for a successful move. 

Understand Your Timeline

Knowing how to finance senior living begins with understanding your timeline and when you plan to move. Many seniors and caregivers believe the longer you wait, the more likely you are to afford the cost. However, this may not be the case, as life circumstances can be difficult to predict. You will want to consider:

• Age – How old are you? How old is your loved one?

• Healthcare Needs – What are your current needs? How might they change in the future?

• Length of Stay – On average, how long do independent or assisted living residents live in a senior living community? 

Generally, most seniors set aside enough funds for 1-3 years of assisted living. For more independent seniors, setting aside finances for 10-15 years may be most practical. Keep in mind that a healthy, active 80-year-old will need to plan differently than a 92-year-old with multiple health concerns.

Whatever your timeline, plan to budget for a longer length of stay than you anticipate. You may require supportive care services or additional assistance at some point and will want to prepare for unanticipated costs.

Determine Your Current Living Costs

Assessing your current living costs involves a look at what you are currently spending each month. Do you know your monthly expenses? If not, start with the following budget items:

• Mortgage, rent, or monthly housing

• All utilities (Keep in mind the size of the home.)

• Housekeeping, landscaping, or home maintenance services

• Dining, meals, and shopping expenses

• Vehicle/transportation costs

• Ancillary spending (entertainment, outings, social engagements, etc.)

Are you living comfortably within your budget? Do you rely on supplemental income from family members or other sources to help cover any monthly expenses?

Ask yourself these questions when itemizing your expenses and look for a cost comparison guide which can simplify this process. Most senior living communities can offer this simple resource for determining your financial eligibility.

Honestly Assess Daily Care Needs

An honest assessment of daily care needs is essential when comparing senior living costs, as it helps ensure you or your senior loved one is set up for success in any new community. Remember that as we age, daily care needs can evolve and change quickly, even for the most healthy individuals. These changes, though difficult to predict, should be prepared for.

How would you assess yourself or a loved one?

• Do you still safely drive and provide your own transportation?

• Do you need help managing your medication?

• Do you experience any kind of vision, hearing, or mobility issues?

• Could you benefit from daily assistance with getting dressed, personal care, or taking showers?

• Have you noticed any recent changes in memory or received a diagnosis of dementia?

Whether a senior lives alone in their family home and is currently paying for private home health care, or living or in a community setting, there is always a cost associated with increased care needs. Remember to count these costs when comparing senior living. An inclusive monthly apartment rental may include daily care services or offer a cost per service fee.

With either option, paying for care and support from compassionate, professional caregivers can ensure your loved one is able to live safely and independently for as long as possible.

Review Your Financial Situation

A financial advisor can provide a more detailed look to confirm eligibility, but a simple review of monthly income can reveal some of the most common resources applied to senior living costs. Some questions to ask early in the exploration process:

• What is my monthly income? Is there a pension? Social security?

• Is there a house to sell? How much is expected from that sale?

• Is there a long-term-care insurance policy?

• What personal savings, assets, or investments are available?

• Can Veterans Assistance Benefits be applied?

When evaluating the cost of long-term community living or senior care options, the financial investment is a significant consideration, but ultimately, the senior’s health, safety, and well-being should always come first.

Be Flexible!

Senior living communities share many similarities, but every senior living community is unique and has its own model of pricing, living options, and available services. While some communities may include supportive care services in the monthly rental, others may opt for a lower monthly rate. Making the most of your funds requires maintaining a flexible mindset.

Think about:

• What type of rental does the community offer and what is included? What would be an additional fee?

• What types of living options are available? There could be cottage-style homes, one- or two-bedroom apartments, studio apartments, or even shared suites. (Remember: opting for a less- expensive or smaller-sized option may help extend your funds!)

• What lifestyle is best? Independent living, assisted living, or memory care? Does the community offer a continuum of care?

• What care services, if any, can the community provide?

Know the Difference Between Cost & Value

If you have limited resources, you will want to set your expectations accordingly when visiting communities and be diligent about examining exactly what is included in the cost and what is not. Don’t be afraid to ask about hidden costs, community fees, resident and family responsibilities, or unexpected increases.

The National Council on Aging estimates the average cost of assisted living to be around $4500 per month. This depends on a variety of factors including:

• Location/region

• Type of living option (The average cost of independent living may be less than assisted living, while a memory care community will likely be higher.)

• Services and amenities (included amenities vary by community but may cover utilities, meals, housekeeping services, maintenance, etc.)

• Additional care services

Supportive care services that offer daily or regular assistance to residents can be an additional $200- $300 per month for a basic medication management package to upwards of $1500 per month for a plan with daily care and assistance with mobility.

Don’t Make This Mistake

Most importantly, don’t make the mistake of moving into any senior living community based on cost alone. Many shiny, brand-new communities offer introductory rates to entice prospective residents, only to raise the monthly rate shortly after.

Residents and families often agree the most important consideration for their decision is the feeling of home they experience in a relationship-centered community. Along with this? Exceptional care. Compassionate, professional staff. A sense of belonging and acceptance. Ask about a trial stay option that allows you to test the lifestyle of any community before making your decision. See for yourself what matters most.

Keep reading for more answers to your questions about affording senior living! Check out Stoney Brook’s valuable free resources and subscribe to our blog, or schedule a visit today and experience the many benefits of life in our Texas-based assisted living and memory care communities.