How Much Does Assisted Living Cost?

When you first set out to explore assisted living communities for your aging parent, it can be daunting. You might be unsure of how senior living pricing works for each level of care. Fortunately, this guide will give you a good grasp of what to expect in assisted living costs.

There is no one set price for long-term care; it all depends on several factors in your loved one’s life. Learn more about the standard cost of care in assisted living and the best ways your family can pay for it.

Breaking Down Price Factors in Assisted Living

When asking questions like, “How much does assisted living cost per month?” you’ll have to answer some other questions first. These factors influence the price of assisted living in various communities and locations across the country.

The Level of Care Your Loved One Needs

In a typical assisted living community, more intensive and frequent medical and personal care needs usually increase the monthly cost. This means that the more support your loved one needs to complete activities of daily living (ADLs), the more they’ll have to pay. Keep in mind that not every assisted living community uses this pricing structure.

From most to least independent, the levels of senior care are usually as follows:

• Retirement communities

• Independent living (sometimes used interchangeably with “retirement community”)

• Assisted living (middle-of-the-road care)

• 24/7 in-home care provided by a home health aide or other caregiver

• Memory care for Alzheimer’s and cognitive problems

• Nursing homes (skilled nursing care) for complex medical conditions and injuries

• Full-time medical care provided in a hospital or similar medical setting

It can get confusing choosing the type of care your loved one needs because skilled nursing care may be available in assisted living or memory care communities. Some communities have several sets of residential care options that all belong to one larger community, and residents can easily move where they need to without leaving the general location.

Think about the level of support your loved one needs in their daily life as you approach assisted living costs. Ask questions when touring and browsing the communities you’re considering.

On-Site Amenities and “Extras”

Any good senior living community will offer amenities to enrich your loved one's life. Amenities typically include things like holistic wellness programs and diverse dining options for your loved one to enjoy.

Social activities like group classes and outings are considered amenities. Some communities charge more for offering these “extras” or “luxuries” that aren’t considered basic medical necessities.

The Location of Senior Housing

Location influences price a lot. This makes sense because the local economy usually dictates how much all residential communities cost. Assisted living communities in big cities or popular retirement areas usually come with a higher average cost.

How Much Does Assisted Living Cost on Average?

The 2023 Genworth cost of care survey reported that the average cost of assisted living in the United States is $5,350 per month. This totals out to $64,200 per year. The national average takes communities of all price points into account, so this number should be used as a reference point rather than a strict guideline.

Your loved one’s out-of-pocket costs may look different than this. There are many resources and tools your family can use to pay for the care services your loved one needs.

Use Our Affordability Tool to Get a Realistic Estimate

Our built-in senior living affordability tool gives an objective, realistic assessment of what you can afford. You don’t have to share details about your finances to get your results.

Can I Afford Senior Living?

In this survey, you can decide what information is most important to obtain. The survey will ask about your loved one’s top care priorities and general financial status to give detailed results. Your estimate will give you a starting point when tackling assisted living costs.

Paying for Senior Care: How to Pay for Assisted Living

Don’t panic if you don’t get the results you thought you would from our affordability tool. There are many different options to help you pay for long-term care.

How do seniors pay for assisted living? It seems complicated to navigate. In reality, many seniors and their families can easily pull funds from different places in their financial portfolios to cover the average monthly cost of senior living.

Social Security Income

Seniors often receive SSI each month, and this can contribute to covering out-of-pocket assisted living costs. SSI may cover some of their monthly fees or initial move-in costs, depending on their eligibility for benefits.

SSI benefits depend on your loved one’s work history and previous earnings throughout their professional life. If your loved one doesn’t get much money from Social Security every month, consider using other funds to supplement their monthly costs.

Long-Term Care Insurance

Unfortunately, most assisted living costs are not covered by Medicare or regular health insurance. That’s where long-term care insurance comes in.

Just like any other insurance policy, long-term care insurance charges a premium that covers your loved one should they need healthcare services tailored to older adults. This coverage applies to senior living options like assisted living facilities.

Once your loved one needs to pay for long-term care, they’ll be reimbursed up to the cost limit that they previously agreed on with the insurance company.

Life Insurance Policies

Your loved one can cash in or receive a life insurance settlement for existing policies they have on themselves. This is a good option if the benefits of assisted living outweigh the potential benefits of a life insurance payout.

Keep in mind that life insurance settlement values are typically greater than cash surrender values.

Whole-life policies are notorious for having limited returns compared to the amount the participant has paid into them. While this is not intended as financial advice (you should always consult your advisor or lawyer first), it may be especially wise to cash in or settle any whole-life policies your loved one has.

Veterans Benefits

The Department of Veterans Affairs offers some financial assistance for veterans or spouses who need assisted living. This falls under the Aid and Attendance benefits that families with veterans can qualify for.

Essentially, Aid and Attendance specifies that housebound veterans or surviving spouses who need help with the basic activities of daily living qualify for extra financial assistance.

According to the VA, eligibility is based on meeting one of these criteria:

• Someone has to help you with ADLs like bathing and dressing

• You’re bedbound for most or all of the day

• You’re in a nursing home due to a mental or physical disability

• You have limited eyesight (with specific vision criteria)

Contact your local VA if you have questions about your eligibility.

Retirement Funds

If your loved one contributed to a 401k or IRA of any kind during their working life, those funds could be used to cover their care costs.

It makes sense to dip into retirement funds before using other assets to pay for care. After all, retirement money was always intended to help your loved one thrive after they stopped working. Assisted living is one of the best ways to ensure they get the care they need without sacrificing their quality of life.

Personal Savings and Investments

Was your loved one a diligent saver during their working life? They may have savings and brokerage accounts that cover a significant portion of assisted living costs. It’s wise to ask them about their known financial accounts and make an agreement on what will be used to pay for their residential care. This should happen before resorting to selling assets and personal belongings.

Homes and Personal Assets

Once it’s time for long-term care, your loved one may consider selling any homes or properties they own, along with other personal assets. Home equity is a common tool used to pay for assisted living.

They can also consider selling cars and other valuable assets that they’ll no longer use in long-term care. If you have guardianship or power of attorney over your loved one, you may have to make these hard decisions on their behalf.

Estate sales can bring in some cash as well. If your family isn’t keeping your loved one’s home after they move, consider removing items you want to keep and selling the rest. Vintage and antique items that have held their value over the years can easily turn into cash that you can use to pay for your loved one’s monthly cost in assisted living.

Think realistically about the assets your family will want to maintain once your loved one is in assisted living. Unless high-ticket assets like homes and cars have sentimental value, chances are they’re more useful in liquid form.

What’s Included in the Price of Assisted Living?

In our communities, we offer a range of enriching amenities and comfortable living options for seniors who need daily care. Here’s what you’re paying for when you choose a high-quality assisted living community for your loved one.

Residential Space

Depending on your budget and what your chosen community offers, your loved one may get a private or semi-private room to enjoy as their primary living space.

Many assisted living residences offer one-bedroom units (both private and shared) that function like apartments. These often include a living room, kitchen and dining space, and a furnished bedroom.

More independent residents with lower care needs may choose single units. Those who need more frequent access to the community’s providers and caregivers can consider shared units and semi-private rooms.

Housekeeping Services

Your loved one doesn’t have to worry about keeping up with cleaning their residence. Assisted living communities offer regular housekeeping services to make things more manageable in their day-to-day life.

Medical and Personal Care

On-site medical care may include skilled nursing services and personal caregivers who help with your loved one’s medication management. This is important for seniors whose lives and health depend on taking the right medication at the right times each day.

They’ll get help with personal care tasks like dressing, bathing, grooming, feeding, and mobility as needed. Personal care services cut down on accidents like falls and ensure your loved one can safely function in a semi-independent environment.

Your loved one may also have access to a primary care provider to monitor their health and wellness over time. In memory care, healthcare services include cognitive assessments and treatments for Alzheimer’s and dementia symptoms.

Amenities and Social Activities

Amenities like restaurant-style dining and group outings keep your loved one’s life full of joy and stimulation.

As older adults age, tasks like meal planning can be time- and energy-consuming. Remember that amenities aren’t just luxuries; they enhance your loved one’s quality of life by offering extra support and a constant helping hand. By enjoying robust, healthy dining options and other amenities, they can become the best version of themselves after retirement.

Other amenities may include:

• Group fitness classes

• Gym access

• Crafting and hobby groups

• Book clubs

• Continuing education

• Cultural and religious celebrations

• Scheduled outings to fun, interesting places

• Holistic wellness programs

All of these activities allow your loved one to build and maintain a solid social network, which is key for healthy aging.

Scheduled Transportation

Getting to and from appointments won’t be a problem in assisted living. Your loved one likely won’t need a car to get to their important medical appointments. In a high-quality community, scheduled transportation will be covered under amenities and luxuries.

Legend Senior Living: All-Inclusive Assisted Living Costs

If you’re ready to move your loved one to a higher level of care and are worried about living expenses, let us help. At Legend Senior Living, the care costs are all-inclusive, so you’re getting a better deal for what you pay. Your loved one’s monthly fees will cover food, amenities, residential needs, and more.