How Much Does Senior Living Cost?

Cost of Independent Senior Living 

The cost of senior independent living is around $2,800 a month, but can be less or more depending on amenities and location. While that price tag may seem high at first glance, when you consider that rent covers meals, utilities, maintenance, housekeeping, activities, and transportation, independent living can be a very affordable option.  

Independent living communities are for seniors aged 55 and over who don’t require assistance with bathing, dressing, toileting, and medication. They don’t provide medical care or assistance with personal care needs. However, you always have the option to pay home health aides an hourly rate to help with these tasks if needed.

Cost of Assisted Living

The cost of senior living in an assisted living facility is higher than independent living. Assisted living facilities usually run around $4,051 a month according to a 2019 Genworth survey. Like other retirement communities, the cost of assisted living varies by location and amenities. 

The reason assisted living facilities are more expensive than independent senior living is because they provide personal care services such as helping with bathing, administering medication, getting you to and from the toilet, and dressing. Assisted living communities have staff onsite around the clock for extra security and assistance.

Some assisted living facilities include a memory care unit. Memory care provides specialized assistance for people with significant dementia or Alzheimer’s disease. Memory care units also have more security to prevent residents from wandering off. Memory care is more expensive than assisted living. If you need to transition into memory care from assisted living, your monthly rent will likely go up at least $1000. 

Cost of Nursing Homes

In 2019, the average cost of nursing homes was $7,513 monthly for a shared room and $8,517 for a private room. 

Nursing homes provide the highest level of medical care of senior living communities. People who live in nursing homes typically struggle with conditions such as  blindness, severe mobility problems, amputations, Parkinson’s disease, dementia, heart conditions, mental issues, significant aftereffects of a stroke, and diabetes complications. 

Cost of Continuing Care Retirement Communities (CCRC)

The most expensive senior living communities are CCRCs. The entrance fee for CCRCs can range from $100,000 to more than $1 million according to the National Investment Center for Seniors Housing and Care. You’ll also pay monthly fees that can range from $2,000 to $7,000 depending on location, services, and amenities.

CCRCs are costly because they provide three or four levels of care that typically include independent living, assisted living, memory care, and skilled nursing. You can enter the retirement community at the level of care you currently need, and transition to higher levels of care if needed.

How To Pay for Senior Living

Most people pool funds from a number of resources to cover the cost of senior living. These may include personal savings, social security, real estate profits, and help from loved ones. Medicaid and long-term care insurance may help pay for services in senior living communities that are more medical in nature like nursing homes.

Is Senior Living Worth It?

Depending on your situation, you may find that some senior living options like independent living can actually save you money. With the climbing costs of home maintenance, property taxes, transportation, and utilities, bundled bills have the potential to put more money in your pocket.

Beyond the financial component of retirement communities, you can gain savings in what Todd Dickerson, field sales manager for Holiday Retirement refers to as emotional and physical accounts.

“One of the biggest things I see in ‘peace of mind savings’ is the social aspect of living in a Holiday Retirement community,” says Dickerson. “If someone’s living at home by themselves, they’re not getting social interaction, and Holiday is all about social interaction, which can increase longevity of life.”