As the population ages, many seniors find themselves in need of long-term care. While some seniors age at home, others choose assisted living communities to provide them with the support and care they need. But how to pay for assisted living is always a significant concern.
For some seniors, paying for assisted living with retirement savings may seem like the best option. However, asking seven critical questions before making this decision is essential.
1. What are the costs of assisted living?
Assisted living communities vary in cost depending on the location, size of the facility, and level of care needed. It’s important to understand the costs associated with assisted living and compare them with your retirement income and other sources of income.
Using Sarasota, Florida as an example, according to Genworth Financial, the 2023 monthly cost for assisted living is $4,750. And while that might seem expensive, the average for Home Health services is $6,700, and $10,500 for a semi-private room at a nursing home.
2. How much retirement savings do you have?
One of the first questions to ask before paying for assisted living with retirement savings is how much savings you have. You should clearly understand your retirement income and expenses to determine whether you can afford to pay for assisted living with your savings without jeopardizing your financial security.
3. What other sources of income do you have?
In addition to retirement savings, seniors may have other sources of income and assets that can be used to pay for assisted living. Social Security, pension payments, and other retirement accounts can all be used to cover the cost of care. Also, real estate can often help by getting a mortgage, a HELOC, or selling or renting out your home for additional income. By utilizing these other sources of income, seniors may be able to preserve their retirement savings for other needs.
4. What level of care do you need?
Assisted living communities provide different levels of care, and the cost can vary depending on the level of care needed. It’s vital to assess your needs and choose a facility that can provide the appropriate level of care at a reasonable cost.
5. What is the quality of the assisted living facility?
Before deciding to pay for care with retirement savings, consider the quality of the assisted living communities and residences. Researching can help seniors find a community that provides high-quality care at a reasonable cost. Factors such as location, amenities, and quality of care should all be considered.
6. What is the availability of community resources?
In addition to assisted living, community resources may be available to help seniors with long-term care needs. These resources can include home health care, adult day care, or other programs that can provide assistance while allowing seniors to remain in their homes. It is helpful to research these resources and consider whether they may be a viable alternative to assisted living.
7. What is the impact on your family?
The impact on your family is one of the most important factors to consider when paying for assisted living with retirement savings. This can include the emotional impact of leaving your home and moving into an assisted living facility and the financial impact on your spouse or other family members. It’s important to discuss these issues with your family and make a decision that takes their needs into consideration.
Paying for assisted living with retirement savings can be a viable option for many seniors who need long-term care. Medicare and Florida Medicaid are of little help, and most seniors do not have long-term care insurance.
But before deciding to use your savings, it is crucial to “crunch the numbers” to ensure it is a viable financial decision. And it would be best if you considered your family’s feelings so you can make the best choice.
At Florida Senior Consulting, we understand the challenges of aging. We are here to help seniors and their families navigate the complexities of long-term care.
Deciding how to pay for assisted living can seem overwhelming. And comparing communities, amenities, financial obligations, and getting the best price and terms can be challenging.
Let us help.
We are a Florida-based company with expert knowledge of the Florida senior market. While senior options can seem confusing, this is all we do.
Florida Senior Consulting helps seniors decide their next best steps and the easiest way to afford the transition.
We have certified staff, professional nurse advocates, and decades of experience in the field.
Senior living should be on your terms, and the choice should always be yours.
Call us, and we will answer all your questions and help you decide what is best for you or your senior loved one.
For peace of mind, call us at (800) 969-7176 or visit us at floridaseniorconsulting.com.