According to the Federal Long-Term Care Insurance Program, the average cost of independent living is around $3,000 per month. It's one of the more affordable senior housing options available, but the cost can still be a huge burden for most seniors.
You shouldn't have to worry about retirement living costs, though. So, to make things easier on yourself, you should think ahead regarding funding senior living.
Before you get to retirement, start budgeting and saving up to avoid future financial surprises. This article will discuss paying for independent living in Dallas, TX, and how to plan accordingly.
Independent living communities offer comfortable and private residences to older adults who don't require medical assistance. If this sounds appealing to you, then here are the ways you can pay for independent living.
While budgeting for aging, you may have accumulated money in a private savings account and/or have retirement income. This is the most common and direct method to pay for independent living.
Sources here include:
As a tip, you should add all monthly income and subtract the estimated community costs. If there's a gap, then review your liquid assets or alternate income sources.
Fannie Mae says that 56% of older Americans say they will never sell their houses, so you might fall into the other half. Selling your family home can be a powerful financial move if you'd like to be more financially sound for independent living.
Not only do you get money to pay for it, but you'll eliminate things like:
An alternative is to downsize by selling and buying a smaller condo in the meantime. Or you can rent the current property out to gain monthly income. However, it'll require property management and risk tolerance.
We'd recommend using a realtor experienced in senior transitions. Or you can also consider a financial advisor for asset reinvestment.
Long-term care insurance (LTCI) isn't meant to be a long-term solution, as it usually doesn't cover independent living. However, the exception is if it's part of a multi-level care community (e.g., CCRC or IL + AL setup).
This type of insurance will cover:
Some hybrid life and LTC policies allow you to use the funds more flexibly, especially when you add care services to independent living. You should review your LTCI policy carefully with an elder law attorney or insurance advisor to learn more.
Some wartime veterans and their surviving spouses may qualify for VA Aid and Attendance. This is a monthly pension add-on that can be used toward living expenses, even while in independent living.
Here are the eligibility requirements:
You should work with a VA-accredited claims agent, the Texas Veterans Commission, or an elder law attorney for accurate filing.
Are your funds temporarily tied up? For example, you may have a home sale in progress and need money now.
You can consider bridge loans or other short-term financing options, such as:
You should only use these if you expect a defined payout within 6-12 months. Otherwise, they may not be wise choices.
There are ways to use your life insurance policies creatively to pay for independent living. Your options include:
Do note that these options reduce or eliminate the death benefit, so it's wise to consult a financial planner first.
If you have loved ones you can rely on, then perhaps they can combine resources to help you move into independent living.
Strategies you can use are:
To make this work, have open communication and clear expectations. You can rely on formal agreements to avoid misunderstandings and to avoid legal troubles.
Financial planning in Dallas isn't that difficult for seniors who want to get into independent living. Here are the steps.
You should:
You can use a spreadsheet to compare everything or work with a financial advisor.
Explore your options after you've put together a budget. Compare what's included, and ask about things like entry fees, move-in specials, and whether costs increase annually.
General things to consider are:
Consult a certified senior advisor (CSA), certified financial planner (CFP), or elder law attorney. They can help:
You may initially be secure in independent living, but things can change quickly. You'll need a backup plan in case your health deteriorates and you need extra care that independent living can't provide.
You should document a care plan and keep copies of legal and medical directives on file.
Paying for independent living may be a challenge for some older adults, but it's not impossible. If you start saving early, calculate your expenses vs. income, and consult with professionals, then you'll be better prepared for the future.
When you have all these things handled, you'll have better peace of mind. And as a result, you'll feel more excited about weighing your options regarding the new community you'll be living in.
Want more information about senior living in Dallas, TX? Then contact us today. Whiterock Court Senior Living provides light housekeeping once a week for our residents in our pet-friendly apartments.