If you or a loved one is thinking about moving to a senior living community, it’s important to get a clear picture of what you’re paying for. Not only do you need to understand the full range of costs, but you also need to know the value the community offers and the financial options available. So, how much does senior living really cost? The answer isn’t one-size-fits-all. The expenses can vary widely depending on factors like the level of care needed, the community’s location, the available amenities, and other personal considerations.
- The National Council on Aging (NCOA) estimates that it cost between the wide range of $1,650 to $16,165 per month to live in an independent living (IL) facility in 2024.
- According to the Genworth’s 2024 cost of care report, the median cost of assisted living (AL) is $5,900 per month, but this varies by location. The same study also established that a private room in a skilled nursing facility (SNF) costs $10,646 per month.
- According to Dementia Care Central, the national average of memory care expenses was $6,160 per month.
The Cost of Living at Home vs. Senior Living
Do you own a home, or are you servicing a mortgage? Is your house or apartment already equipped with aging-in-place modifications, or will you need to invest in them? Remember that the cost of aging-in-place modifications (like installing grab bars, ramps, safer flooring, and better lighting) can range between $3,000 and $50,000.
Are you able to handle home maintenance on your own, or do you need to hire someone to clean your gutters, mow the lawn, prepare meals, or take care of housekeeping? Answering these questions can give you a clearer picture of what it truly costs to stay at home versus moving into a senior living community.
Many senior living communities offer value by including services and amenities that would be much more expensive if you tried to do everything on your own at home. Here are some examples:
- Regular cleaning of your living space, maintenance of common areas, and laundry services eliminating the hassle of managing household chores.
- Restaurant-style dining experience without the burden of cooking or grocery shopping.
- Balanced and tasty meals that meet your nutritional preferences.
- Reliable transportation that ensures seniors maintain their independence and remain engaged with the community.
- Many opportunities for physical, mental, and spiritual growth to keep seniors stimulated and fulfilled.
- Essential utilities like water, heating, and electricity, without worrying about separate bills.
- Around-the-clock protection, including surveillance systems, secured entrances, and on-site security personnel.
- A variety of wellness and fitness classes, ranging from tai chi and yoga to water aerobics and strength training.
Cost Comparison Worksheet
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Monthly Expenses |
Costs at Home |
Senior Living Costs |
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Mortgage or rent |
$ |
$ |
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Property tax/insurance |
$ |
Included |
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Lawn care and yard maintenance |
$ |
Included |
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Home maintenance and repairs |
$ |
Included |
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Utilities (electricity, gas, water, trash removal, etc.) |
$ |
Included |
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Housekeeping and laundry |
$ |
Included |
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24-hour security |
$ |
Included |
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Dining |
$ |
Included |
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Social and entertainment |
$ |
Included |
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Total Monthly Costs |
$ |
$ |
How to Pay for Assisted Living
Navigating the costs of senior living may seem overwhelming; however, understanding the different ways to finance these expenses can make the move smoother. Here are practical options:
Selling a Home
A house is the largest asset for most individuals. By selling your property, seniors can free up considerable capital to cover the entrance fees and monthly living costs in a senior living community. This option not only offers sizable financial resources but also eliminates the hassles of home maintenance and property taxes.
Home Equity
For those who don’t want to sell their houses outright, leveraging home equity can be an ideal way to finance their stay in senior living. Options include renting out the home, taking out a bridge loan, or utilizing a reverse mortgage.
Investment Income
Investment income from bonds, mutual funds, stocks, and other financial instruments can offer a steady stream of revenue to support senior living expenses.
Savings
Many seniors have built up savings over their lifetime, particularly for retirement and potential healthcare requirements. These savings can be used to cover entrance fees and ongoing monthly costs.
Retirement Income
Retirement income from sources like annuities, Social Security benefits, and retirement accounts like 401(k) and IRAs can also cover senior living expenses.
Health Insurance Cover
Generally, private health insurance doesn’t cover senior living. Of course, every plan is unique, so it never hurts to consult your insurer. Some insurance policies could partially cover medical needs within the senior living facility.
Medicare
Medicare does not cover room or assistance with ADLs in a senior living community. However, it might cover specific services offered within the facility, such as skilled nursing care and therapy. You might have additional coverage if you have signed up for a Medicare Advantage Plan.
Long-Term Care (LTC) Insurance
Many LTC insurance policies offer senior living coverage. Bear in mind that these policies usually need to be acquired well in advance, so it may be challenging to purchase a new policy if you want to transition to senior living. The terms of coverage and qualifications (like requiring assistance with at least two ADLs) can vary by policy. In most instances, it is flexible enough to cover some of the senior living costs.
Veterans Benefits
The Department of Veterans Affairs (VA) provides programs such as aid and attendance to eligible veterans and their spouses. This can be a source of monthly payments to help cover the expense of senior living.
State Assistance Programs
Some individual states provide assistance programs for senior living costs. Examples of programs include the Maryland Assisted Living Program and the Indiana Residential Care Assistance Program.
Try to find out if there are assistance programs in your state.
Determining Senior Living Costs
Don’t let financial questions prevent you from enjoying the rewarding and fulfilling senior living experience you are seeking. By considering the bundled services, savings on home-related costs, and available financial benefits, senior living may be more affordable than you initially thought.
You can leverage a mix of personal savings, government/state benefits, and insurance policies to find a viable solution tailored to your unique circumstances.
Have a specific question about the cost of joining a Merrill Senior Living Community? Our team would be happy to hear from you.