Image Source: Pexels
When you move into a retirement home, you may expect upfront costs like a deposit or other application fees. But what about hidden monthly costs that you weren’t expecting? When you’re looking for a retirement home, it’s important to read the contract and ask questions about hidden fees because these can quickly make an affordable retirement home out of your budget.
1. Additional Care Costs
Image Source: Pexels
What happens if you get sick or injured and need additional care? Most retirement homes will charge for medical assistance like medication management, social services, or therapies. You may even incur a leave of absence fee if you have to leave the nursing home and stay at a hospital. This is essentially a bed hold fee while you are gone. It’s important to ask your retirement home management how they define care and what will incur an additional cost.
2. Cost Increases
Most retirement homes will only increase costs once a year. You’ll also probably receive an estimate for next month’s bill on your current bill for the month. Additionally, if you are paying privately for the retirement home some states will include a state assessment fee that is passed on to the resident. It’s a good idea to ask how the facility handles cost increases before moving in.
3. Additional Services
Image Source: Pexels
Something as simple as getting your laundry done at your retirement home can incur additional charges. Some retirement homes include this service in their base monthly cost and others charge a la carte or when special laundry services are needed, like daily sheet changes. Ask your nursing home how they handle laundry so you won’t be surprised by additional charges on your bill. Also, if you plan on using other services at your retirement home like hairdressing services, this is usually an additional charge.
4. Special Events and Transportation Services
Participating in some events and transportation to places like the grocery store, appointments, or the mall aren’t included in regular room and board. Make sure you understand if you have to pay an additional fee before participating in classes, parties, or outings. Small charges like this can add up quickly.
5. Utilities and Cable
Do you know if utilities and cable are included in your monthly cost? While most nursing homes cover the costs of electricity, air conditioning, and heat, you probably will be charged for cable TV and a phone in your room. These are seen as luxuries that are typically not included in base monthly costs.
Choosing a Retirement Home that Doesn’t Wreck Your Budget
According to Genworth Financial, the average monthly cost of assisted living in the United States is around $5,511, which translates to roughly $66,000 per year. This can be a huge expense with not much wiggle room for unexpected expenses. To stay on budget, remember that every retirement home operates differently. The more questions you ask before you move in, the better prepared you’ll be for additional expenses. What questions do you have about retirement home expenses? Let us know how we can help in the comments.
Read More
Retirement Savings 101: The Hidden Costs of Nursing Homes
Social Security’s Full Retirement Age is Going Up
GIPHY App Key not set. Please check settings