Assisted living can provide a cozy and encouraging setting for seniors who require assistance with everyday tasks but yet wish to be independent. To make sure you or a loved one gets the care they require without breaking the bank, you should be aware of the many financing alternatives available.
We’ll walk you through a few helpful tips and strategies for properly and successfully financing assisted living below.
Evaluate your financial situation.
Any major financial endeavor always starts with an assessment of your present financial status. Examine your monthly income, savings, investments, and any additional sources of financing that you may have.
It’s time to look at your monthly spending after you’ve documented all of your monthly income. To get a full picture of your present financial status, including your bills, rent or mortgage, and any debts.
To make sure that you or a loved one gets the care you need, you must have a well-thought-out financial strategy for paying for assisted living.
Examine the associated costs.
The location, degree of care required, and particular amenities provided by the facility are just a few of the variables that can greatly affect the cost of assisted living.
Start by looking into assisted living facilities in your region, like Verve Senior Living, to get a sense of the price range. The expenses of assisted living often cover lodging and board, food, help with household duties, and a host of additional facilities and services.
To choose an assisted living community that meets the needs and budget of you or a loved one, you should take a tour of several.
To have a comprehensive understanding of the costs related to assisted living in your preferred community, don’t forget to enquire about their pricing structure, what’s included in the monthly fee, and any additional charges for certain services.
Examine potential benefits
After evaluating your financial situation, if you’re worried that you won’t be able to pay for assisted living, you could look into other financing options and possible benefits. Numerous federal and provincial initiatives aim to mitigate the financial strain that comes with this significant life change.
Here are a few such benefit initiatives to look into:
Security for Old Age (OAS)
All seniors in Canada are eligible for the Old Age Security (OAS), which pays monthly benefits to those who meet certain requirements after age 65. One further great feature of this benefit is that it frequently provides automatic enrollment, which eliminates the need for additional application work.
However, you can apply manually on the Government of Canada website if your payments do not start immediately the month following you turn 65.
Supplementary Income Guaranteed (GIS)
For those over 65, the GIS is a non-taxable monthly payment that serves as a “supplemental” source of income in addition to their existing income, rather than taking the place of some of it.
In order to apply for this benefit, older people must fulfill the following requirements:
- Have reached the age of 65 or older
- They presently live in Canada.
- They have applied for and been granted access to the Old Age Security (OAS) program.
- Because of their marital status when they applied, their current income is below the yearly GIS level.
Pension Plan for Canada (CPP)
After retirement, people can apply for the taxable monthly payment known as the Canadian Pension Plan. This plan is based on the wages a person made while they were employed as well as the amount they contributed to their CPP. Moreover, the compensation granted will vary based on the age at when the plan participant began using it.
For the rest of their life, those who qualify for the CPP will continue to receive benefits.
In order to apply for this benefit, older people must fulfill the following requirements:
- Must have made at least one lifetime contribution to the CPP
- Are sixty years of age or older?
- Apply for the CPP by going to Canada.ca and using the application there.
Speak with an expert
After looking over your expenses and prices, if you’re still not completely satisfied with the strategy you’ve put out, it’s probably time to get expert advice.
Consulting with financial planners, elder care lawyers, and other professionals can yield important information and help you make the most out of your financial strategy. They may provide you advice on asset protection and tax techniques so that you or a loved one can maximize the value of their hard-earned money.
