You likely won’t know what type of retirement care you’ll need in your adult life until you reach retirement age. Sometimes, you can age in place and only have to worry about housing and food costs. Other times, older adults can be diagnosed with cognitive decline like dementia or diseases like cancer that require more hands-on assistance and care. It’s smart to prepare for senior care options financially regardless, but there are some great ways to make sure you can afford any type of senior living situation when you retire.
Choose the Right Amenities
Some communities boast front lobby concierge or five-star dining options. While you shouldn’t deny yourself amenities or luxuries, if you’re not going to utilize the five-star dining, you should opt for a community with more tailored conveniences. You shouldn’t pay out of pocket for amenities you won’t take advantage of. Specific amenities can raise the cost of retirement homes or senior communities for no reason. Select a community that meets your needs and offers perks you’ll use. You likely won’t need the luxury features in a comfortable community and won’t have to pay luxury pricing. If you don’t need round-the-clock care, don’t pay for that!
Compare Community Rates
There are likely many high-quality senior living communities in your area (or wherever you’d like to retire). No two communities are alike, and they’ll likely offer different rates, too. Don’t be afraid to shop around and compare rates. Choose the most affordable option without sacrificing amenities or quality. Compare the costs of aging in place versus a senior living community and determine what you can afford.
Consider Aging in Place
If you already own a home, one of the most cost-friendly options for retirement is staying there. You will likely have paid off your mortgage by retirement age, giving you an affordable place to stay. Aging in place may not be a good option if you have severe mental or physical decline, but you can also hire in-home nurses or caregivers if necessary. Some can even stay with you 24/7, but this comes with a cost. If you can socialize outside your home, aging in place is a great choice.
Avoid Harmful Communities
You might find some cost-friendly senior communities that may seem a little ‘too good to be true’ in price. While many great communities can be affordable, you will want to vet each community you’re considering thoroughly. Check the Medicare rating of each community and evaluate any past violations. Study user reviews and check local news reports to determine if any negligence has occurred there. Violations can happen in any community, but they can be more likely in communities that try to cut costs by cutting corners. Certain communities like Alden Park Strathmoor in Illinois have faced severe violations and resident complaints of neglect and inadequate staffing. Do your research! The medical care needed after recovering from abuse or neglect will end up costing more in the long run.
Share a Room
You can share a room and significantly cut costs if you want to live in a senior community. Getting a roommate in a nursing home, assisted living facility, or independent living community can help pay for it and give you ample socialization, which is incredibly healthy as you age. You will still get your privacy when needed, but you’ll share many common spaces, which is standard in most senior communities.
Use Senior Benefits
Once you reach age 65, you can access many government benefits like Medicare, Medicaid, and Supplemental Security Income (SSI). These benefits help pay for medical treatments, nursing homes, and general retirement costs. SSI funds can help supplement your retirement savings and pay any excess costs a senior community brings. If you’re a service member, veteran, or police who had to serve military orders, you can take advantage of Veterans Affairs (VA) benefits to help pay for housing and retirement, too.
Get the Right Health Insurance
Not all health insurance plans are equal. Some health insurance plans aren’t adequate for covering chronic conditions and long-term care that older adults often need. You may want to switch your health insurance plan if you can. Medicare and Medicaid are affordable senior health plans that can help cover many housing and healthcare costs. Organizations like AARP can provide additional Medicare plans or benefits to cover even more costs. Do your research and choose plans that can take care of your needs.
Long-Term Care Insurance
Like health insurance, long-term care insurance exists to help pay for anything that health insurance like Medicare or Medicaid will not. While Medicare will cover some senior living costs, it likely won’t cover the full spectrum of long-term care, especially regarding assistance with eating, living, and bathing. You should compare the coverage and rate of long-term care insurance to see if it may help with any senior living costs. This insurance is usually worthwhile for those with long-term conditions like Alzheimer’s or disabilities.
