How to Budget for Senior Care Costs
Planning for your retirement might feel a bit like the ultimate conundrum. You’ve got your head in the clouds, dreaming up all the things you’d like to accomplish as a retiree, while your feet are planted firmly on the ground, trying to figure out how to finance all those grand plans.
While envisioning the lifestyle you want gives you plenty to look forward to as you approach retirement, another important aspect of making plans for your future is budgeting for senior care.
Even if you’re in terrific health now, the future holds some uncertainty about what kind and how much care you may eventually need. One thing you can count on is healthcare costs continuing to rise, which may make planning how to put your retirement savings to good use more important than ever.
Planning ahead and doing your research can give you an idea of expenses you may encounter and help ensure you’re armed with the information you need when budgeting for senior care.
Understand your living options
Part of budgeting for senior care is taking a close look at the living options available for a wide range of possible circumstances. If you eventually need extra help completing everyday tasks or develop a health condition that requires ongoing management, you’ll need a higher level of care, which generally comes at a higher cost.
While there are differences from one senior living community to the next, senior living communities typically offer one or more living options with increasing levels of support or specialized services. As a young, healthy retiree, you may be best suited for independent living, which often includes perks like maintenance-free living and help with household chores, as well as access to community amenities and programs. Additional living options may include assisted living, skilled nursing, rehabilitation, and memory care.
Use tools to predict future costs
For 150 years, Genworth Financial has been supporting the financial needs of older adults by supplying information about caregiving options and the cost of long-term care. Genworth’s annual Cost of Care survey collects data nationwide to help seniors and their families predict future long-term care costs in their area based on criteria like the frequency of care, year you anticipate needing care, type of care (in-home, community care, assisted living, or nursing home). You can also explore trends in long-term care and see how these changes may affect you or your loved one.
Consider the advantages of a Life Plan Community
From a financial standpoint, there are numerous benefits to choosing a Life Plan Community. Ultimately, you’re protecting your finances against unexpected costs. A convenient monthly service fee covers all of your living expenses, including utilities and property taxes, as well as services and amenities like housekeeping, dining options, social events, fitness programming, and other wellness activities. This means you can predict monthly costs, which makes budgeting for senior care significantly simpler.
What’s more, depending on your contract terms, you may be able to lock in predictable healthcare costs, too. Also worth noting: Your monthly fee and entrance fee may be eligible for tax benefits since they may qualify as prepaid medical expenses.
Explore communities that interest you
If you know of communities you’d like to consider making your retirement home, be sure to check their websites for cost information. Each of our eight Springpoint Life Plan Communities has a pricing page to help you understand the various contact options, fees, and other important financial considerations:
The Atrium at Navesink Harbor in Red Bank, New Jersey
- Crestwood Manor in Whiting, New Jersey
- Meadow Lakes in East Windsor, New Jersey
- Monroe Village in Monroe Township, New Jersey
- The Moorings at Lewes in Lewes, Delaware
- The Oaks at Denville in Denville, New Jersey
- Stonebridge at Montgomery in Skillman, New Jersey
- Winchester Gardens in Maplewood, New Jersey
Download our free guide
We know financing your retirement is an important factor in planning your golden years. Our free guide helps you get started budgeting for senior care by comparing costs between living at home and moving to a Life Plan Community, while providing helpful explanations about entrance fees, Lifecare benefits, and potential tax advantages. Contact us to learn more or download your own free copy of our Financing Your Retirement guide.
