Work & Money

Can You Afford Senior Living Housing?

By Rodney A. Brooks Monday, July 8, 2024 14 Comments Share This:

The senior living community recruitment drive floods retiree mailboxes with glossy pamphlets showing spacious apartments, fancy dining rooms, gyms and swimming pools. It looks great – but look before you leap.

The choices abound, but how do those of us nearing retirement cut through the chatter choose a senior living community that works for us. And probably most important of all, what happens if you run out of money?

Some tips from the experts:

Do the Research

Choosing a senior living community is a big decision that requires thorough research and financial planning, says Tom Mathews, a Certified Financial Educator and author of the new book “Change Your Literacy – Change Your Life.” “By understanding the types of communities available, such as independent living, assisted living, and memory care, you can better evaluate which one suits your needs.”

Additionally, he says, familiarize yourself with local, state and federal regulations to ensure that you select a safe and compliant community. “Financial considerations, such as costs, payment options, and potential financial aid, should be carefully reviewed to make an informed choice that ensures a comfortable and secure retirement,” Mathews notes.

The research process can be daunting, says Kelli Smith, director, financial planning at Edelman Financial Engines. “You should understand the current need as well as future potential need, which helps narrow down the search to the communities that are most likely to offer what you need,” she says. Also, Smith adds:

Do a basic web search of your area (some states have websites dedicated to assisted living resources)
Get referrals from friends and family or from physicians and other healthcare providers
Narrow down communities and do more online research. Many will offer information about the cost and even calculators on how to pay.
Make sure you read reviews. You find out the little things not mentioned on websites.

Review fees and other costs

Make sure you understand and review fees and other costs. Research the upfront entrance fees required, says Smith. “These fees prepay for your care and are often substantial. Since they can vary widely between communities and are sometimes non-refundable, it’s crucial to understand what you’re paying for.”

Evaluate monthly costs as well, Smith urges. “Monthly fees can differ based on the level of care required, type of housing, and whether you are renting or buying. They can also increase if you need more intensive care. Budget for these potential increases; compare the average costs of $500 to $3,000 across different facilities.”

Visit the Sites

Do site visits. “Take the time to visit potential communities and observe the facilities, staff, and residents,” says Mathews. “Ask questions about services, amenities, healthcare options, and daily activities to get a comprehensive understanding of each community’s offerings.

Check with your Experts

Talk to your financial planner and healthcare professionals. A financial advisor can help you determine whether a senior living community is a viable option for you, says Smith. “They can help you understand the long-term implications of each contract type and ensure that your retirement savings and income can support your living decision,” she says.

“They can provide valuable insights and help you navigate the complexities of the decision-making process,” adds Mathews.

Check your Checkbook

One big concern among retirees is always running out of money. That’s one reason you need to have a budget in place and stick to it. That’s also the reason you need a financial professional involved. “Regularly review your financial situation with your planner to adapt to any changes in fees, care needs, or personal circumstances,” says Smith. “This proactive approach will help ensure you can comfortably afford your chosen lifestyle in the community.”

But if you do run out of money, there are options: downsize to a smaller, less expensive facility; finding part-time work to get additional income; or seek assistance from family members – or all of the above.

By being diligent and proactive, you can find the best fit for your needs and lifestyle, ensuring a fulfilling and worry-free retirement, Mathews says.

YOUR TURN

Have you moved into senior housing? Any tips to share? Let us know in the comments!

Rodney A. Brooks is an award-winning journalist and author. The former Deputy Managing Editor/Money at USA TODAY, his retirement columns appear in U.S. News & World Report and Senior Planet.com. He has also written for National Geographic, The Washington Post and USA TODAY and has testified before the U.S. Senate Special Committee on Aging. His book, “The Rise & Fall of the Freedman’s Bank, And Its Lasting Socio-economic Impact on Black America” was released in 2024. He is also author of the book “Fixing the Racial Wealth Gap.” His website is www.rodneyabrooks.com

Your use of any financial advice is at your sole discretion and risk. Seniorplanet.org and Older Adults Technology Services from AARP makes no claim or promise of any result or success.

COMMENTS

14 responses to “Can You Afford Senior Living Housing?”

EA:

Saturday, July 13, 2024 at 12:54am

Thank you for the advice and information. I retired 3 years ago at 70 and looking at over 55 communities near my family. Unfortunately the real estate market and mortgage rates have not been in my favor, hope to get something soon!

Reply to EA
Mary Donegan:

Friday, July 12, 2024 at 7:59pm

My husband and I have been in a senior community in Columbia Md. for two years and we are happy here. It is a rental, so no huge deposits. However we have an assisted living unit and a memory care unit….no nursing care. I am in good shape, but my husband is incapacitated by a stroke. Had I stayed in my home, I would not be able to get out much and would have little contact with people. Here i am part of a large community where my needs for social contact are satisfied…

Reply to Mary Donegan
Cynthia:

Wednesday, July 10, 2024 at 3:43pm

I would like to hear about 55+ communities. Has anyone looked into these communities? I am looking at one in Laurel MD. I believe these communities are different from senior living facilities. Is that correct?

Reply to Cynthia
1. Jim Kay:
  
  Friday, July 12, 2024 at 1:30pm
  
  I live in a 55+ community. This community has an activity director, and includes, pool, hot tub, small gym with a bistro, bar-b-que, community room, library, and activity room. There is no food service on the property. All units have full kitchens and washer and dryer. Care services are residents responsibility to arrange.
  This 55+ community has a wide range of ages. About 1/3 are still working and only occasionally show up for planned events.
  
  Reply to Jim Kay
LAF:

Wednesday, July 10, 2024 at 4:43am

You really need to do your due diligence. Don’t go by some slick ad! Try to find someone who knows someone who lives in that senior apartment complex you’re considering. That’s how you’ll find out whether it’s a good place to live. Some elderly housing management companies don’t care about their residents. It’s all about the people in charge. When visiting the site for an application, look around and see how well kept up the place is, whether garbage is piled up in the refuse rooms, etc.

Reply to LAF
Ellie:

Wednesday, July 10, 2024 at 1:32am

Mr. Brooks covered every aspect about senior housing options.
The bottom line is money. I know the difference just from knowing what’s available in my area. One couple I know saved for many years because they wanted to go into the best one . My sister had no money & had to go into nursing home using Medicaid. There’s a big difference that’s for sure.

Reply to Ellie
Nancy H:

Tuesday, July 9, 2024 at 11:49pm

Thank you. Most helpful.
I wonder if Medicare or another government or private group would help pay some of the cost if your money runs out.
It is inconcievablemy family would pay, and I can no longer work.

Reply to Nancy H
Rosedala:

Tuesday, July 9, 2024 at 8:21pm

Thank you so much Mr. Brooks, for very good, sound advice and information on the matter. I’m not at that point yet (though I’m almost 97 yo), but I want to keep this important information with me in case I do need it before my end :)
Right now my problem is fear of fraud when I’m gone since I no longer have family or close friends to see that fraud isn’t perpetrated. If anyone has ideas, other than “trust your lawyer, executor, etc.” please share with me? Thanks in advance. :)

Reply to Rosedala
1. Rob:
  
  Wednesday, July 10, 2024 at 10:35am
  
  Hello Rosedala,
  That is great you doing well at 97!
  The fraud/scam issue is a scary one to think about. My father (who just turned 90 and is now in a memory care unit) almost lost just about everything to a scam/fraudster. AARP has some great resources on this:
  https://www.aarp.org/money/scams-fraud/
  The one that hit home for me was the article on “keep those with cognitive decline safe from scams.” …
  
  Reply to Rob
2. rob:
  
  Wednesday, July 10, 2024 at 10:36am
  
  Hello Rosedala,
  That is great you doing well at 97! The fraud/scam issue is a scary one to think about. My father (who just turned 90 and is now in a memory care unit) almost lost just about everything to a scam/fraudster. AARP has some great resources on this: https://www.aarp.org/money/scams-fraud/
  The one that hit home for me was the article on “keep those with cognitive decline safe from scams.” …
  
  Reply to rob
3. Rob:
  
  Wednesday, July 10, 2024 at 10:39am
  
  My father fortunately had an excellent financial advisor who immediately called me when my father put in the request to liquidate his retirement account. I had to call and convince him to stop the liquidation. Fraudsters know how to manipulate people, leading them to be suspicious of those they can trust. Talk with people you can trust ahead of time. Figure out a plan to protect your funds My father’s financial advisor suggested that both he and I must both agree and sign off on major transfers.
  
  Reply to Rob
Kate:

Tuesday, July 9, 2024 at 7:43pm

I have the ability to evaluate senior housing options, but affordability
continues to be the most disqualifying element of available residences.
Most Sincerely, Kate

Reply to Kate
Lolly:

Tuesday, July 9, 2024 at 7:17pm

Do the research and make sure you can afford it. That’s the synopsis of this mini-article.

Reply to Lolly
V*:

Tuesday, July 9, 2024 at 7:12pm

I think family-owned facilities are way better than corporate-owned.

Reply to V*