Financial Planning For Assisted Living

Because people are living longer and longer, planning for the financial future is more important than ever. The cost of housing and senior care continue to increase, and we are stretching our retirement funds to their limits. Many older ones try to live at home as long as possible to save money, but a sudden downturn in health can happen to anyone. When it comes to financial planning, even if we hope for the best, it is important to plan for the worst.

Whether you hope to stay at home or are searching for an Assisted Living community, there are a few universal tips to help with the costs of senior living.

An older man is worried about the future
  • Finances are complicated. It can be a good idea to sit down with a trusted financial adviser who understands the ins and outs.
  • Take your time making decisions to ensure they are the right ones for you and your family.
  • Start saving as early as possible.

One of the best things that you can do is to create a trust or a will and have your affairs in order. It might seem morbid, but financial planning actually provides your loved ones with great peace of mind. For instance, if you should suffer from a debilitating disease or perhaps develop Dementia, stating your wishes makes it easier for family members to make medical and financial decisions for you if you reach a point where you cannot make them for yourself.

Plan Ahead for Assisted Living

Assisted Living can be an excellent option for a person who is generally in good health, but has some mobility issues and needs a bit of help each day handling the typical chores of life. These include housekeeping, cooking, cleaning, grooming, etc. However, the average monthly cost of Assisted Living in California in 2023 was $6000 a month!

This may sound like a high cost, but keep in mind all that it includes: rent, housekeeping, groceries and cooking, cleaning, and assistance with other Activites of Daily Living. If you live in a private home, you incur monthly expenses such as food, utilities, household repairs, car insurance, car repairs and so on. When you live in a facility for Assisted Living, you will have few expenses beyond the monthly fees charged by the facility. If you calculate how much you currently spend each month, you may find that residence in an Assisted Living community is comparable to the cost of living in your private home. Still, there are a few things you can do to help cover the cost.

Long-Term Care Insurance

This is a type of insurance that will cover some or all of the costs of Assisted Living, Skilled Nursing Care, or Memory Care. These policies can be quite expensive, and they generally require a deductible until a person has spent more than 90 days in a facility. If the only long-term care you ever need is a two-month stay in a Skilled Nursing facility, then your Long-Term Care Insurance won’t be helpful. If, however, you move into assisted living in Escondido permanently, then long-term insurance can be worth the cost of the premiums.

Government Funds

Many people believe that Medicare and Medicaid (Medical in California) will cover the costs of Assisted Living. However, Medicare does not cover any of the costs of Assisted Living. This is a program that provides medical care only, not long-term housing and non-medical care. Medicaid can sometimes be used to cover the cost of assisted living or residence in a nursing home, but not all facilities accept Medicaid.

You can use Social Security to pay for Assisted Living; although, the amount you receive each month may not be enough to cover all of the monthly fees. If you have retirement income and Social Security, you may have the funds you need. It is possible to find a place to suit just about any budget restrictions. But having money set aside or long-term care insurance provides you with more freedom regarding the facility that you can select.

It’s never too late to begin planning for your retirement and your future. However, if you or a loved one has reached a point in life where you need Assisted Living, give Care Placement a call today at (619) 660-8814. We can find you a new home that fits your budget. There are many options to consider throughout San Diego County, and we are sure to find several options that suit your needs.

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