Understanding the Cost of Long-Term Care

Deciding on the best living arrangement and care options can be both an emotional and financial challenge for older adults. The costs associated with long-term care vary widely depending on the type of care provided, where the individual resides, and the level of support they need.

Two common scenarios for older adults are: a) aging at home with in-home care or b) living in an independent senior living community and supplementing with a part-time caregiver. Understanding the cost implications of each option is crucial to making informed decisions that balance care quality and financial sustainability.

Aging in place at home

For many older adults, the desire to “age in place” in their own homes is strong. However, staying at home often requires modifications to ensure safety and accessibility, such as installing ramps, grab bars, or stairlifts. Once the home is equipped to meet mobility and safety needs, the ongoing cost of in-home care becomes the primary consideration.

Key costs of aging in place at home:

• In-home care services
  The cost of long-term care at home is escalating at a pretty shocking rate, though. According to the 2023 Genworth Cost of Care Survey the year-over-year increase in the median national hourly rate for a home health aide is 10%, rising from $30 per hour in 2022 to $33 per hour in 2024. Broken down, that’s a monthly rate of $24,024 for a full-time (168 hours) home health aide, $8,008 for 8 hours a day for 7 days a week, or $4,004 for 4 hours a day for 7 days per week. Keep in mind that the cost of long-term care is in addition to all the other costs of living at home such as mortgage, insurance, utilities, groceries, cleaning, entertainment, maintenance and repairs, etc.
• Home maintenance
  Older adults living at home may need assistance with home maintenance tasks, which can add to costs. Lawn care, cleaning, and repair services might collectively range from $100 to $500 or more monthly.
• Utilities and living expenses
  Aging in place still requires budgeting for typical household expenses like utilities, groceries, and property taxes, which can easily total $1,000 to $2,000 monthly, depending on the home’s size and location.

Independent living with caregiver support

An attractive alternative to aging in place at home and hiring at-home care is life in an independent living community. Independent living communities cater to older adults who can manage their daily activities but prefer the convenience of a communal environment. These communities often provide amenities such as housekeeping, dining options, and social activities. While they do not typically include medical care, residents can hire private caregivers for additional support.

Seniors who are able to live independently in most regards are excellent candidates for independent living and hiring a caregiver.

Looking at the cost of long-term care in senior living, it’s easy to see the savings that can be realized. The national median monthly cost of long-term care in senior living is $5,350 (up just 1.36% year-over-year), and that includes 24/7/365 care that is always available, nourishing meals, fun and engaging activities, services like cleaning, laundry, transportation to appointments, and a range of wellness, fitness, social, and apothecary services like those in independent living.

Key costs of independent living:

• Monthly rent or fees
  Independent living communities charge monthly fees that typically include housing and amenities. These fees range from $2,000 to $5,000 or more, depending on the location, apartment size, and amenities offered.
• Supplemental caregiver costs
  If a resident requires part-time caregiving, such as help with bathing, medication reminders, or light housekeeping, this can add $1,000 to $2,800 per month for 10 to 20 hours of care weekly, based on national averages.
• Meals, housekeeping, and activities
  Some independent living communities offer meals, housekeeping, and optional activities and excursions at an additional cost. These services and amenities can average $500 to $1,000 monthly.

Weighing the costs and benefits

Advantages of aging in place at home

• Emotional comfort of familiar surroundings.
• Personalized care tailored to individual preferences.
• Potential cost savings if extensive care is not needed.

Advantages of independent living with caregiver support

• Access to a community of peers and social engagement.
• Simplified living with included amenities like meals and housekeeping.
• Freedom to scale caregiving hours based on changing needs.

Making the right choice

Ultimately, the choice between aging at home and moving to an independent living community depends on personal preferences, the senior’s health and mobility, and the family’s financial situation. Aging at home may be more cost-effective for seniors requiring minimal care and home modifications. Conversely, independent living communities offer a streamlined approach to housing and social engagement, with the flexibility to add caregiving support as needed.

Evaluating both options thoroughly and consulting with financial advisors or eldercare specialists can ensure that seniors and their families make well-informed, sustainable decisions.

For more information about exceptional independent living at  One Lincoln Park, contact us and schedule a tour.