We love our parents. They are the ones who took care of us when we were young and taught us how to live. And in their senior years, we often return the favor. Sadly, taking care of your senior parents at home and on your own is not always an option.
Fortunately, there are many alternatives meant to help
individuals in such a predicament. A simple search online will bring up
thousands of retirement homes and companies like A Better Way in Home Care offering in-home
care and assisted living services.
However, these alternatives sometimes prove to be too
expensive for most.
Not everyone realizes how high the assisted living costs are
until they are forced to look into it. These costs can be so high that they can
seriously impact your quality of life and drain your family budget.
According to Genworth
Financial’s Cost of Care Survey for 2016, the median cost for homemaker and
home health aide services is $20 per hour, while adult day health care costs
around $68 per hour. For seniors living in a nursing home, you’ll have to pay
around $225 per hour for a semi-private room or $253 per hour for a private
room. Finally, for seniors living in an Assisted Living Facility, you will have to spend a stunning $3,628 per month.
Although these costs are pretty high for some families, fortunately, there are several strategies you
can use to fit this expense into your budget.
Plan in Advance
The biggest mistake you could make in this situation is not
planning ahead. If you discuss this topic with your senior loved ones early,
you will have the time to prepare financially and they will be able to prepare
mentally. If you look into retirement home options early you will also get a
head start on the often long waiting lists.
Consider Different Locations
The costs of senior care vary in different states and areas.
If you are trying to squeeze your senior loved one’s retirement plan into your
budget, you might want to look into how much senior care costs in your
neighboring states.
For example, while a semi-private room in New Jersey costs
around $9,885 on a monthly level, the same arrangement costs $5,931 in Alabama.
Research Different Benefits
Most commonly, Americans fund their retirement through
social security benefits. However, other benefits could help
finance your senior loved one’s home care needs. If they have served in the
armed forces, they might be eligible for Veteran’s Benefits. This could, in
turn, help fund their senior care.
However, there are a few criteria your senior loved ones
must meet. They must have had at least 90 days of active duty with at least one
day during wartime. Furthermore, the senior has to have been discharged from
the service honorably. They have to be permanently or totally disabled or over
65 years old. Finally, their countable family income must be lower than a
standard governed by the law.
Look into Financing
Several financing options could help you get
your senior loved ones the care they deserve. One of the most popular ones is a
bridge loan. These loans are backed by a collateral, real estate, for example,
that provides a constant cash-flow source. This way, if your senior loved one
has a home but has to move to a retirement home, a bridge loan could help with
some expenses.
Similarly, long-term care insurance and life insurance can
be used to finance their care. A life insurance policy can be borrowed against
or sold to a life settlement company. However, there are some downsides to
selling a life insurance policy as well, so make sure to resort to that only if
necessary.
Other Funding Sources
The most common way families pay for senior care is by selling
their senior loved ones’ homes to finance professional care. This is a fairly
reasonable trade of one housing cost for the other which won’t affect your
budget.
However, if there’s no real estate to sell, it might be wise
to turn to your siblings and ask for their contribution in financing senior
care. Finally, if all else fails you might want to look into other, more
affordable senior housing choices like renting in senior communities.
Getting to know all your options can help you plan your
budget better. Research every one of these options and you will find a way to
help your loved one without seriously compromising your family budget. Talk to
a financial expert if you want to find all the retirement financing options
that could help your senior parents and your family.
In conclusion, navigating the financial challenges associated with senior care can be daunting, but with careful planning and exploration of available options, families can find solutions to fit their budgetary constraints. From planning in advance and considering different locations with varying costs to researching available benefits and exploring financing options such as bridge loans or long-term care insurance, there are numerous strategies to help cover the expenses of senior care.
Additionally, leveraging assets like real estate or seeking contributions from siblings can provide additional financial support. Ultimately, understanding and exploring all available avenues can empower families to make informed decisions that prioritize the well-being of their senior loved ones while managing their family budget effectively.
Seeking guidance from financial experts can also provide valuable insights into retirement financing options and help families navigate the complexities of funding senior care. By taking proactive steps and exploring all available resources, families can ensure that their senior loved ones receive the care they need without undue financial strain.
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