How to Financially Prepare for Senior Living

Moving to senior living can be stressful without proper planning. Packing your belongings and deciding what to leave behind often become priorities. However, examining your financial situation and finding a community that aligns with your budget is crucial in ensuring a smooth transition. Explore these tips to financially prepare for senior living and facilitate a worry-free move to your new home. 

Talk With a Financial Advisor

There are several financial factors to consider before moving to senior living. For example, you'll need to decide what to do with your home, depending on whether you rent or own, and organize your income, assets, investments, government benefits and savings or retirement accounts. There may even be local or state benefits you qualify for that you don't know about.  

Talking to a financial advisor or an elder law attorney specializing in senior financial planning can help clear this up. These professionals offer personalized advice, assist with estate planning and help identify qualifying financial resources based on your unique situation. Once your financial affairs are in order, you may feel more confident about the move.

Explore Funding Sources

Determining how to pay for senior living is one of the biggest challenges older adults face. It's commonly believed that Medicare covers senior living costs, but this isn't true. Medicare may cover certain services offered in a community, but it won't help with housing costs. However, several other funding sources exist to potentially reduce out-of-pocket expenses, including:

• Long-Term Care insurance. LTC insurance helps cover care costs when you have a condition or disability that requires daily living support or causes cognitive impairments. Exact coverage depends on your policy, but it typically covers Assisted Living or Nursing Home care. 
• Home equity. If you're a homeowner, consider selling or taking out a home equity line of credit to cover senior living costs. You can also use a reverse mortgage to borrow money against your home if you're 62 or older. 
• Life insurance. Some life insurance policies accumulate cash value or have Long-Term Care benefits packaged into their premiums. Review your policy details or contact a financial advisor to understand your benefits. 
• Veterans benefits. If you're a veteran and receive a monthly VA pension, you may qualify for Aid and Attendance or Housebound benefits. These award an additional monthly payment to wartime veterans who have a permanent disability or need daily living assistance. However, you can't receive both benefits simultaneously.

Many seniors also use a combination of personal funds to cover senior living costs, including:

• Investments
• Savings or retirement accounts
• Pensions
• Social Security benefits
• Inherited money

Research Senior Living Costs

Understanding the types of senior living communities and their associated costs can also help you make informed financial decisions. Senior living communities typically offer multiple levels of care to accommodate older adults with varying needs.

For example, Aberdeen Heights offers Independent Living, Assisted Living, Memory Care, Skilled Nursing and specialized care. This allows residents to remain in one centralized location and access relevant services as their health and personal care needs shift. However, each care level carries different costs, and these costs usually rise as you require higher levels of care. Some communities also charge extra fees for specialized services, such as private transportation or salon care. 

Additionally, a community's location and amenities can affect costs. A community with luxury amenities in an expensive city will likely cost more than one with homelike amenities in a rural area. Many communities also offer multiple housing options, ranging from studio apartments to private cottages, which can affect pricing. Consider your budget, health needs and personal preferences when researching community options.

Budget After Moving Into a Community

Financial planning doesn't end once you move to your new home. Creating a budget can help you fully embrace retirement without breaking the bank. Fortunately, many communities charge fixed monthly rates that typically include housing, daily meals and access to campus amenities and activities. 

At Aberdeen Heights, we offer multiple dining options, including a cafe, and a host of community amenities and daily scheduled activities. Taking advantage of these opportunities can help you save money on groceries and entertainment. If you want to explore off-site, seek out places that are free or offer senior discounts. Our proximity to St. Louis grants access to free or low-cost attractions, including Laumeier Sculpture Park and Gateway Arch National Park. 

After calculating your monthly expenses based on your new senior living costs, evaluate your income and savings to determine how much extra money you can reasonably spend each month. Factor in any existing debts from credit cards or medical bills, and set money aside for emergencies or health expenses.

Additionally, plan ahead for vacations, weddings, birthdays or other occasions requiring travel or gifts. This can help you set aside a portion of the money you need each month to adequately prepare. You can also sell unwanted or unneeded personal belongings to earn extra cash. 

Contact Aberdeen Heights for Additional Financial Resources

At Aberdeen Heights in Kirkwood, Missouri, we're available to help with every aspect of the transition to senior living. If you need help researching care costs, finding a financial advisor or budgeting, our compassionate staff can help you connect with resources to navigate your financial planning needs. Call 314-909-6000 to schedule a tour of our community and learn more!