Senior living is not just about moving to a new location, but stepping up to a lifestyle that gives you more time and opportunity to live your life your way. It’s about finding a place that lets you grow new interests and friendships while gaining the conveniences, services, and care that meet your individual needs.
When you add up the costs of all the amenities you get at most senior living communities, it often works out to be more affordable than owning a home. Think of all the bills and expenses that will be eliminated by the transition from homeowner to resident of a community where most costs are included.
On the surface, the costs associated with independent living or assisted living for seniors are relatively simple and straightforward. Independent living usually consists of monthly rent and a reasonable one-time community fee. Assisted living includes monthly rent, plus costs for additional support and care based on resident needs. However, it’s important to look beyond the numbers to find out what you get for that amount.
Senior living starts to look much more affordable when you realize you’re trading the cost of utilities, home and lawn maintenance, property taxes, and grocery shopping for restaurant style dining, community events, social activities, housekeeping services, and 24/7 on-duty staff.
Independent and assisted living communities like Village Green do not charge large entrance fees like Continuing Care Retirement Communities (CCRC) or Life Plan communities, which can be in the hundreds of thousands of dollars. Because rent is month-to-month and there is no long-term commitment, you don’t risk losing a large upfront investment if you move out.
The bottom line is that when you compare the value of living in a vibrant senior living community with the cost of living at home, you often find that community living can be even more affordable than you think.
Independent and assisted living residents may rely on a variety of personal retirement savings and assets such as:
Proceeds from the sale of a house or condo
Cashing out the equity you have built up in your home over the years is an excellent way to cover the cost of senior living.
Social Security and pension payments
Many seniors rely on fixed income they have contributed to and earned during their working days. It is a good reliable source of funds for monthly rent.
Long-term Care Insurance
Long-term care (LTC) insurance is one of the most common ways residents can pay for the care they receive in assisted living.
Many people are surprised to learn that Veteran’s Administration (VA) benefits can be used to pay for care services in assisted living. For example, a veteran receiving VA monetary benefits can choose to pay any costs related to their long-term care including, room and board, transportation, or extra health care.
Life insurance policy conversions
Some life insurance policies can be distributed as an annuity, providing cash value of the policy to cover living expenses.
Personal retirement savings
People who have been able to contribute to an IRA, 401(k) or personal savings account can use those funds to pay for senior living.
A short-term loan can help make a smooth transition to senior living while longer-term financing is arranged before or during the sale of a home.
Village Green community advisors can refer you to a specialist who can help you evaluate your funding options and create a strategy that works best for you.