Finding the best care is invaluable, yet cost can be one of the biggest concerns for families when considering senior living. However just because your budget may be limited, doesn’t mean senior living is out of reach! You may not realize that there are a number of options to help you in paying for senior living. Here are some of the most common, along with some quick ways to save.
Help Paying for Senior Living
These options may be able to help your budget go further:
- Veterans Aid & Attendance Benefit - Wartime veterans or their surviving spouse may be eligible to receive this non-service-connected benefit to help pay for care in senior living. But the military service criteria as well as the medical requirement AND the financial requirement must be met to qualify.
- Long-Term Care (LTC) Insurance - LTC insurance can help you pay for the cost of home care, adult day care, assisted living, memory care, skilled nursing and hospice by covering services typically not covered by health insurance, Medicare or Medicaid. Keep in mind it is typically necessary to be in good health to qualify so it’s a good idea to plan ahead.
- Life Insurance Conversion – You may be able to convert your in-force life insurance policy into a pre-funded financial account that disburses a monthly benefit to help pay for needs such as home care, assisted living, skilled nursing and hospice. Unlike life insurance, this account is a Medicaid qualified asset.
- Reverse Mortgage – This is a type of home equity loan for homeowners 62 or older who want to access their equity to supplement retirement income. In this case, the lender makes payments to you based on a percentage of your accumulated equity.
In addition, you may be able to use your current assets as collateral such as selling or renting your home, for example. What’s more if you have savings, stocks, bonds, annuities and/or Social Security or a pension - these can help towards senior living costs as well.
Ways to Save for Senior Living
It’s never too late to start saving for senior living, and these tips can help:
- Earn Extra Income – This doesn’t necessarily have to mean longer hours at your day job; it could also be a hobby that you’ve always wanted to turn into a side hustle or it could be fun to try something new as well!
- Decrease Spending – Often, you can make considerable cuts here. Start by looking at automatically renewing subscriptions, entertainment and/or dining expenses, plus cell phone and cable expenses first.
- Catch-Up Contributions – At age 50 you can start making extra contributions to your IRA and 401(k) accounts. Now up to an additional $6,500 for 401(k)s and $1,000 for IRAs according to the IRS.
- Wait on Social Security – While you can collect benefits starting at age 62, most financial advisors recommend waiting until age 70 instead to increase your monthly benefit exponentially.
- Check with the Community – It never hurts to check as the community you’re considering may be offering move-in specials or have pricing options that can help your budget as well.
For more information download our Family Guide to Funding Senior Care & Housing or contact us today to schedule a tour.