The Cost Of Senior Living And Why It Varies

Cost of Independent Living

Independent living is a type of retirement community that is ideal for active older adults who require little daily assistance, but seek a vibrant social community without the hassle of chores and home upkeep. Residents live in a private studio or a one- or two-bedroom apartments within an independent living community of seniors in a similar age group.

There is little published data on average costs, but you can typically expect to pay a monthly cost of about $1,000 to $6,000 which covers services as dining, housekeeping and social activities.

Cost of Assisted Living

Assisted living is a senior care option that is ideal for seniors who cherish their independence but also need assistance with activities of daily living (ADLS). Residents enjoy the same amenities available in a community (like independent living), but they receive additional support which may increase the price.

According to Genworth Care Survey, which has been following cost trends since 2004, the average annual cost of a private one-bedroom in an assisted living community in 2020 is $51,600.

That’s just the average annual cost, remember, these assisted living costs can vary widely from state to state. On the Frontier Senior Living site alone there are 120 location across 19 states—the assisted living costs of each can vary widely depending on the location.

On the high-end of the spectrum, the state of Massachusetts has a monthly median cost of $6,085; meanwhile, Alabama has a monthly median of only $3,150 (Genworth). These monthly rates cover housing, personal care, and support with such tasks as bathing, dressing, and medication management.

Cost of Memory Care

Memory care is a senior living option that is specifically designed to nurture and support those with dementia, including Alzheimer’s disease. Residents enjoy many of the same amenities and social activities of the previous two types of communities, but they also receive personal care that’s tailored to their increased safety needs.

There is not much official published data on memory care, as these can be facilities of their own or units within assisted living communities.

Generally, the cost of care may increase as the disease progresses and becomes harder and harder to manage.

For example, someone in the mid-stages may only have to pay monthly costs of about $4,000 while someone in the more severe stages who need constant hands-on care could expect to pay monthly costs of about $7,500. This covers 24-hour supervised care with meals, activities, monetary, and health management services.

Cost of Nursing Home

Skilled nursing and rehabilitation communities provide two types of care: short-term services for those who require 24-hour nursing care following an operation or other type of hospital stay, and long-term care for those with chronic health issues who can no longer live independently.

According to the Genworth Care Survey, the average annual cost of a private room in a nursing home in 2020 is $105,850. 

Again, this could depend on the location with Massachusetts having a monthly cost of $13,535 and Alabama having $6,911.

Daily rates can also range for each type of care, with short-term stays typically having a daily rate that is significantly lower than the annual cost of long-term care. Medicare may even cover some or all of the stay, for example, if a senior needs skilled nursing care for an average of 15 days, Medicare will cover up to 20 days. Past this benefit period, however, the amount you pay is still fortunately manageable at around $175 daily.

On the other hand, Medicare typically does not cover long-term care services in a nursing home which means your daily rate might range from $189 per day in a place like Missouri to $1,196 per day in Alaska.

These daily costs cover skilled nursing, health care, and 24-hour supervised care by a licensed physician or nurse as well as physical, speech, and occupational therapists.

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