Senior couple looking at financial documents for Independent Living

How to Financially Prepare for Moving to a Senior Living Community

For adults 55 and over who are considering a move to a senior living community – or for adult children who must decide whether it’s time to have Mom, Dad or a loved one reside at an Independent Living, Assisted Living or Memory Care community – it’s important to think about how this change may affect finances. Determining how you will pay for these services and accommodations can be difficult. Capital Senior Living offers a variety of resources and solutions you can look into.

Although often a significant symbol of independence, handling your finances doesn’t have to be a solo task. Of course, the best way to start saving for your senior years is in your younger years, but most adults right out of college don’t have that luxury with worries of paying off student loans or saving money to help their kids go to a university in the future. So when should you start thinking about senior living? Whether you’re 40, 50 or 60, these tips can help guide you to an informed financial decision.

  • Visit a financial adviser. A financial adviser can help get your house in order and set up a timeline from now until you make or plan on making a move into a senior living community. Advisers can also help you find government programs that can best aid the move. That’s why it’s is important to make sure you select the right adviser.
  • Commit to an annual review. At the end of every year, go over investments and sources of income. Having a master list year over year helps you understand what to expect down the road and how well your finances are equipped for sudden or not-so-sudden lifestyle changes.
  • Attend financial seminars. Free seminars are always available so you can stay up to date with current financial practices and planning methods. Many libraries across the country host a variety of financial discussions and events that are focused on seniors with need-to-know information about money. AARP also offers tax assistance and helpful documents for creating healthy tax habits.
  • Take advantage of tax breaks. There are a variety of tax breaks for seniors to file for. Although you’ve being doing taxes for years, retirees may find that what they file for changes due to new sources of income.

Even with these helpful finance tips, you’ll want to take advantage of as many benefits as you can before moving to a senior living community. The good news is there are many ways to make paying for your transition from your house to a community easier. Several government and non-government funded programs are available as well as financial services for a senior or adult child to utilize.

  • The Veterans Aid & Attendance Pension. The VA&A provides reduced costs of care for veterans and their spouses.
  • Loan programs. Financial loan programs such as ElderLife offer loans that can help supplement or finance your monthly rent at a senior living community.
  • Converting life insurance policies. Life insurances polices can be converted into immediate life care benefit plans to pay for the cost of care. It is a simple process, and places such as LifeCare Funding will help you pay for care.
  • BenefitsCheckUp. A free service of the National Council of Aging, BenefitsCheckUp® provides a list of benefits you may qualify for. The service scans over 2,500 federal, state and private programs that fit your criteria and can help maintain economic security as your life changes.

Making the choice to pay for professional on-site care for a loved one can be an awkward topic of conversation. However, taking advantage of benefits, critically examining your finances and taking steps to stay informed can make the process be as painless as possible.

Don’t let the financial challenges of transitioning into senior living be a surprise. Plan ahead and prepare yourself for this exciting new chapter in your life.

Sources: AgingCare and Investopedia

This website contains information, facts, opinions and recommendations of various individuals and organizations regarding senior care, health, nutrition and exercise. Capital Senior Living and its affiliates, agents and licensors cannot, and do not, guarantee the accuracy, completeness, timeliness, merchantability or fitness for a particular purpose of, or otherwise endorse, any opinions or recommendations, nor does Capital Senior Living constitute the giving of medical, health or fitness advice. Users of the website must consult their physicians regarding the applicability of any opinions or recommendations with respect to their conditions.