Cost of Assisted Living: What Seniors and Families Should Expect
As you get older, certain worries might lift, especially when you retire. There is no more commute, children have left the nest, and you may even find time to pick up forgotten hobbies. But there is one worry that seems to stay with us for life: money. Can we afford to do the things we love?
That's why budgeting is one of your first tasks when you start looking at assisted living expenses. In this guide, we'll break down the cost of assisted living and how to ensure it meets your budget.
Assisted Living Costs: What Is Covers
Before you can create a budget for your senior years, you need to understand where that money will go.
Assisted living is one type of support in a senior living community. It is often seen as a middle ground between independent living and nursing care for people who are still mobile and active but who may need some general help on daily tasks such as dressing, washing, and medication management.
You'll also have services intended to make life easier, such as housekeeping and maintenance. When you join an assisted living community, one of the first things the team will do is create a tailored plan that covers all your assistance needs.
When it comes to assisted living costs, all these services will need to be considered in your budget. When you see a price in a community for assisted living, it will generally include:
- Personal daily care
- Access to on-site amenities like a fitness room
- Senior housing costs, such as a private apartment
- Meals
- Housekeeping
- Maintenance
- Utilities
- 24/7 emergency support
You may see other services included, like specialist therapies or additional personal assistance. But often, these and any specialized care will be listed as a separate cost.
It's important to understand what is and isn't included in any quote to manage your expectations.
The Average Cost of Assisted Living in the US
According to Statista, the median annual cost of assisted living was $64,000 as of 2023. With inflation, these prices are likely to continue the current trend: a rise in costs year-on-year. However, retirement community pricing varies by state, and they also vary when you take into account the different services on offer in each community.
That's why it is vital that you compare like-for-like. One that is below average may have added costs that aren't part of the flat fee, so always do your homework when researching and comparing prices.
Factors Impacting the Cost of Assisted Living
Let's take a closer look at some of the factors that can make your assisted living costs more or less expensive. Understanding more about the items that push costs up can help you stay within budget:
Location
Large metropolitan areas and high-cost states tend to have more expensive costs. You may see a significant contrast in prices when looking at assisted living in rural regions that are far from cities.
Care Level
Not all seniors in assisted living communities require the same level of care. It may depend on your mobility, whether you need walking aids, and any conditions you have that require ongoing medication or therapy.
Amenities
The best communities will include private apartments, so when comparing costs, check whether that's included in the price. Other amenities like dining, wellness, and social activities will impact the cost. In some communities, these amenities and activities might be offered as an added extra and not in the base price.
Assisted Living Costs Vs. Other Senior Care Options
When you begin to set a budget for your retirement, take some time to consider other care options available.
It may be that you are independent enough at the moment that you don't need daily assistance. Or, you may have a progressive condition that can currently be managed with assisted living support but may require more intensive care in the future, like dementia.
If you need to switch from one level of care to another, this will impact the long-term costs. While it's impossible to predict the future, you should make reasonable allowances for how your care needs may change over the years.
Paying for Assisted Living
The cost of retirement is probably something you have been planning for some time. Nevertheless, it's crucial you don't overlook proper research when it comes to paying for assisted living. Here are some ways people cover the cost of assisted living:
- Retirement savings and pensions
- Social security benefits
- Veterans benefits
- Long-term care insurance
- Home equity through a home sale
- Family support
It may be that you have a combination of financial sources. Getting financial advice can often be worthwhile, especially if there is a chance you are entitled to certain benefits.
Smart Financial Planning for Seniors
It's never too late to think about financial planning in order to have the best budget for your senior living years. Here are some tips:
- Assess all your current income sources
- Consult a financial planner who specializes in tax benefits
- Review your insurance plan
- Downsize or rent out your home as an income source
Planning ahead will help you compare different options, as you might find some approaches more cost-effective than others. Always remember to get proper financial advice before making a big decision.
Finding Assisted Living Communities That Offer Value for Money
Finding affordable care isn't always about picking the lowest-priced offer. What you get for that budget is as important, so always focus on value for money rather than price when comparing different assisted living communities.
With elder care affordability, make sure you consider the quality of what you will get for that money, too. Check online reviews and read state licensing reports.
Affordable and High-Quality Assisted Living in Albany, IN
When researching a senior living community in Albany, IN, there will probably be a lot of things on your wish list. However, it's important to do your research on the cost of assisted living before you set a price. Understanding the details of where your money will stretch will help you make a sound decision.
Take a closer look at the fantastic assisted living environment we have at Bennett Place Assisted Living. With individual care plans and a focus on wellness, you'll experience a dream retirement at an affordable price.