According to a National Center for Assisted Living report, the national median cost for assisted living in the United States is about $4,000 per month or $48,000 annually. With the cost of living rising every year, saving for the future- retirement and beyond, can seem overwhelming and sometimes impossible.
But with careful planning and some research, living in an assisted living community is attainable. Below are a few tips and strategies that can help you prepare for the future.
1. Prepare, prepare, prepare!
It’s never too early (or late) to begin planning for the years ahead. A few things you may want to consider are long term care insurance, permanent life insurance and setting up a Roth IRA. Talk to your financial advisor about your options!
2. Determine if you are eligible for Veteran Benefits
The Aid & Attendance (A&A) Pension provides monetary assistance to help veterans and surviving spouses in covering the cost of long-term care. If you or a loved one is a veteran, you can learn more about VA healthcare benefits here.
3. Consider your location
As with other types of housing expenses, the cost of assisted living can vary by state. Take a look at the breakdown of average assisted living community costs by state to see if another state makes sense for your budget.
4. Reverse Mortgage
A reverse mortgage is a special type of home loan for homeowners 62 and older who have considerable home equity which allows them to borrow cash against the value of their home. Speak with a reputable bank to learn about the risks and benefits of setting up a reverse mortgage.
5. Maximize Social Security
While you are eligible for Social Security benefits as early as age 62, most people benefit more by waiting until their full retirement age to begin collecting benefits. In fact, each year you delay could add up to 8% to your benefit until age 70, when benefits max out. Be sure to talk to your financial advisor on ways to sure maximum social security benefits you’re entitled to.
Using some of the tips above, we hope you have some more information to begin building a solid plan to get the best care possible for your loved one. Be sure to utilize all the resources available to you!