One of the few constants in life is change. Another is the rising cost of health care. According to the Fidelity Retiree Health Care Cost Estimate, a single person aged 65 in 2023 may need approximately $157,500 saved (after tax) to cover health care expenses in retirement. An average retired couple age 65 in 2023 may need to save around $315,000. So, when it comes to your retirement, how do plan for unexpected changes and rising costs?
Life Care is one option that can help you plan for the costs of long-term care at more predictable monthly rates while providing you with a more engaging and active lifestyle.
Know What Medicare Covers
One way to cover future care costs is Medicare. Here’s a brief overview of what each one covers:
- Part A covers hospital costs after you meet a deductible.
- Part B is optional coverage for medical expenses and requires an annual premium. If you didn’t get Part B when you were first eligible, your monthly premium may go up 10% for each 12-month period you could’ve had Part B but didn’t sign up. Also, the penalty increases the longer you go without Part B coverage.
- Part D is for prescription drug coverage.
- Medicare Advantage plans are all-in-one managed care plans that provide the services covered under Part A and Part B of Medicare and may also cover other services that are not covered under Parts A and B, including Part D prescription drug coverage.
- Long-term care insurance (LTCI) is a private policy to help cover the costs of some types of health care not covered by Medicare. Like life insurance, the younger you are when you purchase LTCI, the less it will cost.
Benefits of Life Care
Life Care is a community contact option that accounts for the cost of future higher levels of care. All Life Care communities are also Life Plan Communities, but not all Life Plan Communities offer Life Care. Senior living contract options at Friendship Village include:
- The Traditional Plan: This option requires the least capital investment. If you ever decide to move from the community, a portion of your original entrance fee may be refunded, depending upon your length of residency. Under the Traditional Plan, there is no return of entrance fee to your estate.
- The Return of Capital™ Plan: This choice refunds 80% of your initial entrance fee to you or your estate, regardless of your length of residency at Friendship Village Tempe.
Add Predictability To An Unpredictable World
While no one has a reliable crystal ball to tell you what the future holds, with the right planning you can have more financial control of your budget. With Life Care, not only will you know in advance what your expenses will be month to month, but if you or your spouse needs a higher level of care, you’ll still pay about the same. The only added expense will be to cover the cost of additional meals.
Benefits of Life Plan Communities
Life Care Communities, also known as Continuing Care Retirement Communities (CCRC) offer an all-inclusive, maintenance-free and low-stress lifestyle. These communities are thoughtfully designed to provide maximum independence and a feeling of security, creating peace of mind for both residents and their families. At Friendship Village, we offer a variety of services and amenities, including:
- “Dining dollars” for expanded meal choices
- All utilities paid (cable and local phone included)
- Housekeeping and flat laundry service
- Indoor and outdoor maintenance
- Home and community landscaping
- Guarded community with 24/7 security
- Scheduled transportation
- Outings to community, social, cultural and sporting events
- Access to assisted living at the Nunnenkamp Center
- Access to skilled nursing and memory care at our state-of-the-art Health Care Center
- On-site nurse practitioner office through a partnership with Pine Park Health
- Multiple dining options, including an elegant restaurant-style dining room, buffet, casual bistro and our social hotspot, the Embers bar
- Spacious common areas
- Kelly Family Fitness Center — fully staffed with a swimming pool and hot tub
- A Recreation Center, complete with studios for pottery, ceramics, weaving, lapidary arts and a dance floor
- Woodworking shop
- Computer lab with training classes
- Three libraries
- Skirm Auditorium for performances and events
- On-site banking with ATM
- Theater Room
- Rooftop Gathering Community Room
Compare Monthly Costs
When considering the cost of staying in your current home, we think you’ll see that the cost of senior living is similar. Be sure to consider all your monthly expenses which may include:
- Rent or mortgage
- Property taxes and insurance
- Homeowner association fees
- Cable, internet and utilities
- House cleaning services
- Home maintenance and repairs
- Transportation (upkeep, insurance, gas, etc.)
As a homeowner, you’ll also have to plan for unexpected costs, like replacing broken appliances, repairing the sewer line or patching up a damaged roof. At a Life Plan Community, monthly costs are more predictable and manageable, so you won’t have unexpected expenses.
We’re Always Willing To Lend A Helpful And Friendly Hand
We’ve helped thousands of seniors find smart, practical plans that work for them today and tomorrow. If you have questions about contract types or want to talk about your options, give us a call or contact us here. We’d love to show you around our community and give you a feel for our lifestyle.