You’ve heard the saying about how every journey begins with the first step—it’s also true when beginning your journey of funding senior living. Even if you aren’t sure where the road is going to take you, following these three steps can help you plan for how to manage the cost of assisted living.

At Carriage Crossing, we are here to help answer any questions you have, whether about putting together a financial plan or choosing assisted living.

Related: Funding Senior care: Exploring Your Options

Assisted living cost: Why having a plan now is so important

Whether planning for yourself, or for a loved one, you might be thinking it’s too early. You’re doing okay on your own, your health is sound, and everything seems to be smooth. However, needs can change quickly, and the best strategy is to be as prepared as possible for the future.

Yet so many older adults are caught off-guard when it comes to how to pay for assisted living.

In fact, The Long Term Care Poll reports that about 40% of those aged 40 and older lack confidence that they will have the financial resources they need to pay for the care they will need as they get older. That’s a worrisome statistic, when you consider the odds of needing long-term care at some time in life;

• More than half of Americans turning 65 today will develop a disability serious enough to require long-term service and support.
• The median monthly assisted living cost for a private one-bedroom apartment is estimated at $5,511.
• Seniors who require long-term care will need an average of $138,000 worth of long-term support services. Consumer Affairs reports that while insurance and public programs will cover some of these costs, the study estimated that families will pay for 37% of the costs themselves, with approximately 14% of seniors paying over $100,00 out of pocket on long-term care expenses.

The cost of that care varies based on care setting, geographic location of care and level of care required, among other things, according to the 2024 Genworth Cost of Care Survey.

Strategy steps to prepare for assisted living costs

Every family is unique, and you will want to follow the path that works best for you. We’d like to suggest these general steps for getting prepared financially as you tackle your budget for future care needs.

1. Get it all together

If you’re like many busy people, your documents and paperwork are located in different places. File cabinets, safety deposit boxes, even shoeboxes under the bed. You might have stored your information on your laptop for safe keeping. Wherever your important documents are, it’s time to get them in one place. Here are some suggestions on what to gather:

• Bank and brokerage account information
• Deeds and mortgage papers
• Insurance policies
• Monthly or outstanding bills
• Pension and other retirement benefits
• Social Security payment information
• Stock and bond certificates

If you are assisting a loved one in this process, be patient if they seem hesitant to reveal all of their financial information. They might feel as though they will be giving up all control if they turn over documents and reveal their personal information. Be sure to let them know you are only acting in their best interests; they will be included in all decisions and the ultimate goal is for them to benefit from a comfortable, safe, and enriching lifestyle where they can look forward to each day without worries of the future.

2. Put a plan together that’s about more than money

There’s a lot to consider besides just how to pay for assisted living.

• What kind of lifestyle are you or your loved one most interested in?
• What type of amenities will you want?
• Have you considered the location?

There are many factors that affect the assisted living cost, as well as the overall cost of long-term care. Discuss wishes, needs and goals.

In addition, be sure your plan covers how to handle ongoing financial duties, including paying bills, managing benefit claims, making investment decisions and preparing tax returns. Will you be responsible, or will you need the assistance of a family member or investment professional?

3. Call in the pros

Budgeting for assisting living costs or long-term care in general is an important undertaking. Take advantage of the expertise and experience of professionals wherever possible. For example, a financial advisor or estate planning attorney who specializes in elder care and/or long-term care planning to discuss:

• Insurance options
• Pension, retirement benefits and personal property that may be potential income
• Programs in which you are eligible
• Potential tax deductions
• Analyzing investment portfolio with your loved one’s long-term needs in mind
• VA benefits

Are you looking for more information about our senior living community or seeking a little guidance for you or your loved one? Let us help.

At Carriage Crossing, our expert staff is dedicated to ensuring that every resident in our community is engaged, fulfilled, and at home. We can answer questions, find the information you need to feel comfortable in your senior living search, and set up a tour of our communities so you can experience the warm and home-like environment for yourself.

Contact us today – we’re ready to welcome you home! Schedule your tour and see for yourself. And download our free Funding Guide for more information.