As we age, we start hitting unique challenges. While we can do everything to take good care of our bodies, there comes a time when we just can’t be as independent as before.
We may have loved ones who can take care of us, but sometimes, that’s not always feasible. So, as part of financial planning for seniors, it’s wise to look ahead and figure out the cost of care for retirement communities long before we need one.
Don’t know where to start? Then read on. This post will discuss the things you should expect so you have less of a financial surprise in the future.
Types of Senior Living and Care Options
Retirement community pricing isn’t uniform across the board. A major factor in your costs will be based on which type of senior living or care you opt for. Here are your options.
Independent Living
Independent living is best for seniors who are active and don’t need daily assistance with things like dressing, toileting, medication management, etc. Here, you’ll get a private apartment or home, community amenities, and social activities.
The cost can range from $1,500 to $4,000 a month, depending on the location and amenities.
Personal Care
Personal care is for seniors who need assistance with daily activities. You’ll get a dedicated staff member who helps them with tasks like bathing and grooming, as well as access to skilled nursing care. You’ll live in a private apartment as well, and there are also meal services, community amenities, and social activities available.
Expect to pay between $3,500 to $5,500 a month for personal care if you live in Phoenixville, PA. This may be higher or lower in other parts of the country, depending on a number of factors.
Memory Care
Memory care is ideal for seniors who have cognitive impairments (such as dementia or Alzheimer’s) and need specialized care. You’ll be in a secure environment with structured routines and specialized staff.
Because there’s more personalized care involved, memory care is typically more expensive than the other two choices. Expect a ballpark range of $5,000 to $9,000 per month.
Medical Expenses for Seniors
When you get older, the base senior care costs aren’t the only thing you’ll be paying for. There are also medical expenses that you must factor in. We’ll go over the main ones below.
Health Insurance Options
Older adults in America have several options for health insurance, and choosing the right one is essential, as medical costs only increase as we age.
The common health insurance choices are:
- Medicare (hospital stays, outpatient care, prescription drugs)
- Medigap (supplemental; helps covers Medicare)
- Medicare Advantage (alternative to Medicare)
Common Medical Costs
Every senior will be different, so not every medical cost will be relevant to you. And even if they are, you may be paying a drastically different price than other seniors based on factors like where you’re located and what insurance plan you have.
With that said, here are some examples of common medical costs:
- Prescription medications ($1,200-$5,000)
- Routine doctor visits ($500-$2,000)
- Specialist visits ($1,000-$5,000)
- Hospital stays ($10,000-$30,000 per visit)
- Medical equipment ($500-$5,000)
- Physical therapy ($50-$350 per session)
Don’t forget about out-of-pocket costs either. For example, there are copays, deductibles, and non-covered services that can add up.
Estimating the Cost of Care
Now that you understand a little more about the types of senior living and care, as well as the general medical expenses for seniors, you’ll have a better picture regarding paying for long-term care. Here are the steps you should follow to make an educated estimate.
Assess the Level of Care Needed
First of all, how much care do you need? Are you able to perform daily tasks independently or do you need medical supervision? Do you have cognitive issues as well?
The answers to these questions will determine which kind of senior living and care you should go for.
Consider the Location
As we’ve said before, your total costs can vary widely by state and city. For example, personal care in Pennsylvania might cost $5,500 a month, while it costs $3,500 a month in Missouri.
If you’re in Phoenixville, PA, the cost of living is 3% higher than the national average. This means that senior living and care will cost a little more in this city than elsewhere.
Calculate Potential Personal Care Expenses
Take all the things we discussed in the previous sections and add up all the ones that apply to you. Here’s an example:
- Base monthly cost for personal care: $4,500
- Medications: $300
- Medical visits: $200
This comes to a total of $5,000 for monthly costs.
Determine Payment Sources
It’s very likely that you’ve accumulated a nice amount of retirement savings so you can rest easy during your golden years. But you shouldn’t have to use all that money to pay for senior living and care.
Think of other ways you can pay, such as:
- Social Security
- Pension
- Medicare
- Long-term care insurance
Tips for Managing Senior Care Costs
It’s best if you start planning as early as you can. If you start saving and exploring insurance options before care’s needed, then you won’t be caught off-guard.
Don’t forget about government assistance either. For instance, VA benefits can help with long-term care.
In addition, some medical expenses and senior living costs may be tax-deductible. It may be worth consulting with a tax professional to find out more.
If needed, consider downsizing. Selling your current home can free up assets for future care costs. Plus, it can be easier to look after a smaller living space.
Understand Your Future Senior Care Costs
Figuring out the cost of care and medical expenses for seniors can be complex. But with proper planning, you can make smarter, more informed decisions.
You should assess your care needs, research costs, and explore various funding options as early as possible. That way, you can ensure the best quality of life when you do need senior living and care services, and you won’t have anxiety over how to pay for the care you deserve.
Get in touch with us today if you want to hear more about senior living in Phoenixville, PA. We at Spring Mill Senior Living have six distinctive lifestyle programs designed to enrich our residents’ lives.
