{"id":12504,"date":"2019-02-18T07:00:45","date_gmt":"2019-02-18T13:00:45","guid":{"rendered":"https:\/\/www.senioradvisor.com\/blog\/?p=12504"},"modified":"2019-08-13T11:04:17","modified_gmt":"2019-08-13T16:04:17","slug":"busting-senior-care-myths-assisted-living-costs-too-much","status":"publish","type":"post","link":"https:\/\/d30braiqprupoq.cloudfront.net\/blog\/2019\/02\/busting-senior-care-myths-assisted-living-costs-too-much\/","title":{"rendered":"Busting Senior Care Myths: Assisted Living Costs Too Much"},"content":{"rendered":"

Busting Senior Care Myths: Assisted Living Costs Too Much<\/h1>\n

Last Updated:<\/strong> February 18, 2019<\/p>\n

Talk to anyone who’s new to caregiving and you’ll run into a lot of common knowledge and received wisdom that’s, well, not quite accurate.\"Busting<\/p>\n

To help people get reliable information so they can help their families, we’re discussing the common, mistaken notion that assisted living costs too much to be practical for people who can no longer live alone safely.<\/p>\n

1. Assisted living costs aren’t rising as fast as you think.<\/h3>\n

As A Place for Mom’s former data scientist, Ben Hanowell,\u00a0shares, assisted living costs aren’t going up year after year the way some other costs are.\u00a0He reported that from 2012-2016, the median\u00a0annual growth rate of costs for assisted living<\/strong>, independent living and memory care was just \u201c1.8%\u00a0or about $62 per year.\u201d Genworth bases its projections for the future cost of care on an assumed 3% yearly rate of inflation.<\/p>\n

But some other costs that affect seniors and their families are rising, too. Take rent for example. The\u00a0national median rental rate<\/strong><\/a>\u00a0rose by more than 8% from 2012-2015 \u2013 not good news for apartment dwellers. Although food prices vary from season to season, overall they are rising, too. From 2012-2016, the\u00a0cost of food<\/strong><\/a>\u00a0items in the U.S. consumer price index rose by 6.1%. Depending on assisted living, housing and grocery rates where you\u00a0live,\u00a0assisted living may cost less now (or in the near future) than renting a home and buying all of your own food.<\/p>\n

2. Assisted living can cost less than full-time in-home care.<\/h3>\n

While in-home care is a bargain compared to the cost of nursing home care, the cost of full-time in-home assistance can add up quickly. In some parts of the U.S., 40 hours a week of in-home care costs more than the total monthly rate for assisted living and round-the-clock in-home care can cost considerably more.<\/p>\n

In California, for example, the median cost of a full-time in-home health aide is $4,576 per month \u2013 more than $700 more than the median cost of assisted living. That’s about the same cost difference as Florida, where assisted living costs a median of $3,045 and in-home health assistance costs $3,766. That cost difference doesn’t factor in other expenses that go along with renting an apartment or maintaining a home.<\/p>\n

3. Assisted living can make family finances more secure.<\/h3>\n

Most advice to adult children of parents who need care focuses on self-care for the stress that caregivers experience. But family caregivers also face huge financial challenges that don’t get talked about as often. Many times, working-age adults \u2014 some with children still at home\u2014 move a parent in with them to save money on senior care. It seems like the most practical and thrifty solution, but research has shown that over time, this approach to caregiving\u00a0sometimes makes the family’s financial situation worse.<\/p>\n

That’s because many family caregivers, especially working women, end up cutting back or quitting their jobs to take care of their parents. The Atlantic reported a study of women who did just that, which found that they lost an average of $324,000 over the years they were out of the workforce. By the time\u00a0family\u00a0caregivers are free to return to work, they face age discrimination and the challenge of getting hired with out-of-date skills and a resume gap. As Liz O’Donnell wrote in The Atlantic, \u201cHow will they afford their own care<\/strong><\/a>\u00a0later in life if they can\u2019t save for it at midlife while they are caring for someone else?\u201d\u00a0Assisted living can help seniors live safely and sociably while preserving financial stability for their children and grandchildren.<\/p>\n

4. Assisted living may cost less than ongoing home expenses.<\/h3>\n

For renters, the cost of in-home care plus rent, insurance and utilities can be far higher than the cost of assisted living. That’s also true for homeowners who are still paying off their mortgage. But even for people who own their homes outright, there are other ongoing costs that can make aging in place an expensive proposition.<\/p>\n

Property taxes and utilities can cost several thousand dollars per year. And as homes age, they need the occasional big repair to stay livable. Foundation repairs or new cooling and heating units can easily cost $10,000 or more. If your parents’ home is older and in need of major work, assisted living may be a more practical, safer and less costly option.<\/p>\n

5. Assisted living costs vary from place to place.<\/h3>\n

According to\u00a0Genworth Financial’s national cost of care survey<\/a><\/strong>, the median monthly cost of assisted living in the U.S. is $3,628. But that number may not reflect what communities near you or your\u00a0parents\u00a0charge \u2014 and those costs can vary widely from state to state and, within states, from one city or town to another. Here are a few examples.<\/p>\n

Median monthly assisted living costs for selected states, 2016:<\/p>\n