Depending on the location, the cost of independent living facilities can be between $1,000 and $4,000 per month. And people who live in assisted living facilities tend to pay between $3,000 and $10,000 each month.
The average cost of independent living is going to vary by region and state. However, the expenses are going up across the board for the basics that senior citizens need every month. These costs can include transportation expenses, medication, food, and rent.
The costs go up, even more, when you include utilities such as electricity and gas. Clearly, it isn’t cheap to live in an independent living facility. But by knowing what things cost and how to control those costs, your loved one can be in a better financial situation.
So if you would like to learn more then keep on reading and we will take you through everything that you are going to want to know!
Rising Cost of Living
Social Security provides a cost of living adjustment of just under three percent. While this is beneficial for seniors, any real benefit of this increase is going to be offset by rising costs of energy, healthcare, and other similar expenses.
This increase is based on the country’s inflation rate and is meant to offset the rising costs of everyday goods. According to AARP, more than six million people over the age of 65 live below the federal poverty line.
A growing number of seniors work part-time or delay retirement so that they can make enough money to cover all of their costs.
Traditional retirement options like Social Security retirement insurance, employer-contributed 401K plans, and pension plans might be good options for some seniors. However, these plans are becoming less and less common.
Pensions are becoming a thing of the past. They are usually available for union and public-sector employees. Many workers in the private sector do not get pension plans.
Housing-Related Setbacks
The recent mortgage crisis took a big toll on this country’s seniors. A lot of them fell behind on payments and were foreclosed on. There are also predatory lenders who offer reverse home mortgages and creating additional problems for people across America.
The only reverse mortgage that is federally insured is available via the Department of Housing and Urban Development (HUD) but there are other lenders who will offer this product as well. It is only available to people who own their homes and are over the age of 62.
Sadly, many elders have tax obligations that they are failing to meet. Many have lost their homes or are in the process of losing their homes. This is a crisis that is especially hard in urban communities with low incomes.
It is easy to see why a growing amount of senior citizens can’t rely on their nest eggs to bail them out of dire financial conditions. Some people are turning to loved ones for assistance but a shaky economy is making it difficult for everyone to get by.
It is hard for family members who are also struggling with money problems to help their parents and grandparents. Still, people will always be looking for ways to help their family members. Many adults are buying groceries for their elders and paying their bills too.
While there are a lot of benefits to taking care of a loved one, money isn’t usually one of those benefits. So these family caregivers are also greatly affected by the costs that come with aging. Thankfully, a lot of states offer Medicaid payments to people who care for their aging loved ones that qualify for certain benefits.
Healthcare Expenses
Medicare cutbacks are adding to the costs that some seniors need to now absorb. This is in addition to being the leading cause of nursing home closures because doctors are not being reimbursed as much as they used to.
A lot of doctors are reluctant to accept new patients because they don’t receive the same amount of reimbursement that they used to.
Financial Assistance Options for Senior Living
The average Social Security income isn’t very high. Thankfully, there are some options that can help you lower the cost of paying for independent living. You should look at high-quality facilities, such as John Knox Village of Central Florida (https://johnknox.com/independent-living-florida/), to see what they offer.
Medicaid and Medicaid Waivers
A lot of independent living facilities accept financial assistance. But some locations will only accept long-term care insurance coverage and private pay residents.
A lot of states provide Medicaid payments for eligible seniors. This includes paying for assisted living services such as assistance preparing food, help with housekeeping, and medication reminders.
A lot of states offer some kind of Medicaid program to help eligible seniors pay for assisted living. On top of Medicaid, there are other national and local programs to help offset the cost of senior living.
Retirement Income
Retirement plans are still a good way to save for retirement. Whether it is self-funded or funded through an employer. If you are one of the millions of Americans who don’t have a 401k then you can contribute to your own IRA.
The Importance of Knowing the Average Cost of Independent Living Facilities
Hopefully, after reading the above article, you now understand the importance of knowing the average cost of independent living facilities. As we can see, there are a lot of factors that can affect the cost. So you need to know what you can do to offset these costs.
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