Are you or a loved one considering senior housing options but feeling uncertain about the affordability? It's a common concern among seniors and their families.
As we navigate this important decision, it's crucial to recognize the signs that indicate senior housing may not be financially feasible.
Six Key Indicators You Can’t Afford A Senior Facility
Limited Retirement Savings: One of the primary considerations when evaluating senior housing affordability is your retirement savings. If you find that your savings are insufficient to cover the costs associated with senior living communities or assisted living facilities, it's a clear sign that you may need to reassess your options. First, find out what it costs to live in the senior facility of your choice. See my Ultimate Seniors Guide for the questions you need to ask.
Take a close look at your retirement accounts, pension, and other sources of income to determine if they can adequately support the expenses of senior housing. And don’t forget, they will go up as you age. But not necessarily at the same rate!
Fixed Income Constraints: Many seniors rely on fixed incomes, such as Social Security benefits or pensions, to cover their living expenses. However, fixed incomes can pose challenges when it comes to affording senior housing, especially if the costs exceed your monthly budget. What is it you will go without? As we age we will need more services, not less.
If you're struggling to meet your current financial obligations on a fixed income, it's essential to carefully evaluate whether you can afford the additional expenses associated with senior housing, including rent, utilities, and healthcare services.
High Healthcare Costs: As we age, healthcare expenses often increase, adding another layer of financial strain. If you or your loved one require extensive medical care or assistance with daily activities, such as medication management or mobility support, these costs can quickly accumulate. Ask yourself if you have good insurance. Medicare Advantage is not the same as Medicare Original. And by now, yo must know that Medicare does not pay for everything and more or more healthcare facilities are adding on excess costs.
Before committing to senior housing, consider the potential healthcare expenses and whether your budget can accommodate them. Many seniors move into a lovely senior facility only to be kicked out six months later because unexpected medical bills come along.
Limited Access to Financial Assistance: While there are various financial assistance programs available for seniors, not everyone qualifies for these resources. If you're relying solely on personal savings and income to cover senior housing costs, without access to government subsidies or assistance from family members, it may indicate financial challenges ahead.
There are amazing programs to assist you but it depends on your state. You will need to talk with a Board-certified Elder Law Attorney who lives and breathes this information every day. The reason this is so important is because laws are constantly changing in your state.
As one Board-certified attorney told me, “Suzanne, I see all my clients every 4 years because it depends who got elected to office. Laws change. "
Debt Obligations: Mounting debt can significantly impact your ability to afford senior housing. Whether it's credit card debt, mortgage payments, or outstanding medical bills, carrying substantial debt can strain your finances and make it difficult to cover the expenses associated with senior living.
Are you in debt because of a family member? I've seen many seniors who are still paying on their child's college education.
Limited Savings for Emergencies: Planning for unexpected expenses is essential, especially in retirement. If you don't have adequate savings set aside for emergencies, such as home repairs, medical emergencies, or unexpected financial setbacks, it can jeopardize your ability to afford senior housing in the long run.
This is a biggie. Many of the seniors we work with admit they give too much to their adult children or grandchildren. There are too many fundraisers at the kid’s schools, sports are ridiculously expensive, and they can’t say ‘No’.
On top of this, if you buy into a senior facility, they tend to have “Assessment fees” based on their updates or hurricanes, floods, and other weather-related disasters which call or an assessment in the thousands. Be ready for these.
Protect what you have, getting what you deserve
In conclusion, see out where you want to live, and then find a Board-certified Elder Law Attorney to help you get the program(s) that will protect your money and find you some more.
For moreinormation on what you need as a super aggingg senior, see my Free Super-Ager's Starter Guide. Chapter 6 is all about Senior Finances.
