Deciding to move into a senior living community is a significant step. It’s one that can greatly enhance your quality of life. But it can also be a shift for your finances. Before making the transition, it’s important to understand if you’re financially prepared. American House Senior Living Communities in Michigan knows that planning ahead goes a long way to lessen any concerns you might have. Here’s how to know if you’re financially ready to move into senior living.
Understand the Cost of Senior Living
The first step in financial readiness is understanding the costs involved. Senior living communities typically offer several types of care, including independent living, assisted living and memory care. Each comes with different pricing based on services, amenities and level of care.
Costs may include:
- Monthly rent or service fees
- Meal plans and dining services
- Housekeeping and maintenance
- Medical care or support services
- Social activities and transportation
Remember, you can always request a detailed breakdown from the communities you’re considering to understand what’s included in the monthly rent and what might be extra.
Review Your Monthly Income and Assets
Take a close look at your current income sources—Social Security, pensions, retirement accounts (like 401(k) or IRAs) and investment income. Next, assess your savings and any assets that could be used to support your move, such as proceeds from selling a home.
Create a budget to compare your expected monthly senior living costs to your available income. If your income covers the monthly costs with room to spare, you’re on solid ground. If not, explore supplemental funding options.
Evaluate Your Long-Term Financial Plan
It’s important to plan not just for the next year, but for the next decade. Work with a financial advisor to project your future needs, especially if you expect to need a higher level of care later on. Senior living communities like American House in Michigan that offer a variety of care levels can help you plan for what you may require in the future.
Ask yourself:
- Will my savings support me for the next 10 to 20 years?
- Am I prepared for increasing healthcare needs?
- What happens financially if my spouse or partner passes away?
Explore Funding Options and Benefits
Many seniors qualify for assistance programs that can help offset the cost of senior living. These may include:
- Veterans’ benefits
- Long-term care insurance
- Medicaid (for qualifying individuals)
- Bridge loans or real estate equity from selling your home
Speak with a professional senior living advisor to explore all available options. The staff at American House in Michigan can also share the financial programs that are available to residents in their communities.
If you’re wondering whether now is the right time to make a move, don’t fret. Take a look at your finances so you can make a decision with confidence.
American House was founded in 1979 to enrich the lives of seniors and their loved ones in an environment that fosters independence, compassion, quality services and meaningful relationships. We provide a wide range of senior living options, including independent living, independent living with assistance, memory care services provided by a third party, respite stays and hospice in Dearborn Heights, Farmington Hills, Rochester Hills, Sterling Heights and Westland.
Call an American House Senior Living community near you today to schedule a tour of one of our beautiful facilities and ask questions to help put your mind at ease if you’re considering a move for an aging loved one, spouse or even for yourself.
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