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Moving to a senior living community is a major life decision, one that requires careful consideration and planning. One of the most important aspects of the decision is how you will go about funding the senior living expenses.
5 tips to consider when preparing for funding senior living
1. Start planning before you need long-term care
If possible, assess your current financial situation before long-term care is needed. Preparing before you need long-term care will elevate stress and allow you to focus on your loved one and finding the right senior living community. Having your finances in order in advance allows you time to explore savings, investments, and other options that can grow over time.
2. Evaluate your finances
Assess your current financial situation to determine how much you can contribute towards senior living expenses. Consider your savings, investments, and retirement accounts. Evaluate your current and future monthly expenses to identify areas where you can cut costs or reallocate funds to cover senior living expenses.
3. Understand senior living’s costs
The Genworth Cost of Care Survey estimates senior living costs can be as much as $54,000 per year, depending on where you live and the care needed. Research and gather information about various senior living communities, cost of living spaces, monthly fees, services, amenities, entrance fees, and pricing structures. Understanding these expenses will enable you to create a realistic financial plan.
Download our free Guide to Funding Senior Care & Housing.
4. Evaluate various funding options available to you
Although many seniors pay for senior living expenses with personal savings or retirement accounts, you should consider other options, including insurance, home equity, and government assistance programs.
If you have long-term care insurance, it can cover senior care and senior living expenses. Life insurance policies can also be sold (converted) to pay for senior living.
Even though Medicare and Medicaid don’t cover senior living expenses, these programs can cover health-related expenses and personal care services while living in a senior living community.
Consider selling or renting your home and using the proceeds to cover long-term care. Explore reverse mortgages too, which may be an alternative in some cases.
5. Consult with a financial advisor
The senior living decision-making process can be complex. Between finding a senior living community and emotionally preparing and supporting your loved one, feeling overwhelmed is normal.
Seeking advice from financial professionals can alleviate stress and protect your hard-earned retirement savings.
Financial advisors can help assess your current financial situation by providing key insights, professional guidance on investment strategies, and personalized recommendations about available resources.
Wrap-up
Moving to a senior living community is a significant decision, and you want to make sure you put yourself in the best financial position to make the best choice for yourself or your loved one.
Funding senior living expenses requires careful consideration and financial planning.
Starting before you need senior living, exploring various funding options, understanding senior living costs, and seeking professional advice will help families and their loved ones navigate the financial landscape of long-term care more effectively.
If you have questions about the cost of any of Allegro’s senior living communities, contact us to speak with an advisor. Explore the funding options for paying for senior living, download our free Guide to Funding Senior Care & Housing.
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