While no one plans to join a nursing home in retirement, it can happen to anyone—and it frequently does. Mobility issues, disabilities, and chronic conditions can affect anyone, especially older adults. Factoring in nursing home costs into your retirement savings can be a smart strategy. You will be financially prepared if you need to pay nursing home monthly fees, and you’ll have extra funds if you don’t end up needing to. Nursing homes are known for being costly, but they may actually help save retirees money; they cover medical care, food, housing, social events, home maintenance, and daily assistance. While the average cost of a nursing home is usually around $7,000-$10,000 per month, there may be some hidden costs that most people don’t consider.
Room Privacy
If you don’t mind having a roommate, you can save money on your monthly nursing home fees. The more private your room is, the more you need to pay. Typically, nursing home rooms are considered private or semi-private (shared). In a private room, you have the entire room to yourself. Only community areas are shared, and you’ll only receive visits from your care providers, family members, or friends. Semi-private rooms are shared with another community patient, and you can have a curtain separating you if desired. While most people prefer entirely private rooms, it can be unaffordable. If you’re certain you want a private room, expect to pay the top dollar for it.
Stay Duration
In the long run, you can save money on fees with long-term stays. Short-term stays may cost extra, as you won’t be able to use long-term financial plans or contract savings. If you only need a nursing home for temporary reasons like surgery recovery, expect to pay slightly more per day, week, or month than someone who is permanently residing in the nursing home.
Legal Fees
Not all nursing homes are created equal. While most are dedicated to quality care, understaffing and overcrowding can contribute to patient mistreatment. Neglect or abuse can cost victims a lot of money in medical treatment and legal fees if pursuing litigation. Not many retirees account for legal costs like these when saving for retirement. Choosing a high-rated community may cost more, but it can save you a lot of trauma and financial troubles in the long run. While issues like overcrowding, neglect, or understaffing can happen anywhere in any community, some areas have more widespread concerns due to high populations of older adults or a lack of skilled nurses in the area.
Oakland, California
Oakland makes up a large portion of the infamous Bay Area’s eastern section. While it’s considered generally safe in most areas, its high population can affect the quality of medical facilities, including nursing homes. To avoid having the need to hire a Oakland lawyer for nursing home abuse, you’ll want to make sure the community you choose isn’t overcrowded or understaffed.
Tampa, Florida
Tampa is an affordable west coast Florida city that offers a mix of serene natural beauty and senior-friendly amenities. Its proximity to South Florida and larger cities like Orlando makes it one of the most desirable retirement destinations in the entire state. Due to the large population of older adults, there has been an increase in nursing home abuse citations and fines for sanitation and staffing concerns. If you’re retiring to Florida, you can avoid costs from legal battles by ensuring you stay in a highly rated nursing home.
Scottsdale, Arizona
Arizona is another warm state where retirees enjoy year-round sunshine and desert landscapes. Scottsdale is one of the more popular cities for those who love arts, architecture, and plenty of things to do. A few nursing homes in the area have come under fire for increasing nursing home abuse and poor quality conditions. Thoroughly vet the community options here—there are plenty of high-rated ones to choose from.
Skilled Nursing
While all nursing homes include most medical care and treatment, if you need a specially skilled nurse, you’re going to have to pay for that tailored medical care. Nursing homes include skilled caregivers, but specialized treatment or care can cost extra. Some nurses have additional accreditation in fields like oncology or psychiatry. It can be difficult for nursing homes to secure these specialized staff, so the cost can come out of your pocket.
Popular Communities
A highly popular community with high demand will typically charge more per month than a community looking to fill more rooms. Check official Medicare ratings for communities; if a highly rated community doesn’t have a waiting list, you may find some cost savings.
Specialized Food
Most, if not all, nursing homes include meals for their patients. However, specially prepared food may cost the nursing home extra. These costs can come out of your monthly expenses. If you have unique dietary needs that require special preparation, ask the community about their policies regarding costs.
Rate Increases
You may find a nursing home at a great rate, but that doesn’t mean you’ve locked it in for good. It’s fairly common for nursing homes to raise their rates when in high demand. It’s good to factor in inflation and rising monthly rates in your savings plans. Rate increases can become more likely in times of economic hardship or high inflation (like right now).
Conclusion
If you’re worried about not saving enough for a potential nursing home stay in retirement, don’t. Information is the first tool you need for a smart retirement finance strategy. Think about the many factors that play into nursing home costs and try to save a little extra to account for them. If you know you’ll have certain preferences, like a private room, it’s important to prepare for these costs with the most informed savings plan.
Interlinking Opportunities
From (https://www.savingadvice.com/articles/2023/03/13/10109486_can-i-retire-at-60-with-500k.html) with the anchor hidden costs of retirement homes
From (https://www.savingadvice.com/articles/2024/08/08/10147095_we-did-the-work-for-you-top-8-retirement-planning-worksheets.html) with the anchor hidden retirement costs
Comments