According to the latest available data, the average retiree in the US receives just over $55,000 annually. That can be a reasonable amount for a retiree to live on, but it can complicate paying for advanced levels of care.
It's important to balance the level of care you need with your desired comfort and what you can afford. You can choose independent living and personally cover the extras or pay the total cost of assisted living and get all the services at a bundled price. Check out this brief analysis to learn about independent living vs assisted living cost factors.
The essence of this blog post is that independent living costs less than assisted living. Understanding why starts by understanding the difference between these types of living arrangements.
Independent living communities provide a place to retire in comfort. Management takes care of cleaning and maintenance, and the residents may socialize in shared amenities, but they also maintain a high level of day-to-day independence. Independent living residents still take care of their own daily chores (laundry, for example) and do not get 24-hour-a-day monitoring or assistance.
Assisted living includes help with activities of daily living (ADLs). This includes housekeeping, meal preparation, medication help, and anything else the particular resident may need. Assisted living may also include a degree of round-the-clock monitoring for medical reasons.
The extra care means that assisted living costs tend to be higher than independent living. However, if someone in independent living pays a third party for additional care, the situation may swing the other way.
The total cost of independent living or assisted living is made up of several services and fees. Some senior living communities can give residents an independent or assisted living package for a lower overall price by bundling these together (especially if there are many residents), like buying in bulk. If you choose independent living but then pay for a housekeeper, a nurse, and a gardener, then assisted living may have worked out to be more affordable.
The total price of independent living may cost a person or family anything from a few hundred dollars a month (with the help of several subsidies and discounts) to several thousand. The average monthly price for assisted living in the US is $5,350.
A home's location can have a significant impact on the price. Firstly, some things may be more affordable in certain states due to economies and regulations. However, moving to a "cheaper" state can make traveling more expensive for the resident or family and friends.
Secondly, more remote communities may offer a transport service. This extra fee increases the final cost.
Not all independent living communities charge their residents a base fee. It's much more common in assisted living communities, but what it covers may vary between communities.
The base fee may cover accommodation, standard care, and meals in some assisted living arrangements. In others, it may only cover the care or the rent. Be sure to assess what the base fee covers when looking for an assisted living community.
When it comes to the full cost of senior housing, the housing units themselves cost about the same in either case. However, many senior living communities provide larger accommodations for assisted living residents. The extra room makes it easier for the residents to live with nurses, orderlies, and even medical equipment in their space.
The community's staff handles maintenance for the residents in both assisted and independent living. This relieves retirees of the pressure to clean gutters and pull weeds (as an example).
Maintenance will cost more if the building is older or larger. Sprawling grounds can also cause the maintenance fee to increase because of the gardening requirement.
Each retirement community has its own way of dealing with utilities. Some independent living may allow residents to rent or buy their accommodations and then require that they pay their utilities. Others may include utilities as part of the package deal.
With assisted living communities, it's far more likely that utilities will be included in the price.
Amenities are extra venues and services that are there purely for the residents' pleasure and enjoyment. Most senior living communities have at least a cafeteria and one additional hall or common room. Many places offer much more (games rooms, reading rooms, walking gardens, swimming pools, gyms, etc.).
Amenities can push the community's price up in two ways. First, more amenities increase the public's interest in that community. The higher demand pushes the price up.
Secondly, more amenities also mean that the residents have to pay more for maintenance.
The last significant determinant of assisted living costs is the cost of additional care. Retirees with minor mobility difficulties may only need help with cooking and cleaning. On the other hand, retirees with more severe conditions may need help moving around, bathing, exercising, and near-constant monitoring.
The severity of an individual resident's needs can quickly drive costs up. That's why it's also a good idea to look for a community that specializes in providing a certain service if you or your loved one needs it (memory care, for example). An organization with a specialized focus can often provide the required service more efficiently and affordably.
There are many variables that can affect a senior citizen's retirement bill. Whether one retires in an independent living community or goes for assisted living can make a massive difference.
Independent living can be minimalistic or lavish, depending on the community. Assisted living is more standardized, but because it involves extra costs of care, it tends to be more expensive. Cost factors that can influence either arrangments price also include location, rent, maintenance, utilities, and fees for extra care.
We can help you navigate all the independent living vs assisted living cost factors at Sierra Hills. Contact us today for the best information on retirement expenses and how to cover them.