When working with families exploring senior living, the most common question we help answer is “What is the cost?”
To help the executive director or sales professional you are working with, you, or your family representative, need to be prepared to discuss how you have planned for this time in your life and what you are comfortable spending toward housing and, if applicable, services. Understanding that rent may have inclusions such as utilities, technology, transportation, meals, social, wellness and educational experiences, your rent is paying more than just your apartment.
Each person’s financial picture is unique, but retirement is most often paid through a mix of your private funds (savings, pensions, social security, sale of a home, etc.) and private investment (401K, IRAs, etc.). Keep in mind your whole financial picture when determining your apartment choice, desired lifestyles and service needs.
Renters and homeowners often abide by the rule that no more than 30% of income should be used toward housing. This rule does not apply in market-rate senior living because of the staff support, services and amenities that are offered. As additional services, such as personal care, meals, housekeeping, etc. are needed, or requested, there is incremental cost as those services are bundled into your monthly rate.
In many Capri Communities, we are licensed by the State of Wisconsin to provide assisted living and/or memory care services. The addition of care services will elevate the price point because now we are bringing in care staff to assist with scheduled and unscheduled care services, additional meals, housekeeping, laundry and specialized programming. Like many healthcare providers in the region, Capri requires a minimum amount of private paying funding within the licensed areas of our communities before conversion to Wisconsin Medicaid funding programs known under an umbrella program called Family Care. The private pay requirement varies per location and can range from one to three years.
Here are some tips to help navigate understanding and planning the costs of senior living:
- Understand your entire financial portfolio. If you do not have a financial professional to assist you with questions, the State of Wisconsin offers free financial counseling through the Aging and Disability Resource Center (ADRC), each county has an office.
- Shop your options, and know what communities fit your lifestyle and needs. Ask about their private pay requirements for assisted living or memory care services.
- Explore programs that may help pay for care services. There are specific Veteran benefit programs, long-term care insurance policies and other funding options that you may be eligible. Capri’s trusted financial concierge partner is ElderLife Financial. Advisors of ElderLife Financial will help customize a solution based on your needs.
- Consider an earlier move into an assisted living environment. When you need lighter care, it can extend your retirement savings longer because you are living a healthier lifestyle. Settling into an environment with supportive services and socializing with your peers reduces your risk for falls, depression, and anxiety due to isolation. Waiting until a crisis often comes at a higher price and loss of freedom to make your own decision about where you want to live. The time at the lower end of the care spectrum counts towards your private pay commitment.
Never be embarrassed or uncomfortable asking questions about costs. At Capri, we want you, or your loved one, to be confident and upfront with your financial situation so that we can assist you with making the right choice whether that is with Capri or another location that is a better financial option. With planning and preparation, understanding your financial well-being will assist you in finding the perfect fit community that meets your budget.
