For many families, the cost of assisted living is one of the biggest hurdles to choosing an assisted living community for a loved one, making it essential to plan and budget effectively.
While it might feel overwhelming, the good news is that practical steps and resources are available to help you manage and prepare financially for this transition.
These 4 key steps can help guide you and your family when planning a move into assisted living:
- Assess your current financial situation
- Create a budget based on your situation
- Explore financial assistance options
- Plan for unexpected expenses
These steps can provide you and your loved ones with the needed peace of mind so you can focus on quality family time.
How Much Does Assisted Living Cost?
Understanding the cost of assisted living is an essential first step. According to the Genworth 2023 Cost of Care Survey, the national median monthly cost for assisted living in the US is approximately $5,350.
These costs vary widely depending on your geographic location (here in Tennessee, costs are slightly under the median at $4,000 per month), the services offered, the level of care required, and the amenities provided.
Typically, the cost covers:
- Rent or housing & utilities
- Daily activities & events
- Housekeeping & maintenance services
- Meals & dining
- Assistance with daily living
It’s important to note that some communities may offer enhanced services and amenities at an additional fee. For example, our community extends personalized care plans and engaging amenities to create a vibrant, hassle-free living experience.
Understanding these costs upfront helps you effectively prepare your budget to meet your loved one’s needs.
How to Plan & Raise Funds for Assisted Living
Transitioning into assisted living requires careful financial planning. Here are 6 steps to help you make this process smoother and more manageable.
1. Assess Your Current Financial Situation
Before you can create a financial plan, establish a clear understanding of your current financial situation. Consider factors such as:
- Savings & investments
- Income sources (pensions, Social Security benefits, retirement plans)
- Owned assets such as property or vehicles
Compile these details into a comprehensive document to assess your financial situation and determine what changes may be necessary to afford assisted living.
2. Create a Budget
Once you understand your financial position, it’s time to create a detailed budget. Include the costs of:
- Assisted living fees
- Healthcare or medical needs
- Everyday expenses like clothing, personal items, & entertainment
Consider any adjustments that will come with moving into an assisted living community, such as reduced household bills for utilities, lawn care, or meals, which are often included in the monthly fee.
3. Explore Financial Assistance Options
Exploring financial assistance options is vital for families worried about covering assisted living costs. Here are some common resources that might help.
Veterans Benefits
Veterans and their spouses may qualify for the VA Aid and Attendance program, which allows coverage of assisted living costs.
Long-term Care Insurance
If your loved one has a long-term care insurance policy, determine the type of care it covers. These policies are specifically designed to help ease the financial burden of assisted living.
Medicaid
While Medicaid doesn’t cover assisted living costs in every state, many states facilitate programs such as waivers that might help with care services.
Bridge Loans
Short-term loans, such as senior bridge loans, can help families cover initial upfront payments while they arrange longer-term financial solutions.
Nonprofits & Foundations
Nonprofit organizations often provide grants or financial help to seniors transitioning to assisted living. Look for resources in your local area.
4. Plan for Unexpected Expenses
Unexpected costs can arise when budgeting for assisted living. These could include medical emergencies, additional care services, or increased fees due to the progression of health conditions.
Consider building an emergency fund to buffer against potential unexpected expenses.
5. Sell or Rent Out Assets
For some families, leveraging owned assets can help manage assisted living costs. For example:
- Renting or selling a family home could provide a steady income stream or a lump sum to fund care
- Selling vehicles or downsizing belongings could also create additional funds
These decisions can feel emotional, but they are practical ways to confirm your loved one receives the care they deserve.
6. Consult With a Financial Advisor
Professional financial advisors can offer specific guidance tailored to your family’s unique situation. They can assess potential income sources, investment opportunities, and tax benefits to help you afford assisted living costs while safeguarding other financial goals.
Payment Programs Offered by Assisted Living Communities
Many senior living communities offer flexible payment programs or support options to make the transition into assisted living easier.
Our compassionate approach to understanding our residents’ financial situations allows us to tailor solutions accordingly so families can still access the high-quality, accessible care their loved one needs.
Here’s what you may want to ask when inquiring about payment programs with any community:
- Do they have tiered pricing based on care levels?
- Are there discounts or promotional rates for new residents?
- Can payments be deferred in specific circumstances?
Reach out to the community’s admissions team. A clear conversation can help you understand how the community can support your financial planning.
Action Steps for Your Next Chapter
Planning financially for assisted living may seem daunting, but it can become a manageable and empowering process with careful preparation.
By assessing finances, creating a budget, exploring payment programs, and seeking professional advice, you can help your loved one receive the care and support they need without compromising financial stability.
Assisted living is often ideal if you no longer benefit from living independently but don’t require full-time care. At Cedar Hills Senior Living, our team can support you with whatever you need so you can enjoy a life of independence.
Contact us today to see how our team can help your family create a financial plan for moving into assisted living.
