Like retirement, senior living requires planning and budgeting for your future. A common mistake among many middle-aged and older adults is not creating a financial forecast far beyond retirement. Senior living, however, can be a substantial financial investment and will be less troublesome if you begin budgeting early on. Gathered below are three crucial budgeting tips for senior living.
Tip 1: Set a Budget
As of 2015, the cost of Minnesota senior living communities is approximately $20,000-$40,000 annually, while nursing home care is approximately $84,000-$96,000 - both fluctuate based on the type of housing community and amount of care each resident requests. These costs are high, and the growth rate is predicted to keep rising 2%-5% every 5 years.
To adequately set a senior living budget, it is essential to find the estimated costs of which you could be paying. To do this, you can go online and take advantage of resources like Genworth where you can calculate your expected senior living costs based on your age, location, and living preferences.
Once you have an idea of the potential cost for your senior living, establish a budget. Choose an amount to save or set aside monthly, quarterly, and annually. Set it, and stick to it.
Tip 2: Plan Ahead
Begin researching senior living communities that are of interest to you. Location, size, price, and accommodations will often play a large role in this decision. Narrow the search down to 1-2 communities that you might like to join. After doing so, compare costs, care options, and amenities. Important financial questions to have answered include:
- What housing options do they offer? How much do they cost?
- What is included in each monthly payment?
- Do they require an entry fee, community fee, or damage deposit?
- Are there additional fees?
- Do they offer any financial incentives?
- Consider possible health accommodations you might need in the future. How will each community accommodate to you? How much do these accommodations cost?
Doing your homework and exploring options ahead of time can potentially save you stress down the road by ensuring you’re properly accounting for the expenses.
Tip 3: Find a Trusted Financial Advisor
Find a knowledgeable financial advisor who you trust to help you plan and budget for senior living. There are a variety of options for those seeking senior living financial assistance. Long-Term Care Insurance helps older adults pay for costs that private insurance providers may not. By talking to a professional who is familiar with financing for senior living, you will be able to explore the best options for your specific needs.
Planning and budgeting for senior living is very important for any adult over the age of 50. Taking these steps to design a successful financial plan can ensure more monetary flexibility and less stress when you are ready to make your move into a senior living community. When you’re ready to begin looking at senior living communities, click here to download our free printable document 30 Questions to ask at your Senior Living Community Tour.