One of the many benefits of moving to a senior living community is simplified finances. In most communities, you pay a monthly, all-inclusive fee that covers a range of expenses from dining to housekeeping.

Though this fee will vary depending on where you choose to call home, the average median cost of independent living in the U.S. is $2,552, according to A Place for Mom. In New Hampshire, you can expect to pay a bit more — about $3,200 per month.

If you're seeking long-term care for yourself or a loved one, understanding the full financial picture is crucial. The monthly median price of senior care can range from $2,500 at an independent living facility to $8,800 at a nursing home. For the average family, the thought of footing this expense can be overwhelming. Luckily, affording long-term care isn't as complicated as it may seem.

In this comprehensive guide, we'll walk you through everything you need to know about senior living costs, payment options, and strategies to make quality care affordable for you and your family.

Contents

Understanding Senior Living Pricing Models

Senior living communities normally adopt one of two pricing structures: fee-for-service or all-inclusive.

With a fee-for-service model, a resident pays a base rate for their apartment home. Then, they're charged extra for services.

Comparatively, all-inclusive communities charge a single fee. This fee may cover dining plans, utilities, and other expenses.

Havenwood Heritage Heights uses a hybrid of these two models. Since we're a maintenance-free community, the monthly fee covers a host of convenient services and amenities. However, additional services are available for a nominal charge.

What's Included in Senior Living Costs

Since all communities are different, exactly what's included in your monthly charge will vary. However, at most all-inclusive senior living communities, you can expect your recurring payment to cover:

Housing

The most obvious expense included in your monthly fee at a senior living community is housing. Typically, residents can select from a variety of floor plans, choosing a home that suits their needs.

At Havenwood Heritage Heights, residents have their choice of studio, one-bedroom, and two-bedroom cottages. Some floor plans even offer garages and basements. The more spacious floor plans are more expensive. A studio cottage, for instance, is $1,500 while a two-bedroom cottage is $3,375 to $4,115 per month.

Home Maintenance Services

In a maintenance-free community like Havenwood Heritage Heights, residents don't have to worry about the responsibilities of homeownership. That's because, for no extra charge, the staff provides home maintenance services such as landscaping, trash removal, snow removal, and building maintenance. The staff also provides 24/7 security to ensure the safety of residents.

Scheduled Transportation

In many senior living communities, the cost of transportation services is included in the monthly charge. At Havenwood Heritage Heights, for example, we offer scheduled transportation between our two campuses and to churches, downtown shopping, banks, and medical and professional appointments.

Amenities and Social Activities

To help residents fill their days with meaningful experiences, senior living communities develop activity calendars full of enriching senior events and programs. Most communities also provide luxurious amenities like indoor and outdoor pools, community greens and walking trails, fitness centers, libraries, business centers, movie theaters, woodworking shops, cultural arts centers, and chapels and meditation rooms.

Utilities

In some communities, all utilities are included in the monthly service fee. That means residents don't have to worry about paying individual bills for water and sewer, electric, gas, phone, cable, and Wi-Fi. But in other communities, residents are responsible for some or all of their utilities.

Dining

Different senior living communities offer different dining plans. Some communities offer plans that provide a certain number of meals per month. Other communities charge a set dollar amount per month that residents can apply toward meals, groceries, or get-togethers with friends and family.

Additional Costs to Consider

In addition to your monthly recurring charge, you may be expected to pay other fees when you move to a senior living community in Concord, NH.

Long-Term Care

CCRCs provide various levels of care, including independent living, assisted living, skilled nursing, rehabilitation, and memory care.

Typically, your monthly costs will rise as you transition from independent living to higher levels of care. At Havenwood Heritage Heights for example, independent living residents pay anywhere from $1,480 to $4,505, depending on whether they choose a studio apartment or a single-family home with a garage and basement. Similarly, assisted living ranges from $4,030 to $6,935. Memory care residents pay $325 per day for a semi-private room and $378 per day for a private room.

Special Activities

Normally, residents can participate in scheduled programs and events for free. But some special events may require an additional fee. For instance, an art class that uses specific materials or that requires an instructor from outside the community may charge an extra fee to cover costs.

Extra Services

Most communities charge fees for additional, optional services such as housekeeping, laundry, carpet cleaning, pet care, and medication management.

Entrance Fees

If you hope to put down roots at a CCRC in Concord, you'll be expected to pay an entrance fee. An entrance fee is an up-front cost paid to a CCRC that secures your spot in the community. Entrance fees can cost between $100,000 and $1 million. Though, the average fee is about $300,000.

Just how much you can expect to pay will depend on the community you select as well as the type of long-term care plan you choose. Some communities refund all or some of the entrance fee to the resident or the resident's estate when they move out or pass away. However, at some senior living communities, the entrance fee is non-refundable. This is an important distinction to consider when you begin comparing different CCRCs.

Estimating Your Long-Term Care Costs

The first step to paying for senior living is to determine how much it will cost. The ultimate cost of senior care depends on many factors that you should carefully consider when planning your budget.

Senior Living Care Needs

How much support you or your loved one needs will significantly impact the cost of senior living. As a rule: The more assistance provided, the higher the cost of care.

For example, assisted living in New Hampshire costs about $6,000 per month according to Caring.com. Comparatively, skilled nursing can cost as much as $11,315 per month. In short, an aging adult with more complex care needs should plan on spending more on senior living. However, even relatively healthy seniors should account for the expense of evolving care needs.

Location of Senior Living Facility

The location of where you or your loved one will receive long-term care also has a significant impact on price. Typically, senior living communities in high cost of living areas will be more expensive than communities in average or low cost of living areas.

This fact may influence where you decide to put down roots. If you don't have the resources to afford care in a specific city, you may choose to relocate to a more rural community or a different state altogether.

Senior Community Services and Amenities

When estimating your long-term care budget, it's important to understand the services and amenities offered at each senior living community. Communities vary widely. Some offer luxurious, resort-style conveniences like on-site movie theaters and heated pools. Others provide no-frills options that are more affordable.

If you're working with limited resources, you must decide which services and amenities are worth the extra cost.

Money-Saving Strategies

When evaluating senior living communities, there are ways to shave hundreds — if not thousands — of dollars off your annual long-term care costs.

Ask About Discounts

Many senior living communities offer discounts if you select certain floor plans, move in during a specific timeframe, or opt for a longer lease. Don't be afraid to ask community representatives about these special promotions.

Be Candid About Your Budget

Be honest about your budget when you meet with community representatives. Some may be willing to work with you and find options that suit your finances.

Reconsider All-Inclusive Communities

All-inclusive communities are very convenient since they bundle all costs — from dining to landscaping — into a single recurring charge. However, if you're working with a limited budget, you may look into senior living communities that offer select services on an à la carte basis. This allows you to pick and pay for what you truly need.

Consider Smaller Spaces

If you or a loved one is struggling to pay for long-term care, you may consider opting for a smaller space. Rather than a two-bedroom cottage, for instance, you may select a studio apartment. If your loved one is transitioning to a Concord assisted living or memory care community, you may also consider a semi-private room as opposed to a private room.

Private Payment Options

After determining the exact cost of senior care, the next step is to consider payment methods. Typically, families finance senior living through a combination of various private pay options.

Personal Savings

Although it's not an option for everyone, the simplest way to pay for senior living is by tapping your savings. Your savings may include traditional savings accounts, IRAs, certificate of deposits (CDs), and stocks, bonds, and money market accounts. You may couple these funds with your monthly Social Security or pension payments to afford the Concord NH senior living community of your choice.

Annuities

If you have money earmarked for retirement but are worried that the funds won't be sufficient, you may consider investing in an annuity. An annuity is a contract between you and an insurance company in which you make a lump-sum payment. In return, you receive regular disbursements over a certain period of time. Purchasing an annuity can help you stretch your financial resources and ensure that you always have a source of monthly income.

Long-Term Care Insurance

Long-term care insurance is designed to cover select expenses associated with senior living. Typically, these policies reimburse policyholders a daily amount for services to assist them with activities of daily living like bathing and eating. However, most long-term care insurance policies have limits on how long or how much they will pay. If you have already purchased long-term care insurance, contact your agent to understand how to use the policy.

Life Insurance

Life insurance is normally thought of as a benefit for surviving family members. However, in some cases, the company that issued your life insurance policy will buy it back for 50 to 75 cents on the dollar. You can also sell the policy to a third party in exchange for a settlement. To find out if your life insurance policy can provide you with immediate financial support, speak to your agent about living benefits.

Home Equity Options

Many seniors sell their homes to fund long-term care. However, another option is a cash-out refinance. With a cash-out refinance, you can withdraw a portion of your home's equity in a lump sum. A cash-out refinance is a good idea if you want to keep your home, perhaps for a child or grandchild to inherit. However, keep in mind that this refinancing method will increase your monthly mortgage.

Bridge Loans

A bridge loan is a short-term loan that provides aging adults with the funds needed to transition to senior living. Typically, a bridge loan is secured by your home and paid back once your home sells. Unsecured bridge loans can also provide immediate cash flow for seniors who don't have a home to put up as collateral.

Health Savings Account (HSA)

A health savings account (HSA) lets you set aside pre-tax income to pay for medical expenses. In some cases, your HSA assets can be used for medical services rendered at a long-term care community. In other cases, you can withdraw a lump sum from your HSA to help with the costs of senior living.

Family Assistance

When adult children have ample financial resources, they may be able to help their aging parents pay for senior living. Of course, not every adult child is in the position to help their parents financially. However, for some families, splitting the cost of senior living between siblings is less expensive than moving the parents into a sibling's home or traveling to provide caregiving duties.

Government Programs and Benefits

For aging adults with limited assets, paying for senior living can be much more difficult. However, there are government programs that can help defray the costs of long-term care.

Medicare

Medicare is a government-funded insurance program available to Americans who are 65 or older. Unfortunately, Medicare doesn't cover the cost of assisted living or any other form of long-term residential care.

However, this program may cover short-term care expenses, including:

Medicare will not pay to cover the cost of room and board. Any "custodial" care that includes personal care, medication reminders or other daily living assistance is not covered by Medicare.

Medicaid

Medicaid provides financial support to seniors who can't afford long-term care. This federal program, managed at the state level, may help to pay to cover the costs of assisted living care or home-based services for seniors.

Long-term care benefits include assistance with personal care like bathing or toileting, inpatient and outpatient hospital services that aren't covered by Medicare, home health services after an injury or hospitalization, rehabilitation services and hospice care, and respite care for a limited period of time.

It's important to note that Medicaid benefits and eligibility requirements vary from state to state. If you or a loved one hope to apply for Medicaid, it's advised that you first contact your state medical assistance office. You should also keep in mind that not all senior living communities accept Medicaid assistance.

Veterans Benefits

The U.S. Department of Veterans Affairs offers two types of long-term care benefits:

VA Aid and Assistance: This benefit provides a substantial monthly payment on top of existing VA pensions for veterans and surviving spouses who need assistance with activities of daily living. Veterans who are in need of certain medical or health care services may qualify for additional financial support outside of their normal pension amount. This type of care may work to pay for short-term care and more long-term assistance including adult day services, assisted living, nursing home care and more.

Housebound Benefits: This benefit provides supplemental income for veterans and surviving spouses who spend most of their time at home because of a permanent disability.

To qualify for these benefits, you or your loved one must meet basic eligibility requirements: Veterans must have had at least 90 days of active duty, with one of those days being during wartime; a veteran or surviving spouse's net worth must be below $130,773; and clinical requirements vary, but the highest amount is awarded to seniors who need assistance with activities of daily living.

Professional Guidance and Next Steps

Navigating the costs of senior living can be overwhelming for many families. If you're the adult child of an aging parent, you want the best for your mother or father. However, you may not be in a position to help them financially. If you're a senior exploring aging in place in Concord NH for yourself, you may no longer feel comfortable living alone. However, you're likely worried about footing the expense of a senior living community.

If any of the payment programs mentioned aren't an option for your family, there may be other financial support alternatives available to you. Speaking with a financial professional or elder law lawyer may help your family better understand the options that are available to you.

At Havenwood Heritage Heights, we understand your concerns and are here to make the transition to senior living easier. As a continuing care retirement community in Concord, NH, we provide a variety of affordable options to suit your budget. Most seniors say transitioning to a Concord CCRC was the best decision they've ever made. In fact, many wish they had moved sooner.

But before you take the leap, it's important that you fully understand the costs associated with senior living. You must also create a plan that'll allow you to afford the retirement you deserve. Depending on your financial situation, this may involve selling your home, making use of government assistance, or relying on another payment method.

We want to help make sure that our residents have every opportunity to receive the medical and healthcare services that they need. To learn more about Havenwood Heritage Heights and how we can help you navigate the costs of senior living, or to schedule a tour, contact us today.