Have you budgeted for the care you may need in your retirement years? Even as we age, we like to envision a retirement in which our bodies can still do all the same things we did when we were younger. But the truth is that many of us will need more help as we age to perform daily tasks. This is why it’s so important to budget for a retirement community which offers assisted living facilities.
Costs for senior living arrangements such as assisted living, where one lives in a senior community while receiving help with everyday tasks such as dressing, bathing, laundry, or housekeeping can vary depending on the types of care needed. Start planning your budget now, and take a look at the resources listed here where you might find additional financial resources to help.
Planning Your Budget
According to the 2014 Cost of Care Survey released by Genworth Financial, Inc., the national median monthly rate for a one-bedroom unit in an assisted living facility is $3,500. That’s about $42,000 a year. While this rate often includes taxes, utilities, maintenance, and meals, if you have not budgeted for this expense, it can seem intimidating. Will you or your loved one need transportation? Ensure that this cost is either included in your monthly rate (many assisted living communities offer transportation to shopping centers and local attractions) or that you account for these in your budget.
Assisted living arrangements typically must be paid with one’s private financial resources. Many find that selling or renting their current home, when paired with retirement savings and social security, can more than cover the costs of care. While there are some government subsidies that may pay portions of assisted living costs, most seniors should expect to come up with these funds on their own.
Here are some helpful resources for exploring your funding options for assisted living and other senior housing options: