When it comes time for you or your loved ones to go into assisted living, you may wonder how you will be able to afford it. Though the cost can vary, it can be quite expensive in some cases. If you need a little help figuring it out, you’re not alone. Here is a guide to budgeting for senior living.
Do your research.
The first thing you need to do is plan ahead and figure out what services you’ll need to take advantage of and where you will want to go. If you need a visiting nurse, the average cost is between $25 and $60 per hour. However, there are also cheaper options such as home health aides. These are people who have experience caring for the elderly but aren’t certified nurses. No matter which route you choose, each person will have their own varying expertise, so it’s important to interview each one beforehand.
If you’re looking for an assisted living facility, you need to find out how much it will cost per year and monthly. This will help you to budget appropriately. Be sure to ask any center you call about flexibility in the price and if the facility has any financial aid options. Many facilities will offer a discounted price for those who have lower income.
Nursing homes will give you or your loved one more medical care than an assisted living facility can provide. They will be more expensive, but Medicaid and/or Medicare will generally pay for this type of senior care, and there is also the possibility of getting assistance from Section 8 or HUD.
Assess your income and expenses.
After you’ve done the necessary research, compile a list of monthly income sources. Determine your total income including Social Security, retirement premiums, alimony, employment, and any other source of revenue.Once this is completed, assess your properties. If you own a home, car, bonds and shares, or have a savings account, this could serve as alternative income if your monthly income sources come up a little short.
Now that you’ve calculated your income, you need to determine how much you spend monthly. Seniors tend to have more expenses than younger generations due to needing specialized products and services. This part of your budget will include your rent, taxes, loans, mortgages, car premiums, insurance premiums, food, and medications.
Finally, calculate how much disposable income you have per month by subtracting your expenses from your income. This number is what you’ll have to use to pay for senior care. If you’re moving into an assisted living facility, you will no longer have to pay for rent so that expense can be removed. Nursing homes restrict the use of vehicles, so car premiums will also be included into the monthly/yearly income category.
Ask for help.
If you’re having issues with this process, you should consult with a financial expert to help. A financial advisor will be able to find any finances that have been left out as well as find ways to help pay for assisted living that may be available to you based on the state you live in. They may also have their own strategies for paying for senior care.
