Hello, and welcome to Late Life Insights: A series of short, informational pieces on all things aging. I’m Dr. Lisa Rill, your friendly social gerontologist and Executive Director of Senior Life Source. Today’s topic focuses on the national average costs of living in different long-term care communities compared to the cost of in-home care.
Long-term care includes a variety of services for individuals who need assistance with activities of daily living, such as bathing, dressing, eating, transferring in and out of bed, and using the bathroom. With the current rate of our aging population, 7 out of 10 people will require long-term care at some point in their lives, and unfortunately it doesn’t come cheap.
The cost of care varies depending on your geographic location, the type of care setting you choose, and the level of care you require. Because the cost differs depending upon these variables, for the purpose of this informational piece, I will share with you the national averages of the different care options for nursing home care, assisted living, and in-home care in 2020.*
So let’s begin with the national median costs of nursing homes, which provides services for someone who needs high level or round-the-clock care. The monthly cost for a semi-private room is $7,756 and a private room is $8,821. This adds up to an annual cost of $93,075 for a semi-private room and $105,850 for a private room.
Next, let’s look at assisted living communities that cater to those who need lower levels of assistance with activities of daily living. In addition to providing 24-hour access to supportive care staff, they also offer their residents with a life plan, various services, and enrichment activities. The median monthly cost for assisted living is $4,300. This means the annual cost adds up to $51,600.
Finally, for those individuals attached to their homes and looking for services to help them stay there for as long as possible, the median hourly cost for in-home care homemaker services is $23.50. A home health aide is $24.00. Based on 40 hours of 8 hours of care/5 days a week, this adds up to a monthly cost of $4,074 for in-home care homemaker services and $4,160 for a home health aide. So with 40 hours a week, the annual cost for in-home care homemaker services totals $48,888 and a home health aide is $49,920. For round-the-clock care, the annual rate is over $200,000 for both, which is nearly double the cost of a nursing home. These rates will vary depending on how many hours per day/week/month you require.
If you aren’t already feeling sticker shock, know that these costs will only continue to increase. Just over the past year these prices jumped between 3% and 6%.
Some of you may be thinking, “I will just choose the cheapest option.” Well it’s not that simple. The level of care needs often dictate what care options are available. For instance, assisted living communities are not alternatives to nursing homes, because they mostly admit people with lower levels of care needs (although the lines between the two are becoming a bit more blurred). If you are interested in learning more about the differences between these options just discussed, check out my other informational piece that defines the different late life housing options.
Takeaway: Are you concerned about the costs of long-term care and wondering how you can be prepared to pay for these services? I suggest reaching out to a certified financial planner or a financial advisor. In this time of increasing life expectancies, they can help you build a financial plan that will not only go the distance and assist with maintaining your standard of living, but also provide a sense of purpose in retirement life. Be proactive and start now! Don’t wait until a potential crisis happens that could leave you stuck scrambling to make ends meet.
Thank you for joining me for Late Life Insights from Senior Life Source, where we provide education on aging for all ages.
Lisa Rill, PhD
Executive Director, Senior Life Source
*If you want to know more about how these averages compare to your geographic location, visit Genworth.com. This website is the source of information for this informational piece and will give you an opportunity to calculate the cost of care specifically in your area (looking at hourly, daily, monthly, and annual rates for today, and predicted costs in the future).
