The Financial Reality of Aging in Place
As we grow older, the conversation surrounding senior living can’t be considered without factoring in finances. When considering options, many families instinctively lean toward staying at home, believing it to be the most cost-effective solution. While this may seem true at first glance, a deeper dive into the financial and lifestyle considerations reveals that the total cost of staying at home can rival or even exceed the cost of an assisted living community.
A recent Wall Street Journal article highlights findings from an AARP study showing that 77% of Americans aged 50 and older wish to age in place at home. However, the financial reality of doing so often catches families off guard, especially as home care or health services become necessary. A report by the American Seniors Housing Association (ASHA), The Surprising Price of Staying in a House, reveals that in-home care services can significantly inflate costs, often surpassing those of senior living communities that include amenities such as 24/7 support, meals, and social activities in their pricing. Since ASHA’s 2017 analysis, inflation has further widened this gap, with homeownership and care expenses rising faster than senior housing costs.
The ASHA report estimates that the cost of maintaining a median-priced $400,000 home, including taxes, utilities, and maintenance, averages $3,725 monthly. Adding modest home health care of four hours daily, five days a week, brings the total to approximately $6,365—higher than many assisted living options. For those needing more extensive care, such as 44 weekly hours for memory support, the combined cost of in-home care and home maintenance can exceed $9,500. These findings underscore the importance of thoroughly evaluating the real costs of aging at home versus transitioning to a senior living community.
But the benefits don’t come down to only numbers. Here, we’ll explore the financial realities of living at home and the comprehensive benefits senior living communities, like Benchmark Senior Living, can provide to meet both financial and lifestyle needs.
The Hidden Costs of Staying at Home
Staying in your home can feel comforting, but it comes with hidden costs that add up over time, including:
Home Maintenance and Upgrades: Regular upkeep such as landscaping, plumbing repairs, or roof maintenance. This also includes accessibility modifications like stairlifts, ramps, or bathroom renovations to accommodate changing mobility needs. When domestic tasks are neglected, it can add up and overwhelm, creating a negative impact on the mental health of the person living there.
In-Home Care: As health needs evolve, hiring home health aides or nurses can become necessary, with hourly rates adding up quickly. Costs vary by region, but 24/7 care or specialized memory care can be especially expensive. Without someone in the household to be there in case of emergency, anxiety about falls or health scares can spike.
Daily Living Expenses: Grocery shopping, food takeout, and transportation services for errands or appointments. Additionally, utilities and property taxes which continue to rise with inflation.
Social Isolation: Lack of regular social interaction can lead to loneliness and impact mental health, potentially increasing medical expenses in the long term.
The Value of Senior Living Communities
Assisted living communities provide a comprehensive approach to addressing these hidden costs while enhancing quality of life:
All-Inclusive Living: Most of our Benchmark’s senior living communities offer beautifully maintained residences, eliminating the need for home repairs and upgrades. Utility costs, meals, housekeeping, and maintenance are included, simplifying monthly budgets. Apartments and communities are outfitted to meet seniors needs, with specialized bathrooms and wide hallways.
Personalized Care: Access to professional caregivers ensures most health needs are met without the logistical challenges of hiring external help. Specialized programs like our Mind and Memory Care support those living with Alzheimer’s or dementia.
Built-In Social Opportunities: Daily activities and group events encourage connection and combat loneliness. On-site amenities at many of our communities such as fitness centers, art studios, and gardens provide residents with opportunities to stay active and engaged.
Peace of Mind: Families gain confidence knowing their loved ones are in an environment with 24/7 personalized care and support.
Making an Informed Decision
Many individuals fund senior living using proceeds from selling their home, personal savings, and Social Security income. However, additional resources such as Veterans’ Assistance and long-term care insurance can help supplement these costs. Exploring all available financial options can provide a clearer understanding of what fits within your budget.
The Surprising Price of Staying in a House report highlights that a senior living community is often more affordable than people expect, particularly when compared to the expenses of aging at home. Beyond the financial aspect, the enhanced quality of life and peace of mind that senior living offers are truly invaluable.
Choosing between staying at home and moving to a senior living community is a deeply personal decision. By considering both the financial implications and lifestyle benefits, families can make informed choices tailored to their unique needs and goals. Benchmark is here to guide you through this process, offering tours, consultations, and resources to help you evaluate your options. You can take the next step at home: take a look at our Informed Financial Decisions [INSERT LINK] chart, an easy way to compare your current at-home costs versus a plan with Benchmark.
Discover how Benchmark Senior Living can enhance your life or that of a loved one, or a patient/client and schedule a tour today to experience our vibrant communities firsthand.
