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

Do you remember asking questions of your friends by passing notes back and forth at school? If only the answers to your senior living questions were as simple as unfolding that lined sheet of paper with a circled yes or no.

There may not be an easy “yes” or “no” answer to your questions about affording senior living, but this article provides essential considerations to inform your decision. Read on for guidance on evaluating senior living costs and a closer look at managing resources for a successful move.

Assess Your Financial Situation
Ultimately, the most important consideration when evaluating the cost of long-term community living or senior care options is the senior’s health, safety, and overall well-being. But equally significant is the financial investment.

Begin by assessing your financial situation to identify your resources. Here are a few questions to ask early in the process when thinking about making a move:

• What does my monthly income look like? Is there a pension? Social Security?

• Are there any personal savings, assets, or investments to consider?

• Is there a long-term care insurance policy?

• Can Veterans Assistance Benefits apply?

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

These factors represent the most common resources applied to senior living costs. While a financial advisor can provide a more detailed look to confirm eligibility, this simple review of monthly income expenses can offer a helpful preview.

Evaluate Your Current Living Costs
As you assess your monthly income and budget, your next step is making a clear list of current cost-of-living expenses.

• Do you currently pay for housekeeping, landscaping, and home maintenance services?

• What do your dining, meals, and shopping expenses look like?

• What are you spending on entertainment, outings, and social engagements?

• Do you own your own home and/or vehicle?

• What is the size of your home and how much are you paying for utilities?

• Are you living comfortably within your budget?

• Do you have family members who provide supplemental income to cover your expenses?

Many senior living communities offer cost comparison guides that can itemize these expenses and simplify this process for you. When touring a community, inquire about their tools and resources for determining financial eligibility.

Determine Your Timeline
Knowing your timeline is also essential before planning for any move since whether or not you can afford senior living will largely depend on how long you plan to finance this option. Although difficult to predict, as there are no guarantees for the best-laid plans, try to estimate how many years you or your loved one would need to plan for.

Consider the following:

• &How old are you or how old is your loved one?

• What are your/your loved one’s current healthcare needs? How might they change in the future?

• The average length of stay for an independent living or assisted living resident

While the average length of stay can vary between 1-3 years for assisted living, it can be much longer, perhaps 10-15 years for an independent living resident. It’s also important to note that senior living planning for a healthy 80-year-old will look a lot different than planning for a 92-year-old with multiple health concerns.

As you determine your timeline, think about setting aside a financial buffer to help cover unanticipated costs related to a longer length of stay or the need for additional care services and support.

Identify Daily Care Needs
As we age, our daily care needs can evolve and change; for some seniors, these changes can happen quickly. It’s difficult to plan without knowing what to expect, but covering the cost of increasing care needs when changes arise will be vital.

Assess your current needs:

• Could you or your loved one benefit from assistance with daily tasks such as getting dressed, taking a shower, or personal care?

• Do you need help managing your medication?

• Do you experience vision, hearing, or mobility challenges?

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

• Any recent changes in memory or cognitive impairment?

• Is there a diagnosis of dementia?

Whether a senior live alone in their family home or in a senior living community, there is always a cost associated with increased care needs. If you or a loved one is currently paying for private home health care, these costs will need to be assessed when exploring senior living.

Some communities include daily care as part of an inclusive monthly apartment rental, while others offer an a la carte option. Keep in mind the quality of care provided and the level of expertise associated with that care. For many seniors, paying for care services and daily assistance can ensure they are able to live safely and independently for as long as possible. You can’t put a price tag on quality care and quality of life.

Be Flexible with Your Options
When researching senior living options, maintain a flexible mindset to maximize affordability. Availability and apartment options can vary by community and location and care services for daily assistance or memory support may or may not be included. Discuss these offers when visiting each community to compare the value and cost. Think about:

• What lifestyle would be the best fit? Independent living, assisted living, or memory care?

• What type of living option are you looking for? Cottage, One- or Two-bedroom apartment? Studio apartment? (You may be set on a one-bedroom apartment, but a studio apartment might offer good value.)

• What type of rental does the community offer? What’s included in the monthly rent and what would be an additional fee?

• What care services can the community provide?

• Is there a trial stay option that allows you to test the lifestyle before making a decision?

Understand the Value of What You’re Paying For
So what can you expect to pay for senior living? Well, that depends! The National Council on Aging estimates the average cost of assisted living to be around $4500 per month. This will vary by location, type of living option, amenities, and additional care services needed. Included amenities will also vary by community (utilities, meals, housekeeping services, and other amenities, etc.). The average cost of independent living may be less than assisted living, while the average cost of a memory care community will likely be higher.

If you or a loved one needs supportive care not included in the monthly rental cost, a basic package with assistance managing medication can be priced around $200- $300 dollars per month. If mom or dad needs additional support with daily tasks or assistance with mobility, plans could be priced at $1500 a month or more.

Don’t Make This Mistake!
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 any hidden costs, community fees, resident and family responsibilities, or unexpected increases.

Most importantly, don’t make the mistake of moving into any senior living community based on cost alone. You would never want to sacrifice a relationship-centered living environment, exceptional care, compassionate and professional staff, the feeling of home - and a sense of community for a “better” price.

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.