4 Ways to Plan Ahead for Senior Living
Planning ahead is a common recommendation to seniors and their families when discussing the cost of senior living. Unfortunately, with so many factors impacting financial resources – changes in the economy, unexpected healthcare costs, falling home prices, insurance affordability – this strategy doesn’t always work the same for everyone.
Thankfully, 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 outline four ways to plan ahead for senior living costs.
What’s most important?
In our last article, we discussed the importance of prioritizing a senior’s health, safety, and well-being when evaluating the cost of long-term community living and senior care. Identifying the factors that are most important to you and your loved one and keeping these items top-of-mind when comparing costs is essential when it comes to finding the right fit.
Once you have defined your priorities and preferences, plan ahead for senior living costs by comparing your options, setting aside personal resources, exploring long-term care insurance options, and utilizing applicable benefits.
1. Compare Options
Comparing senior living options has never been easier and can be done through online research and community visits. Download brochures and resources and schedule a few tours at different communities to get a closer look at each option.
You might consider meeting with a financial advisor prior to touring any community. This can help you prepare with greater confidence and avoid visiting communities that are financially out of reach.
Having a timeline in mind can also help you best manage your resources. Consider your age, level of independence, family situation, healthcare needs, and current lifestyle before setting your timeline. When comparing options and costs, explore communities that meet your needs and expectations while staying within your budget.
For example:
· If you are still driving and require very little support with your daily routine, an independent living community might suit your needs and eliminate additional costs associated with care services.
· If you could benefit from assistance with meal preparation, cooking, housekeeping, or personal care, an assisted living community might be ideal.
· If you are currently living alone at home and receive home health services or regular assistance from a caregiver or family members, an assisted living community with services, amenities, and on-site staff can support your changing needs.
· If you are looking for an option for you and a spouse with cognitive changes or early signs of memory loss, an assisted living or memory care community can provide specialized support and the right living option to meet both your needs and those of your loved one.
2. Set Aside Personal Resources
Another way to plan ahead for senior living costs is by setting aside personal resources. For most seniors and their families, these include:
Monthly income – Examine your income stream (social security, pension, retirement funds, etc.) and expenses and identify what is available each month or where you can set aside funds for saving or investing. You may find you are able to save more than you thought.
Savings – Opening up a savings account and making contributions for future senior living costs is one of the easiest things you can do to stash away any amount. Consider Nerd Wallet’s list of high-yield online savings accounts, with many rates in this list around 5% or more.
Assets & Investments – Talk to a financial advisor about your available assets or a short-term investment you can utilize to grow funds before you are ready to make a move. This may help offset monthly senior living costs or provide additional resources.
Sale of your home – A large majority of seniors looking to finance senior living costs do so with the sale of their home. This option is an opportunity to downsize and reduce burdensome home maintenance expenses while investing in your future. Consult with a real estate professional to best prepare your home and ensure a successful sale. When touring communities, prepare an estimate of what you can expect from that sale.
3. Explore Long-term Care Insurance
Long-term care insurance is another viable way to help finance the cost of senior living. In general, long-term care insurance provides coverage for long-term care services in a variety of settings. Most policies are broad in nature and cover services from home health care to adult day care, independent living, assisted living, memory care, skilled nursing care, and even hospice care.
Long-term care insurance may not cover the cost of living in an independent or assisted living community, but the policy can provide coverage for services that enable a senior to maintain an independent lifestyle. These services range from assistance with meal preparation to medication management, transportation, housekeeping, personal care (getting dressed, taking a shower, etc.), and more.
How much insurance will you need? There are numerous factors affecting how much insurance an individual will need, but on average, the National Council of Aging estimates that “women tend to need care for longer (an average of 3.7 years), while men need care for an average of 2.2 years.”
Meeting with an insurance professional who can advise you in selecting the right long-term care policy is recommended, as policies and coverage can vary greatly. For more information about long-term care insurance costs and planning for senior living, check out Genworth’s Cost of Care Survey.
4. Utilize Applicable Benefits
There may also be other benefits that you or a senior loved one can utilize to cover senior living costs. For example, 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, but more information can be found at longtermcare.gov. or the National Institute on Aging website.
For qualifying Veterans who have served a minimum of 90 days, with at least one day of active duty during a time of war, the Veterans Aid and Attendance Benefits can provide significant assistance. These benefits don’t cover the monthly rental fees associated with senior living, but they can provide payments to Veterans and their surviving spouses which can be used to cover costs related to personal care or assistance with activities of daily living. To learn more about whether you or a loved one would qualify, or to apply, visit: https://www.va.gov/pension/aid-attendance-housebound/
Making the Right Choice
Remember, choosing any senior living option based on cost alone can put your loved one at risk. Don’t sacrifice a home-like community with dedicated staff, quality care, and a feeling of belonging simply for a “better” price. Begin planning ahead today and taking small steps in the right direction to ensure you or your loved one can afford senior living.
Keep reading for more answers to your questions about affording senior living! Check out Cardinal Bay’s valuable free resources and subscribe to our blog, or schedule a visit today and experience the many benefits of life in our independent living, assisted living, and memory care communities in Texas and Oklahoma.