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There are more than 800,000 Americans residing in assisted living. Out of this population, more than half of all residents have high blood pressure and 40% are living with Alzheimer’s Disease or other dementias. While assisted living communities are extremely helpful for seniors to proceed with and enjoy their everyday lives, it is also true that living in these communities come with a certain price tag. Social Security Pay Assisted Living
For this reason, most seniors look for low-income senior housing options or pay for assisted living by utilizing different resources and incomes – and one of these is Social Security.
Social Security and Assisted Living
At age 62, seniors can start receiving their monthly benefit through Social Security. And when they reach the full retirement age of 66 or 67, their benefits will be higher. The average monthly Social Security payment in 2020 is $1,503, which comes to $18,036 annually.
Of course, Social Security benefits vary based on one’s earnings in work from which Social Security taxes are paid. Simply put, retirees who earned more money while working and worked longer get more Social Security benefits. And as mentioned, Social Security is a common source of seniors for Assisted Living or for facilities that provide help for activities for daily living (ADLs).
Can Social Security Cover Assisted Living?
Unfortunately for our beloved seniors, Social Security cannot typically pay for all the costs of assisted living.
In the United States, the cost of assisted living is more than what they receive from Social Security. In Genworth’s 2020 Cost of Care survey, they reported that the average monthly cost of assisted living is $4,300 or $51,600 per year. Meanwhile, the average Social Security benefit was at $1,543 per month, as of January 2021. This reveals a difference of $2,757 per month.
This means that most retirees will need to supplement the cost of assisted living, whether it’s from income from a pension, a 401(k), or other investments or savings. Location matters, though. The cost of residing in an assisted living facility varies in different areas of the United States.
Resources to Consider for Assisted Living:
1. Social Security Disability Insurance (SSDI)
SSDI is available for people who are not able to work because of their medical condition that is expected to last at least one year. The benefit you can receive, however, depends on the age when your disabilities arose and the number of years you were able to work before your disabilities developed. While the amount varies from person to person, the average is between $800 to $1,800 per month.
Similar to Social Security benefits, the person receiving this has the freedom to use the funds, as they see fit. One popular option for seniors receiving this funds is to use it for assisted living costs.
2. Supplemental Security Income (SSI)
SSI is a federal benefit for individuals who have limited income and assets. Specifically, it is a needs-based program where applicants must be: at least 65 years old, blind, or with disabilities, with low income, and with low assets. The average amount an individual receives from SSI is $700.
This is sent directly to the recipient who has the freedom to spend it with no restrictions.
3. Optional State Supplements (OSS)
Some states have Optional State Supplements readily available to help pay room and board in assisted living facilities for qualified low-income individuals. This benefit is in addition to the normal Social Security benefits a senior could receive. OSS benefits could range from $100 to $1,000, depending on the applicant’s income.
Unlike the other state resources, all OSS payments are sent directly to assisted living facilities or other senior care options. This can only be placed on facilities that accept Medicaid, and can only be tied on room and board
Here is Your Best Option
The best place for seniors is a community that could offer exceptional care and a nurturing environment, without sacrificing financial security and freedom.
BestPlace4Seniors has a wide network of senior homes and assisted living facilities. We are capable of providing you with the best choice that is suited to fit your loved one’s needs, preferences, and of course, financial capacity.
If you are interested in finding the best low-income senior housing options for you or for your loved ones, consult BestPlace4Seniors today!
