Life decisions are often entangled in financial ones, and there is no true example than planning for your retirement. The costs of living after you have stopped working can be further complicated if you have reached the point where you need extra support in the form of assisted living.
We're here to help you get a fuller picture of paying for assisted living with this guide on the likely costs, funding options, and financial aid.
Before you can begin researching assisted living providers and comparing costs, you need to understand more about what services and amenities make up those costs. Here is a broad overview of what we mean when we talk about assisted living.
Assisted living is a type of care support that's a midway point between independent living and full-time nursing care. It's there to assist residents with daily tasks, which might include things like getting dressed or bathing.
Assisted living costs tend to encompass a combination of services, living costs, and extras, such as:
However, you'll find that the packages differ by provider. Your costs may also vary depending on the level and type of care needed as part of your daily assistance. If you need help with cognitive conditions, Corona Del Mar memory care may be a better option.
Let's now examine this a little closer. We'll break down some of the headline expenses and see what is covered. Keep this handy because it will help you compare different providers when you start shortlisting your preferred senior living communities.
The first major expense will be housing. Housing costs for assisted living might include:
It's also important to remember that with housing, you will pay more for a larger floor space. Some will offer kitchens and extra bedrooms.
The next considerable expense is food and dining, which might include:
Some dining services may be offered in a communal space, and others may be a combination of social dining and private meals delivered to your apartment. Some on-site restaurants may provide table service for residents.
Personal care, which is largely the cost of staff, will also be part of your assisted living package. This may include:
If you have more intensive needs, perhaps due to a medical condition, you might see extra personal care costs in your quote. Let the care team know about any extra care you might need.
Amenities will be one of the aspects of care that will likely vary across communities. Some may only offer basic amenities, like communal areas. In contrast, others, like ours, will offer a wider variety of on-site amenities, such as our ocean viewing deck, salon, coffee room, and library.
When reviewing costs, check whether amenities are included in the price or come at an additional fee.
The last expense will cover social and recreational activities. Communities like ours have a full calendar of events, like outings, craft workshops, and quiz nights. Find out what is included in the price and whether any options come with a fee.
Now that you understand assisted living costs, your next question will inevitably be about how you will pay for it.
Senior care financing is significant, and it's a long-term cost, so it is worth taking the time to research all potential sources of funds, including financial aid. This will also help you make the right choice in an assisted living community and ensure your financial decision is affordable.
The most common funding source for your long-term care payment is a combination of personal savings and retirement funds, including 401(k) plans, IRAs, and annuities. These can provide a steady source of income and offer you peace of mind that your monthly costs are covered.
Get a financial advisor to review your current retirement plan and ensure your savings and assets are being put to best use so that the money covers how you want to spend your senior years.
Many seniors will have set aside funds for elder care expenses through long-term care insurance. This insurance model is designed to cover care not part of your health insurance; assisted living fits into that category.
Healthcare insurance premiums increase with age, so the sooner you start investing, the better. Always review the policy terms so you have a clear idea of the coverage you get.
Depending on their income, some retirees may be entitled to social security benefits. Additional aid is available for veterans, too. If you have previously worked in the forces, it could be worth getting advice on whether you are eligible.
Veterans' benefits are funded through the VA (Department of Veterans Affairs). They offer flexible funding options for long-term care, including assisted living. However, you will need to apply first.
If you currently own a house, you may want to use the equity in your home to cover your long-term assisted living costs. You can sell and use the case as part of your care funding or rent your home.
The latter gives you more work to do in the long run regarding managing your property but provides a regular monthly income, and you keep the asset, which you may want to pass on to your family.
Sometimes, family members can help out with care costs. You'll need to have an open conversation with your family about the options, potential costs, affordability, and pros and cons.
Paying for assisted living means planning head. You need to understand what you are paying for and what your primary source of income is. So start early.
At Crown Cove in Corona Del Mar, CA, we have created an affordable, welcoming, and amenity-rich environment. Why not tour our community to see for yourself how it matches up to your dream retirement?