The total number of Americans turning 65 and those that are older is poised to double by 2060, something that’s going to raise the demand for senior housing. In the next few decades, there will be more people considering living in senior living facilities.
While it may remain a complex question, moving to a senior living facility in the next few decades will be a no-brainer for many seniors. However, many seniors will decide based on the costs associated with living in assisted living communities.
According to the top-level national averages published by the Government Accountability Office:
- Assisted living options cost between $1.5k to $6.5k a month.
- Skilled nursing between $1.5k and $10.7k a month
- Memory care facilities may be more expensive but may vary depending on the location
A similar report found that having an all-inclusive retirement living may start at $1.8k on average per month and go up from there. How much this will cost varies greatly, depending on several factors. But what do these values mean? What do you receive from assisted living facilities after you pay them?
In this article, we’ll delve into all the figures associated with the cost of living in a senior living facility and what every type of community can cost.
What Do Independent Living Communities Cost?
It is essential to highlight that most independent communities are ideally suited to seniors who want to live independently, which means no assistance from anyone in the community. But assisted living costs can vary.
Many residents have their own care needs and may often have to choose to sign a contract with a home care provider. This is a decision they would want to make for any number of reasons, including their ability to choose a service they want on an a la carte basis.
How much independent living community costs will vary depending on where you live and the amenities offered. If you choose a place with more upscale dining, resort-like features complete with chauffeured vehicles, and on-site medical services, you will pay more for it than an assisted living facility without these perks.
The median cost of living in senior living communities was around $2552. However, many communities don’t openly reveal their rates because anyone interested in moving in will speak to the community manager or administrator.
When choosing a senior living facility, you always want to choose one that’s upfront about its pricing.
The Price of Living in An Assisted Living Community
A senior living community can be an excellent option for those who want to maintain their lifestyle and independence while still enjoying around-the-clock support when needed. The cost of assisted living can vary greatly. In 2016, the average rent was $3628 a month. However, there are also fees included for care services which are based on an assessment of the resident’s needs.
The service most frequently requested are medication assistance and personal care like scheduling appointments, dressing, and bathing. Generally, meals and housekeeping is part of the package offered, along with events, programs, etc. But again assisted living costs will depend on the state and city of the facility.
The Cost of Living In CCRCs
Continuing Care Retirement Communities (CCRCs) are meant to deliver a higher level of care to residents that need it without having to move over to a new community. Usually, they can choose from three levels of care, assisted living, independent living, and skilled nursing. Some of them also offer memory care which is especially important for residents with Alzheimer’s, but there is an additional cost associated with it.
Now because CCRCs offer varying thresholds of senior care, they are more expensive compared to other communities which only offer independent or assisted living options. Some CCRCs require an initial entrance fee that could hover around $100,000 for a rental and over a million dollars to purchase, depending on the type and size of the unit. Plus, there is also a monthly fee associated with it, which can be anywhere from $1000 to $5000.
What Does It Cost For A Senior To Live At Home Compared to Assisted Living Communities?
While all the statics might blitz you, it is worth understanding those figures in the context of living at home and getting assisted living care. So, the question is this: is it cheaper to live at home or never move out of your present apartment? Well, that depends on the circumstances.
Do you own the house you live in? Do you pay a mortgage? Is the apartment or home well equipped with all the aging modifications in place, or is it an investment? Can you maintain the place or help with the house’s upkeep, or are you paying someone to mow the lawn or fix the gate in the backyard?
Knowing the answer to these questions will help you determine how much staying at home will cost you compared to moving to a community. However, the monthly cost can go up when you factor in aging modifications like installing grab rails, safer flooring, and better lighting. Generally, these modifications can cost an average of $20k to $30k. Now, comparing this to living in an assisted living community, it’s around $48k a year.
That said, you will also incur fees when staying at home, such as hiring a maid for daily cleaning and/or cooking.
It is worth noting that the costs associated with receiving social support and care tend to add up as we get older. But seniors may find that paying a lump sum amount ensures peace of mind. However, you need to determine this as part of deciding what is best for you as many independent living communities offer varying options.
