Examining Assisted Living Costs

This article explains how examining the various components of assisted living costs can allow you to take advantage of what you previously thought was not possible. It is often thought that the fees required for assisted living residences are not affordable to many people. However, if they tried to analyze the different parts of these costs, they may be amazed to find that it might fit their budgets after all. Perhaps this misconception is due to the high costs of nursing home care, which was previously the only option available for retirees. Assisted living is a relatively new concept and is also known by various terms such as adult congregate living care, residential care, sheltered housing, adult foster care, enhanced care, adult living facilities, board and care, personal care, retirement residences, adult homes, community based retirement facilities, supported care, and domiciliary care. It should be pointed out that a substantial part of assisted living costs are normal living costs that you would incur if you stayed at home.

Let us check out those parts of assisted living costs that are standard components of living expenses. These include laundry service, housekeeping services, entertainment costs, social costs, transportation costs, medical expenses, garbage disposal services, meals, snacks, utility costs, home maintenance costs, emergency call system, and mortgage or monthly rent. And in contrast to independent living arrangements, there are no property taxes, insurance costs, or maintenance fees for condominiums. Therefore, the actual costs of assisted living programs are the nominal costs minus the above costs that you would have to spend whether you transfer to a retirement living community or not.

Assisted living arrangements are usually preferred by older people who need 24-hour assistance in key activities, such as meal preparation, cooking, toileting, bathing and dressing, but do not require the intensive care that is provided in nursing homes. An important advantage for residents of these communities is that it is easier for them to meet other people and socialize, thus eliminating the possibility that they would feel bored. This is quite possible for those who are alone in their homes because it is more difficult to leave the home to visit friends.

As discussed above, it is important to deduct from the assisted living costs the usual living expenses that would be eliminated if you transferred to a retirement community. If the resulting value is still substantial, you will need to convert some of your assets into cash flow. Of course, you can always ask your heirs to handle the costs or you can make use of a reverse mortgage in which you are able to convert a portion of your equity in the home into cash. There could be other assets to convert into cash like stocks and jewelry. As for those who are still planning for their retirement, it would be helpful to establish businesses that would provide the required cash flow when the time comes for you to retire. You may also purchase long term care insurance if retirement is still several years away.