Many seniors keep the prospect of long-term care in the back of their mind preferring to cross that bridge when they come to it. As a result, the cost of long-term care can be a real eye-opener when the need suddenly arises. Rather than wait and suffer sticker shock, prepare now by understanding the cost of long-term care at home versus in senior living.
The cost of long-term care at home
Choosing to age-in-place at home works well for many seniors who are healthy and active but when care is needed, the cost of long-term care at home can quickly tilt the scales. After an illness or injury, many seniors depend on the family to provide care, which can put a serious strain on everyone involved. Ultimately, many seek outside help and that’s where the cost of long-term care hits home. Although the costs of long-term care vary from state to state they can quickly overwhelm the finances of even those who have planned ahead.
According to the 2023 Genworth Cost of Care Survey, since 2004 the national hourly cost of a home health aide has risen from approximately $42,000 to more than $75,000, with the national hourly median cost for a home health aide in 2023 at $33 a year-over-year increase of 10.00%. Of course, the cost is also dependent upon the number of hours needed so at 44 hours per week the monthly median cost of a home health aide is $6,292 or $207 per day. When a senior requires round-the-clock care the national monthly median cost shoots up to $24,024, which breaks down to $790 per day.
The important aspect to keep in mind is that seniors who receive long-term care at home must also continue to make all the payments associated with living at home in addition to the cost of a caregiver. These include mortgage and insurance, utilities, groceries, maintenance and repair, and fees for cable and internet services. For those who also need help with housekeeping, the hourly national median cost in 2023 was $30 per hour, up 7.14% year-over-year.
In addition to paying for the cost of long-term care, there’s the problem of finding qualified and reliable help. The shortage of health care workers that began during the COVID-19 pandemic continues, and according to a report by Mercer titled, “Future of the U.S. Healthcare Industry: Labor Market Projections by 2028,” the shortage of nursing assistants is expected to become severe by 2028. Also keep in mind that, according to the U.S. Census Bureau, by 2030 all baby boomers will be age 65 or older, creating a “gray tsunami,” which is likely to far outstrip the supply of home health care providers.
The cost of long-term care in senior living
It’s a common misperception that the cost of long-term care in senior living always exceeds the cost of in-home care. In reality, long-term care in assisted living may be comparable to and even less than the cost of long-term care at home.
The Genworth Cost of Care Survey found the national median monthly cost of assisted living is $5,350 or $176 per day, which provides round-the-clock care in a private apartment, as well as nutritious meals and snacks, fun and engaging activities and events, onsite hair salons and barber shops, housekeeping and laundry services, onsite therapy, transportation, utilities/cable/internet, and maintenance. Best of all it’s all included in one monthly fee. Also very important to note is that the cost of assisted living increased just 1.36% year-over year which is considerably less than the increase in the cost of long-term care at home.
Senior living also provides socialization which is key to good health and happiness in retirement. As noted in our blog, “Aging with Grace: How a Strong Social Life Protects Health & Wellness of Seniors” loneliness and isolation are at the root of increased risk for a variety of physical and mental health problems among seniors. Residents of senior living communities like The Timbers on Blackwell Creek, however, experience a higher quality of life thanks to the engaging and active environment where it’s easy to make friends and reap the benefits of strong social ties. Take a more in-depth look at how great life can be in senior living in our blog, “Amenities Count: Comfort and Convenience in Today’s Senior Living Communities.”
Before letting the cost of long-term care become worrisome, get the facts about how to pay for senior living in our helpful “Funding Guide.” To speak to a professional and schedule a tour contact us today.
