Assisted Living Costs: How Much Can You Afford?

Assisted Living communities in a rural area may be less expensive than in a large metropolitan region, and a private living space with a bathroom will typically cost more than a shared room. Additionally, a senior’s needed care level will affect the cost, as well as the amount of services and amenities available to residents.

Other fees may be added monthly, such as pet or usage fees for the fitness center or other services.  Some Assisted Living communities offer these free, so it is important to ask questions. Make a list of services and amenities from most important to least to help narrow down community choices. Carefully review contracts and discuss any concerns with a community representative.  

Private pay is a common way to cover the cost of Assisted Living, which means paying out of pocket with personal savings, retirement income, or the sale of assets such as a home.

Depending on the policy, Long Term Care insurance can help cover some or all of the costs of Assisted Living.

Veterans benefits may also be available for retired service people or their spouses who meet certain eligibility requirements.

Medicaid can cover some of the cost of Assisted Living for those who meet the income and asset requirements, but not all facilities accept Medicaid.

Good news from the IRS! Tax laws allow certain individuals to deduct a portion of Assisted Living expenses from their taxes. As tax laws can change annually, be sure to check with a qualified tax professional or the IRS website for up-to-date information.