Senior Living Secrets: Five Solutions for Funding Your Retirement

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What does your dream retirement look like? If it includes relaxation, fun, amenities and peace of mind, you just described senior living. Yes, senior living. Don’t let old perceptions or the initial sticker shock deter you. Look closer and you’ll find a senior living community may just give you the active, engaging retirement you’ve always wanted. And here, we’ll give you the secrets to funding it.

Cost Concerns

It’s true, senior living doesn’t come cheap, but quite frankly, neither does aging in place at home. Unfortunately, many seniors take those costs at face value and automatically assume they can’t afford senior living. But, there are actually a number of ways to offset the cost, putting senior living well within reach.

Solution One:  Veterans Aid & Attendance Benefit 

Wartime veterans or a surviving spouse with limited income may be eligible to receive a non-service connected pension (above the basic pension) to assist in paying for assisted living, home health care, adult day care or skilled nursing if you meet certain conditions.

Solution Two: Long-Term Care (LTC) Insurance

LTC insurance can help you pay for the cost of home care, adult day care, assisted living, memory care, skilled nursing and hospice by covering services typically not covered by health insurance, Medicare or Medicaid. However, the older you are when you purchase the policy, the more expensive your premium might be. 

Solution Three: Life Insurance Conversion

If you have an in-force life insurance policy you may be able to convert it into a pre-funded financial account that disburses a monthly benefit to help pay for needs such as home care, assisted living, skilled nursing and hospice. Unlike life insurance, this account is a Medicaid qualified asset.

For more information on senior living, check out our Family Guide to Funding Senior Care & Housing!

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Solution Four: Reverse Mortgage 

This is a type of home equity loan for homeowners 62 or older who want to access its equity to supplement retirement income. The lender makes payments to the borrower based on a percentage of accumulated equity and the loan must be repaid when the borrower dies, sells the home or permanently moves out.

Solution Five: Current Assets as Collateral

You may already have more funding sources available to you than you realize. Consider selling or renting your home, for example. What savings, stocks, bonds or annuities do you have? And don’t forget about income such as Social Security or a pension. Also, are you paid dividends from stocks? Any or all of these can help towards senior living costs.

Making the Retirement You Want Reality

Now that you know senior living is actually more affordable than you thought, let’s talk details on how it can bring that dream retirement of yours to life. For starters you’ll have freedom from chores and home maintenance. It’s a worry-free lifestyle with housekeeping, laundry services and restaurant-style dining. 

If that feels resort-like, wait until you see the campus with lush green landscaping, beautifully decorated interiors, spacious accommodations and amenities such as a pool, fitness centers and onsite beauty salon. Then there’s the monthly calendar that’s overflowing with clubs, classes, events and outings. You’ll never want for something to do or a friend to enjoy it with! But what’s invaluable is the peace of mind that comes with knowing you’ll always have care and support, if and when you need it.

It’s because of these benefits that more and more people are moving to senior living, even while perfectly healthy!

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