When it comes to senior living funding, we’re often asked, “What’s the best way to financially prepare?” While there’s no one right or wrong way, a good place to start is by understanding the cost of care and what’s impacting it. Then you can better prepare for AND fully benefit from the value of senior living. Here’s what you should know.
Senior Living Funding Facts
Before you can determine what you need to save to fund senior living, you need to know what to expect in terms of cost right? The key to this is the level of senior care that your loved one needs. For example, according to the most recent Genworth Cost of Care Survey, a private, one-bedroom in assisted living averages $4,300 a month. In memory care, you can typically expect a range between $2,000 to $7,000 monthly although there is little published data on average cost because it varies so greatly from state to state.
Behind the Rising Cost of Senior Care
Unfortunately, another factor you’ll have to account for is the rising cost of senior care and this isn’t just in senior living. According to Genworth, senior care costs have risen steadily across the United States over the past 17 years both at home and in senior living. Here’s what’s impacting the cost:
An increasing number of people who need heightened levels of senior care
- Labor shortages
- Personal Protective Equipment (PPE) costs
- Regulatory changes including updated CDC guidelines
- Employee recruitment and retention challenges
- Wage pressures
Now for the good news, there are a number of options that can help you offset the cost!
Help with Senior Living Funding
If after better understanding the costs, you’re concerned there may be a gap between them and what your loved has saved, consider these options:
- Veterans Aid & Attendance Benefit – Wartime veterans or a surviving spouse may be eligible to receive a non-service-connected pension (above the basic pension) to assist in paying for in assisted living, home health care, adult day care or skilled nursing if you meet certain conditions.
- Long-Term Care (LTC) Insurance – LTC insurance can help pay for the cost of home care, adult day care, assisted living, memory care, skilled nursing and hospice by covering services typically not covered by health insurance, Medicare or Medicaid.
- Life Insurance Conversion – Your loved one’s in-force life insurance policy may be able to convert into a pre-funded financial account that disburses a monthly benefit to help pay for needs such as home care, assisted living, skilled nursing and hospice.
- Reverse Mortgage – This is a type of home equity loan for homeowners 62 or older who want to access their equity to supplement retirement income. In this case, the lender makes payments to you based on a percentage of your accumulated equity.
What You’ll Gain
With a better understanding of what to expect you’re able to better prepare financially which ultimately means your loved one will benefit from the full value of senior living. Beyond quality care, the lifestyle experience enhances overall wellness with maintenance-free living that gives them the freedom from chores and home upkeep as well as a full calendar of social and enrichment opportunities to keep them active and fulfilled. Not to mention a beautiful campus, spacious accommodations and resort-style amenities to enjoy!
But perhaps most importantly, you’ll gain peace of mind that with multiple levels of senior care on our campus your loved one will always have the support they need to live their best life.