If you think the military guzzles a lot of cash, then you haven’t seen Social Security. It takes up at least 21% of the US Federal budget, or a whopping $1.4 trillion.
Social Security is a crucial form of retirement income for most, but it doesn’t pay for everything. The retiree has to be judicious about how they spend their Social Security income. Does Social Security pay for assisted living, for example?
Let’s take a look at assisted living costs and how they relate to your Social Security retirement income.
What Is Assisted Living?
Assisted living should not be mistaken for being in a nursing home. The former is when an elderly person receives both housekeeping and nursing care, without depriving them of independence. They mostly take care of themselves and live in an assisted living community.
This is not to be confused with other arrangements, either, such as having a live-in nurse. It’s a happy halfway point between living at home with assistance and living entirely dependent in a nursing home.
Does Social Security Pay for Assisted Living?
The answer is a short and easy one: yes. You can use your Social Security income to handle assisted living costs. As long as you’ve made your Social Security payments, you can put the full amount into assisted living.
However, the problem arises with the cost, not whether you can pay for it or not. Assisted living costs around $4,800 per month. Monthly income from Social Security, on the other hand, averages out at $1,700.
Now, to be fair, some people will receive enough to handle their assisted living expenses. The top end of Social Security recipients get about $4,800 per month, in line with assisted living costs.
2024 Social Security payment changes mean your income will be going up by at least $50 per month. This is to keep pace with inflation and cost of living. Although it’s not enough to make Social Security cover the entire cost of assisted living, it is a good step in the right direction.
Additional Expenses
It’s important to remember that assisted living costs aren’t your only expense. It does cover your room and board at the facility, and the care you receive.
If you have a medical emergency, though, such as requiring emergency treatment or surgery, that will come separately. There will likely be other costs you’re responsible for beyond your assisted living center. For this reason, some may not choose to use all of their income for their care.
Are There Alternatives?
Some individuals may qualify for SSDI (Social Security Disability Insurance). Though normally for disability-related expenses, one can use them to take care of assisted living costs.
Paying for assisted living entirely, again, won’t be sufficient with SSDI. It’s far less than the typical Social Security payment, at about $1,200 per month on average.
Prepare for Your Retirement Today
Does Social Security pay for assisted living? It does; however, in most cases, people don’t receive enough to pay off their entire assisted living expense. It will depend on how much you receive in Social Security, and whether or not you receive SSDI benefits besides.
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