It’s expected that the price of goods and services increases as the years go by. It’s the reason why many workers have been expecting cost-of-living increases in their paychecks, and retirees expect a bump in their monthly Social Security payments. But one growing expense that people might not be thinking about and planning for is long-term care – which was already pricey. An overwhelming number of people significantly underestimate the cost of long-term care and experience quite the shock when they (or their loved ones) need it.
The Cost of Long-Term Care
Once you tally up the costs of potential long-term care, the number can be staggering.
The average cost of a private room in a nursing home was $9,034 per month in 2021 – that’s $108,408 per year. The average cost for assisted living was $4,500 per month or $54,000 per year.
Not only do those long-term care facilities come with a hefty price tag, but they also don’t guarantee care. Let’s say you spend three years in an assisted living facility and then your care needs change – now you’ll be forced to move out and find a nursing home to move into.
Not only is that inconvenient and stressful, but for many seniors, that can be really difficult to do after spending $162,000 in assisted living.
How a CCRC Can Save You Money & Stress Long-Term
All of these high-dollar figures and stipulations are among the reasons why some people decide to move to a continuing care retirement community (CCRC). While CCRCs can have a hefty entry fee, and contract terms can vary, the lifetime cost of care at a CCRC may end up being less than remaining in the home should care services be needed.
Here at Buena Vida Estates, we offer a “Type A” contract. This means residents are guaranteed care and services should they need it and will not be asked to leave should they deplete their financial assets due to things beyond their control (like high medical expenses).
So while there is an entry fee upfront, monthly costs are lower at CCRCs than other senior living options and you’ll have the peace of mind of knowing you’ll never have to leave.