Budgeting for Senior Living: What Costs to Expect

Budgeting for Senior Living: What Costs to Expect

Budgeting_for_Senior_Living-_What_Costs_to_Expect-1Assisted living is so often completely essential in our senior years, but many of us are caught off guard by the need and taken by surprise. It’s understandable that many seniors and their families are concerned by the high costs of moving into a senior living facility. Although assisted and senior living can be very expensive, a little bit of legwork and consultation with the right people will help you understand and deal with the costs.

Talk about Finances

Even though assisted living is a reality that many of us will face in our senior years, a lot of people feel like the need for it arrives unexpectedly. Many people in our parents’ generations were raised to be extremely private about finances, so it’s not uncommon for adult children to feel completely unaware of their parents’ financial state and what resources they may or may not have available. But even if you haven’t had those kinds of discussions before, you will need to start. It’s never too late to talk about financial planning with your parents, and the facility you choose will have professionals on staff to help you learn about your options.

The Family Home

For most people, their home is one of their greatest assets, which can be tapped when needed for immediate financial help. It’s important to consult with a qualified Realtor or other real estate professional about the per year price point for homes in the area where your parents own their home. Reverse mortgages may be another useful way of obtaining money without selling the home outright. Selling the family home can be a great way to raise money to pay for senior care, but it requires other considerations, such as whether or not another living spouse would be displaced and the tax impact of doing so. 

Long Term Care Insurance

Long term care insurance can go a long way to defray the high costs of senior care, including assisted living. If your loved one had the foresight to get a long term care insurance policy, it’s a good time to review the details of what the policy will and will not cover. Most such policies have daily limits for coverage, a benefit period and elimination periods. The details about the policy will vary based on what kind of policy they chose; there are comprehensive, facility-only and home care options.

Other Associated Fees

The cost of assisted living doesn’t just include the charge for the facilities and food. Other fees may be incurred, such as daily medication administration, which can vary based on the individual facility and how many times per day it needs to be given. Other additional fees include off-site activities, private transportation and guest meals. Most facilities also require non-refundable deposits at the time of moving in, which can range from $1,000 to $5,000 and go toward administrative expenses as well as renovating individual apartments on an ongoing basis.

Moving your loved ones into an assisted living facility can be a stressful and uncertain time, but you should feel comfortable enough with the staff to ask for their guidance. You will see that there are many options that can make it work. Contact us today.

            Download Senior Care Decision eBook        

Simplicity At Its Finest

Our Senior Solutions blog aims to provide news and articles to help you along your senior living journey. Subscribe today and receive new blog posts right to your inbox!

  • Health & Nutrition Tips
  • Caregiver Resources
  • Senior Living News

Recent Posts