A MATTER OF DOLLARS AND SENSE
How Much Should You Expect to Pay for a Retirement Home?
by Robin Kalmek
The good news: North Americans are living longer, as improvements in medicine, diet and lifestyle increase life expectancy. The bad news: a larger number of people will need some sort of care or assistance during their retirement years, whether that comes in the form of in-home care or moving into some sort of retirement home.
Because most seniors want to “age with dignity,” and they don’t want to burden their children with the sometimes full-time job of caring for an elderly parent, they are increasingly turning to assisted living facilities. But the costs of such facilities can be daunting, unless you have a plan to pay for them.
The general price range for senior housing facilities varies widely, depending on location. For example, some states have both the lowest and the highest average monthly costs, with a range from just under $1,500 per month to over $10,000 per month. Costs differences are usually based on where the home is located, and what type of accommodations the senior chooses, which can range from a small studio apartment to a townhouse or a single-family home. In addition, the level of services required by the resident will also factor into the costs. The costs for most private assisted living facilities are typically paid out of pocket, although insurance policies can be purchased to assist with the cost of care.
If a senior needs long-term care, costs vary widely between states. Nursing homes are usually owned by private corporations, while municipal homes for the aged are owned by municipal councils, who are usually required to build such a home. Charitable homes are usually owned by charities and non-profit corporations.
Seniors moving into a public facility, pay for their services based on their annual income. Services that are based on the senior's personal choices, such as cable, telephone and personal care supplies, are not included in the monthly rate set by most seniors homes. Also, convalescent care and hospice care charge a daily rate, rather than a monthly fee. If seniors are unable to afford it, they can be assessed to see whether they meet the requirements of the jurisdiction for a rate reduction.
Private seniors homes are not usually supported by the government nor funded by the Health Boards and Long-Term Care, which understandably makes them a less appealing option from a financial perspective for lower income families. However, the quality of care and the amenities often justify the extra costs applied. With prices ranging widely, depending on the level of care and type of accommodation, fees for private facilities can start from around $100 per day, and reach over $235 daily fee / $85,775 per year in many cases.
Retirement homes offer a variety of care options for every senior. The greatest effect on costs will be the level of care needed by the senior resident. However, cost alone shouldn’t determine where a senior lives. Most important is their health and overall comfort.
