Planning for Senior Living: 4 Tips for Seniors and Caregivers
Planning for the cost of senior living can be tricky, without knowing what to expect in our senior years. Changes in the economy, healthcare and housing costs, insurance affordability, and unpredictable life circumstances can upset even the best-laid plans.
Whether you are just starting your senior living search or considering a move soon, there are a few simple steps you can take today to ensure you or a senior loved one can afford senior living. In this article, we’ll offer four tips for seniors and caregivers that can help you plan for the cost of independent living, assisted living, or memory care.
Rely on senior care and financial experts who can assist.
A trusted senior care expert should be honest and direct when discussing a prospective resident’s financial eligibility, or ability to afford senior living. But they should also affirm the importance of preserving and maintaining your health, independence, safety, and overall well-being. When comparing senior living costs by community, know which factors are most important to you and your loved one (e.g., spacious apartments, one-floor living, access to a continuum of care, services and amenities, and staff longevity).
Meeting with a financial advisor before visiting communities can help you prepare with confidence and avoid touring communities that are financially out of reach.
Consider your age, level of independence, family availability, healthcare needs, and current lifestyle before setting your timeline. Explore reputable communities that meet your needs and expectations while staying within your budget.
With priorities and preferences defined and sound financial advice, plan for senior living costs with these four steps:
1. Explore long-term care insurance.
2. Compare options.
3. Set aside resources.
4. Utilize your benefits.
1. Explore Long-term Care Insurance
Long-term care insurance can offer substantial assistance in covering long-term care services and financing the cost of senior living. But for seniors and busy caregivers, exploring insurance options can feel like a complicated step, and without the right guidance, many assume long-term care insurance is financially out of reach as well.
Meeting with an insurance advisor can be beneficial to evaluate long-term care insurance policies and the services they cover such as:
· Home health care
· Adult daycare
· Independent and assisted living
· Memory care
· Skilled nursing care
· Hospice care
Long-term care insurance may not cover the cost of living in an independent or assisted living community, but it may provide resources for enabling a senior to maintain their independence. Be sure to ask about the following:
What services will the policy cover?
Long-term care insurance can often provide financial support to cover the cost of assistance with daily living activities, such as personal care (showers, getting dressed, etc.), meal preparation, housekeeping and home maintenance, transportation, medication management, and more.
How much insurance will I need?
There are several factors to consider when determining how much insurance an individual will need, such as age, healthcare needs, and availability of support. The National Council of Aging estimates that women may need more care than men, with planning averages of 3.7 years for women and 2.2 years for men.
How much will the policy cost?
The cost of long-term care policies varies, but assistance from an insurance professional can help you select the right policy with essential coverage for yourself or your loved one. Genworth’s Cost of Care Survey is a helpful resource for senior living planning and exploring long-term care insurance costs and housing options.
2. Compare Options
Thankfully, comparing senior living options has never been easier thanks to a simple online search and community visit. Brochures, guides, and resources can be easily downloaded (or printed for those who prefer a paper copy) and community tours can be scheduled with a click on the community’s website.
Keep the following guidelines in mind when selecting senior living communities to tour:
· Independent Living: A good fit for those who are independent, still driving, or require little support with their daily routine. This option does not typically include care services or the additional costs associated with that care.
· Assisted Living: A good fit for those who might benefit from assistance with meal preparation, cooking, housekeeping, or personal care. This option is often the choice of those who are currently living alone at home and receiving home health services or regular assistance from a caregiver or family members. Services, amenities, and on-site staff can support changing needs.
· Assisted Living or Memory Care: A good fit for those with cognitive changes or early signs of memory loss. This option can provide specialized support as an individual’s needs change, while also meeting the needs of couples when one partner is experiencing cognitive decline and assistance in caregiving is needed.
Other cost-related details to consider when comparing senior living options:
· The wide range of options, services, and amenities, which contribute to differences in cost. Some communities may include care services and amenities, and others may charge an additional fee.
· The wide range of living options, which typically determines the monthly rental fee. Some may offer cottage living. Others may only have studio or one-bedroom apartments. Whatever the offering, compare the cost of the monthly apartment rental, and any needed assisted living services.
Ask your senior care expert for a cost comparison sheet. This is a simple tool that can help you keep track of each option and decipher how each community differs when evaluating costs.
3. Set Aside Resources
Even if it feels late in the game, start setting aside personal resources when planning for senior living costs. For most seniors and their families, resources come from four buckets:
Income – Look at what’s coming in each month (social security, pension, retirement funds, etc.) what’s going out (expenses), and opportunities for saving or investing any leftover resources.
Savings – Making contributions to a savings account set up for senior living costs can be practical even when saving just a small amount. Nerd Wallet’s list of high-yield online savings accounts offers options with rates around 5% or more.
Assets & Investments – Selling assets or a short-term investment can help grow funds as you prepare to make a move. Talk to your financial advisor about additional resources that can help to offset monthly senior living costs.
Sale of your home – Many seniors finance senior living with the sale of their home, which offers an opportunity to downsize, reduce home maintenance expenses, and invest in your future. Ask a real estate professional for an estimate of what your home is worth in today’s market before touring senior living communities.
4. Utilize Benefits
Ask a senior care expert for helpful information about benefits eligibility for individuals who qualify. Below are two examples:
Veterans Aid & Attendance Benefits
These benefits have very specific qualifications for eligibility but may be able to help qualifying Veterans who have served a minimum of 90 days (with at least one day of active duty during a time of war). Benefits are not available for applying to monthly apartment rental fees in a senior living community but can provide coverage for costs related to personal care or assistance with daily living activities for the Veteran or surviving spouse. To learn more about qualifications, or to apply, visit: https://www.va.gov/pension/aid-attendance-housebound/
Specialized elder programs
Some states have specialized elder programs that provide rental assistance or housing contributions to eligible older adults. Benefits and eligibility can vary from state to state. Check out longtermcare.gov or the National Institute on Aging website to learn more.
Planning Next Steps
With these four tips in mind, let’s talk about the next steps. Plan to schedule a meeting with a financial advisor or insurance professional to discuss financial facts and figures and then begin comparing options at local senior living communities. Set aside resources and inquire about benefits your loved one may be eligible for that can offer financial assistance.
Lastly, remember that any senior living decision based on cost alone can put your loved one at risk. Be sure to prioritize quality care, safety and security, a community’s positive reputation, compassionate and professional staff, and a home-like feeling that enables you and your loved one to feel welcomed, comfortable, and included.
Stoney Brook’s relationship-centered living focus offers prospective residents and their families exceptional assisted living and memory care offerings at their Texas senior living communities. For their valuable free resources, subscribe to the Stoney Brook blog, or contact us to schedule a tour and meet our residents and staff to experience the Stoney Brook difference for yourself. We look forward to hearing from you!