It’s common knowledge that saving money for the future creates a more secure future, but it can be hard when we all struggle to make ends meet and feel the pinch of rising living expenses. We don’t want to wait too long to ask the important questions like, “How do you pay for assisted living communities?”, “How much do retirement communities cost?”, or “How much does a retired person need to live on?”
If you aren’t at least thinking about these things, you’d better start. We can’t always count on being able to stay in our home and remain self-reliant. An Assisted Living community like Regency Retirement Village of Tuscaloosa offers lots of perks and amenities that most seniors will love, but many residents do join us after some incident leads family members to worry about their safety and security alone. Many will move here only after a family caregiver can no longer offer the support they need.
According to Genworth, the median monthly cost of an Alabama Assisted Living community was $3,271 a month. Families can feel a bit of sticker shock when it comes to those kinds of numbers — especially if they’ve never researched it before.
This can be tough if there’s a lack of private funds saved over the years to provide for the costs of long-term care in retirement years. Lifespans are increasing, and the average person reaching the age of 65 today can expect to live to at least their mid-80s. Where will those two decades of rent come from if the senior can no longer work?
There are funding solutions in place to offer some support to those in need, including:
This program can be a simple and convenient way to get the senior into an apartment in our community sooner rather than later, extending a line of credit to pay for rent while their home is prepared for realtor showings and then sold.
Some assistance programs require cost-saving measures such as sharing a living space with another resident – just like taking on a roommate in your college dorm back in the day!
The U.S. Department of Veterans Affairs (VA) may provide long-term care for some veterans of wartime conflicts. If you served, it is worth checking your eligibility for veterans’ benefits by calling 1-877-222-8387 or visiting www.va.gov/health.
It is a mistake to assume that when we retire, Uncle Sam will take care of us. Federal programs WILL generally pay for some healthcare related expenses, but some programs are means-based, so they will not pay until a person’s own assets are exhausted. To learn more, visit https://www.nia.nih.gov/health/paying-care
Life Care: Convert a Life Insurance Policy to Finance Long-Term Care
If you have a life insurance policy, you may be able to convert it to pay for expenses while you are still alive. Applying to see if you’d qualify for this program is free and easy.
Gift Tax Exemption
Families paying for a parent to live at Regency Retirement Village should talk to their tax professional and consider pursuing the IRS gift tax exemption of up to $15,000 per individual per year.
Long-Term Care Insurance
Around age 55, insurance companies can offer a policy that allows you to pay today on the long-term care you may need a decade or two later.
Invest Savings in Something that Will Generate Income
Whether it is a conservative financial stock with a promising future or a rental property that can be generating monthly rent from tenants, investing savings in something that will produce more money can be a smart move.
Working While Retired
While not ideal, having a part-time job can help generate some cash, plus some people actually enjoy the activity as long as they are physically and mentally able to do the job.
Learn more about Assisted Living Financial Assistance at https://regencytuscaloosa.com/tuscaloosa-senior-care-resources/tuscaloosa-assisted-living-financial-assistance/
Consult the Experts Before Acting
We recommend speaking with an elder law attorney, and consultation with a tax professional is strongly advised before making financial decisions. To learn more about Regency, call us at (205) 752-5500.