What is Assisted Living and How Much Does it Cost?
As we age, we naturally start thinking about what the next phase of life looks like. That includes where we’ll retire, what our golden years will look like, and what kind of help we may need to manage daily life. Assisted living is a long-term residential option that provides independence while still having the resources on hand to get through difficult days. Let’s explore assisted living and the costs associated with it.
What is Assisted Living?
Assisted living is a residential community that helps provide for the elderly who may not be able to live independently anymore. These seniors may need a little help daily, or they may have medical conditions or a disability. Assisted living facilities have the on-site staff and amenities to properly care for and provide residents with everything they need to enjoy life and maintain their independence.
Generations communities provide a number of services like housekeeping, transportation, laundry services, meals, as well as activities for residents so that it is easier for residents to be active and engaged. We understand that assisted living isn’t about what you’re giving up in life. It’s about what you keep doing to enjoy every day.
How Expensive is Assisted Living
The answer varies depending on the community, apartment size, number of services needed, and location.
The cost depends on where you live, what type of assisted living community you choose, and other factors. According to a report from Genworth Financial, the annual national median cost for assisted living was $54,000 per year in 2021. Monthly costs change dramatically based on where you live, ranging from $3,000 to $7000.
Assisted living is more than just a room. It includes everything else the community provides and more, depending on individual needs. Planning for retirement and long-term care as you get older is something everybody needs to make time for before they reach their golden years.
What Options are there to Pay for Assisted Living?
There are plenty of options out there to pay for assisted living. Everything from your retirement fund, pension, Social Security, low-income grants, insurance, and even your family can pitch in to make assisted living an affordable choice.
Saving early is essential to being able to be comfortable in the future with an assisted living community. Most assisted living residents pay with a combination of funds from retirement and supplemental income like Social Security.
Several states provide low-income grants and other resources for seniors looking at assisted living. Unfortunately, Medicare doesn’t cover most assisted living options even if you need it. Many believe it will and find out too late that it doesn’t.
How to Plan for Assisted Living?
If you or your parents are looking at assisted living options for the future, you can never start planning too early.
Ask yourself these questions to get started:
- What type of assisted living community are you interested in?
- Where do you think you might live during retirement?
- What insurance covers assisted living, and can I afford it in the future?
- The surefire way to plan for assisted living is to save as much as you can as early as you can. Most jobs offer a 401k, pension, or other types of retirement plans. We recommend investing in one and maximizing your contributions when it’s financially responsible to do so.
You can’t predict the inflation of monthly costs for assisted living. Saving is essential to being able to afford a retirement community in the future.
Resource: National Investment Center for Seniors Housing & Care
We’ve created this resource to help you get the conversation started.
We’ve compiled a list of the most important questions to ask.
Differences between Assisted and Independent Living.