Financing Your New Living Arrangement
You may not have a significant change in expenses if you are moving but still maintaining your independence in a smaller single-family home, condo or apartment. On the other hand moving into a CCRC or assisted living facility can require significant upfront cash payments of tens to hundreds of thousands of dollars. According to the MetLife Survey of Nursing Homes and Home Care Costs, the average cost for nursing home care is between $64,000 and $74,000 annually; however costs can be significantly higher in certain areas. Most seniors do not have adequate personal savings to cover all costs out of pocket.
Without a game plan it can be difficult if not impossible to finance a move that will accommodate your needs and preferences. Consider that as you age you will likely be in a position of earning less income and/or watching your expenses increase as your fixed income remains the same. The financial reality is sobering -- two-thirds of single seniors and one-third of couples where one spouse is in a nursing home fall into poverty after being in a nursing home after just 3 months. The average person has only enough money and financial resources to pay for seven months in a nursing home.
If you or a loved one is considering a move, begin looking into and researching your financing options.