Today’s senior living is designed to meet the growing expectations of future residents. Individuals are looking for quality care and support to reach their health and wellness goals – and opportunities that contribute to living their best life.
Today’s seniors have changed as well. Communities focus on supporting the personalities and preferences of those who are:
- Living longer
- May be postponing retirement
- Aren’t interested in stereotypes or assumptions about aging
- Looking for a different experience
- Searching for tailored and customized features
- Prioritizing those communities who support them to achieve a high quality of life
Many people only consider a move as a necessity when needs change. But spending time to understand the advantages of senior living can help with planning your future. A great community can expand your horizons, introduce you to a new circle of friends, and even give you the opportunity to check a few things off your bucket list.
At Tenfold, we believe in creating communities that let you maintain the lifestyle you love – even as your needs change. You’ll be relieved of the burden of maintaining your home while gaining the security of help when you find you need it.
Options for funding senior living
If this opportunity appeals to you, we want to make sure you’ve got useful financial planning information that can make the move viable. Personal funds are typically used for Independent living community costs. Assisted living and memory care are also usually paid out-of-pocket but there may be additional financial sources available. We encourage you to speak to one of our team members at Prairie City Landing regarding specific costs.
For your general information, the following assets and financial resources may be available to fund your new senior living lifestyle:
Accumulated savings from Certificates of Deposit, Checking, Savings and Money Market accounts may be available to pay for senior living. It’s also recommended to ensure all past accounts are accounted for and have been closed. Many families have discovered long-forgotten bank accounts that still held a balance.
Not all older adults wait until they’re retired to take advantage of the maintenance-free and engaging lifestyle of senior living. If still employed, this income can contribute to funding costs. Social Security payments provide another financial resource.
Employer-sponsored retirement plans, such as pensions, 401(k)s or SEPs may be available. Individual Retirement Accounts (IRAs) or annuities might be other sources. However, early withdrawal penalties may be applied if the individual accessing these funds is not yet age 59 ½.
Stocks, bonds and mutual funds are examples of investments that can be converted to cash to pay toward senior living expenses. You may also have investments in real estate or personal property collections, such as jewelry or artwork.
Renting or selling your home
Renting out the home may provide an owner additional funds, however, many older adults sell their home when they choose to move into a community as this often represents their largest asset.
If married and one spouse remains in the home, refinancing and receiving cash back or taking out a home equity loan or line of credit could provide funds. While we don’t generally recommend it, a reverse mortgage is another possible solution to create a lump sum payment as long as the property remains owner-occupied. If you’re interested in considering a reverse mortgage, we recommend you review this guide containing information endorsed by the US Department of Housing and Urban Development.
The Veterans Aid and Attendance program for veterans and their spouses who meet specific restrictions may provide financial assistance for certain healthcare services. To qualify, military service and medical or personal care requirements must be met.
Veterans may also qualify for funds to be used in independent living communities through the Veterans’ Directed Care program. Our marketing counselors are trained to help you determine whether this benefit may be available to you, and if so, can connect you to the appropriate resources.
Bridge or gap loans
Families may find they need a loan to bridge the gap between the time when senior living is needed and when the money is available. This often occurs when waiting for a home to be sold or other investments are being transferred. Funds are typically available quickly and the loan is repaid once the asset sells.
Medicare is the primary insurance for most individuals over the age of 65 but if you or a loved one needs health care services before that age, there may be benefits through your private insurance which can free up other funds.
An often overlooked funding source, life insurance policies may be converted to cover care at a residential community or be cashed out for a lump sum payment. Another option includes taking a loan out against the policy. We strongly recommend you consult with your financial planner before taking any action related to your life insurance policies, to be sure it’s the right decision for you and your family.
Long term care insurance
Older adults who have purchased long-term care insurance can access these benefits to contribute to senior living expenses. Policies can vary so you’ll want to confirm the specific benefits, including when the insured qualifies for coverage – such as if help is needed with the activities of daily living.
Since Prairie City Landing is a fully licensed community, we may be able to help you access benefits that an unlicensed building could not. We’re happy to help you understand the options available under your policy.
Financing senior living can be somewhat of a complicated topic. Prior to discussing with your financial advisor which possibilities might be the best choice for your family, we invite you to connect with us so that we can help you better understand your options. We are also glad to share the names of local, independent financial advisors if you’d like a referral. Please contact us at (916) 458-0303 if we can answer any of your questions, provide further information, or if you would like to schedule a personalized tour.