The Costs of Assisted Living
Assisted living is a relatively new concept and is also known by various terms such as adult congregate living care, residential care, sheltered housing, adult foster care, enhanced care, adult living facilities, board and care, personal care, retirement residences, adult homes, community based retirement facilities, supported care, and domiciliary care. It should be pointed out that a substantial part of assisted living costs are normal living costs that you would incur if you stayed at home.
Assisted living is not for everyone, but it’s good to have the discussion early so that everyone will be on the same page when the time comes to make a decision about some different living arrangements.
Assisted living arrangements are usually preferred by older people who need 24-hour assistance in key activities, such as meal preparation, cooking, toileting, bathing and dressing, but do not require the intensive care that is provided in nursing homes. An important advantage for residents of these communities is that it is easier for them to meet other people and socialize, thus eliminating the possibility that they would feel bored. This is quite possible for those who are alone in their homes because it is more difficult to leave the home to visit friends.
It is important to deduct from the assisted living costs the usual living expenses that would be eliminated if you transferred to a retirement community. If the resulting value is still substantial, you will need to convert some of your assets into cash flow.
