assisted living cost
If there’s one thing we can count on to happen year after year, it’s a rise in the cost of living. Be it small or great, it’s bound to happen to some degree. For most people, this discussion focuses on things like grocery bills, or how much it takes to fill the gas tank. For seniors and their families, however, it also includes concerns about the rising cost of assisted living. Over the last couple of years, prices have gone up in many parts of the country as COVID-19 strained supply chains and staff availability. Even without a pandemic, though, researchers are forecasting that assisted living will become even harder for seniors to access by 2033.
Fortunately, one thing that helps is to have a wide variety of assisted living facilities to choose from. For example, assisted living choices in San Diego range from basic to luxury accommodations, with sites like Seniorly helping people find the best options in cities around the US.
What the NORC study predicts about the price of assisted living in 2033
Whether you’re looking at retirement homes or home care, there’s no question that assisted living is quite costly – and no question that it’s only going to become more expensive over time. While this is to be expected, it’s been predicted that several different factors may combine to make assisted living inaccessible for the next decade’s seniors.
NORC researchers at the University of Chicago analyzed patterns in income growth, costs of living, and more for the next ten years. According to their estimates, it’s possible that among middle-income people over the age of 75, more than 11 million of them won’t be able to pay for assisted living. Plus, since they won’t qualify for assistance from Medicaid, they could be left to figure out some less suitable alternative.
To make matters worse, these same seniors are less likely to have the safety net of spouses or children. Family support systems are something that many seniors rely on, whether it’s for financial support, live-in care, or something in between.
Meanwhile, an estimated one-third of people under 85 will probably have some kind of cognitive impairment, with the number rising to 40% for people who are 85 or more. Just over half of seniors will also have three chronic health conditions or more, and will likely struggle with their mobility. These predictions highlight the need for some form of assisted living, while also pointing out the dwindling ability of seniors to afford it.
Why seniors need assisted living
As people age, things often get more difficult. Physical tasks become harder, and forgetfulness may become an issue. Even seemingly trivial sicknesses can turn into medical crises, and matters of basic hygiene could start to fall by the wayside.
What’s the right choice when this starts to happen? For most, the answer is to arrange for some form of assisted living. This decision can be almost as hard for the family as it is for the senior, as they often bear some of the responsibility. From moving their loved one to a different place, to shouldering some of the facility costs, many families are instrumental in looking after their elderly relatives’ well-being as they age.
Assisted living vs. home care
Since most families don’t opt to take care of their loved ones themselves, the primary choices become assisted living or home care. Assisted living facilities tend to be the top pick, mainly because they’re more affordable compared to at-home care. However, this isn’t to say that they’re cheap. For example, even in the cheapest counties in California it costs around $3,450 per month to stay at an assisted living facility. If someone were in one of the more affluent areas of the state, they’d pay up to $7,000+ per month. If Alzheimer’s residential care were needed, the price tag would be up to 30% more.
Home care is much more personalized, but also significantly more expensive. The average price of a home health care professional in California is $32 per hour, which adds up quickly. Even if they were only there for 8 hours a day, 7 days a week, that would add up to $7,680 per month. However, many seniors end up needing 24/7 assistance with things like meals, medications, bathing, getting in and out of bed, and more. If Alzheimer’s or dementia is part of the picture, round-the-clock care may be essential. For the people who can afford it, home care is the best option since the senior can be cared for in familiar surroundings. For anyone who’s on a budget, though, an assisted living facility is definitely a better option.
How do people afford assisted living?
When someone is looking at their options for assisted living, the final choice may depend on their budget. Even after years of planning and saving, they may only have enough to cover the basics. Most people draw on personal savings, pension payments, retirement accounts, or similar resources to pay for assisted living. Their children sometimes also help out, either with all or part of the monthly bill.
There are other options besides personal savings accounts, though. Some seniors plan on selling their houses once it’s time to move out, since they won’t have any use for them when they’re in an assisted living facility. However, others prefer to keep the house as a sort of “rainy day” fund, in case there’s a sudden medical emergency or some other unexpected cost.
Another option is to find a third party who would buy their life insurance policy. Some benefits will still be retained, but part of the value would be reimbursed in cash. The life insurance company will also buy back the policy, also for cash. This would mean giving up the benefits entirely, but the trade-off is a better life in an assisted living facility.
Conclusion
The next decade will be increasingly tricky for seniors to navigate as they search for affordable assisted living, but hopefully some forethought and creative planning will help them get the care they need.