While you may be considering a Senior Living Community, you may be afraid that the costs will be more than your budget can handle. Before you decide that you can’t afford the cost of assisted living, you will be surprised to find out that the prices are going down in many states across the US. Read on to find five simple hacks how to make Senior Living more affordable.
Our five tips for reduced costs of Senior Living are:
1. Ask about price flexibility.
Many assisted living communities offer incentives and move-in specials. Find out whether you can negotiate the monthly price for different amenities, room options, room shares or services, based on your family’s specific care needs. Some assisted living communities offer “a la carte” pricing, making it possible to choose some services and take care of others yourself. If a family member is available to fill in care gaps in a more cost-effective way, take advantage.
2. Be strategic with the location.
The cost of assisted living varies by location, so choose a less expensive location, if possible. If a sibling lives in a less expensive area, consider looking there or even at an out of state community that is more affordable. Often outlying communities and suburbs may be more affordable and they’re only an extra 20-30 minutes away.
3. Do your research.
Try not to make a drastic, last-minute decision when it comes to choosing an assisted living community. Be strategic with your financial planning, seek an expert financial advisor’s advice and shop around for the community that fits your family’s needs best. Ideally, create an assisted living plan ahead of time while all decisions are lucid. If there’s a specific location that seems best, join a waiting list, if needed. If you wait until the last minute, you may end up paying for an expensive community that’s not a good fit.
4. Take advantage of Health Savings Accounts.
Being proactive with your retirement healthcare costs can save you thousands of dollars each year. For example, Health Savings Accounts (HSA) and Flexible Spending Accounts (FSA) can save you taxable income. Plan ahead and contribute to an HSA tax-free and use the funds for medical expenses. Unused funds roll over every year and surplus funds can be invested. There are also investment tax savings available with these accounts and a qualified financial expert can help you learn more about these savings.
5. Take advantage of long-term care insurance.
If you are unable to pay for assisted living out of pocket and the remainder of costs are not covered through private insurance, Medicare or Medicaid, long-term care insurance can be your friend. Long-term care insurance can supplement care costs so that your family isn’t struggling to finance assisted living long-term care.