Are you keen to be free of the responsibilities that come with homeownership, such as housekeeping and maintenance? Or is juggling numerous bills every month getting to be too much? When you make the move to a senior living community, you only pay one all-inclusive sum monthly for everything you need. In this financial guide, we share with you more about how you can fund your senior lifestyle.
Senior Living Vs. Aging in Place – the Finances
At first glance, senior living fees may seem high. However, after doing the calculations, you will find that aging in place can cost just as much if not more. Below is a list of what you pay for when aging in place:
- Mortgage payments, if not already fully paid off
- Homeowners’ insurance
- Property taxes
- Cost of maintenance tasks undertaken around the house
- Cost of emergency repairs when appliances or systems break down
- In-home care
- … and more!
The monthly rent you pay in a senior living community is inclusive of everything you need, including three freshly prepared meals a day, housekeeping and maintenance services, and use of shared amenities. Assisted living residents will also have access to the personalized care they need with one all-inclusive payment, such as medication management, personal care assistance, and more.
Funding Senior Living
If you have decided that moving to a senior living community is the best option for you, the next step is to start looking into funding options. Below are some ways you can fund the retirement lifestyle that best suits your needs:
- Selling or Renting Out Your Property
One reason transitioning to senior living can be so emotionally fraught is because of the need to let go of the home you have spent many years in. However, if this move is in your best interests, you will find that the money coming in from selling or renting out your property can fund your senior lifestyle comfortably for years.
- Savings and Investment Income
If you have savings stowed away to fund your retirement lifestyle, here is where it will come in really useful. Passive income, such as dividends from investments you have made, is also a major source of funding for some residents.
Do you have long-term care insurance that can contribute partially or fully to your senior lifestyle? If you require assistance with daily living activities, long-term care insurance can be a godsend. This source of funding can help you to pay for assisted living and specialized care. A long-term care insurance policy can give you the flexibility and freedom to select the senior lifestyle you want with fewer financial restrictions.
- Pensions and Benefits
If you are due a pension for the years of work you have put in or any form of benefits, such as Veterans’ benefits, this can be one way of funding your senior lifestyle. VA Aid and Attendance benefits are paid monthly and can contribute towards the cost of care for housebound veterans and/or their surviving spouses.