According to the American Health Care Association/National Center for Assisted Living, over 800,000 Americans reside in assisted living. Getting into this type of care can be of immense help, as you’re in an enriching environment where you’re surrounded by support, activities, and social interactions.
However, assisted living costs in Ridgeland, MS, can add up, and you may be worried about your senior care expenses in the future. So before you need these services, you should tackle financial planning for aging. That way, you can have peace of mind.
In this article, we’ll present several ways of paying for assisted living you can consider.
Personal Savings and Private Funds
Many seniors and their families rely on personal savings, retirement funds, and other private resources to cover the costs of assisted living. For example, you may have liquid assets from personal or joint savings with your partner, such as certificates of deposit (CDs) and money market accounts. Or you can sell or liquidate stocks, bonds, or other investment accounts.
There’s also the following in regards to retirement funds:
- Pensions
- 401(k)s
- IRAs
If you have a pension from a former employer, then you can use it to help pay for assisted living expenses. Some plans may even provide additional assistance or benefits specifically for long-term care. Do note that withdrawals may be subject to taxes and penalties, depending on your age and account type.
Social Security Benefits
Social Security can be a great source of steady income, but realistically, it’s often not enough to fully cover assisted living costs. As of 2025, the monthly disbursements can range between $1,226 to $7,391, so it’s very likely that your assisted living costs will exceed your payments.
Of course, if your Social Security income is insufficient, you can combine it with other financial resources, such as the one we talk about in this article. You can also get Supplemental Security Income (SSI) if you’re low-income.
Long-Term Care Insurance (LTCI)
LTCI is designed to cover assisted living, nursing home care, and in-home care. However, you must purchase your insurance plan years in advance before you plan on using it. The premiums increase with age and health conditions, so the sooner you get a policy, the better.
The policies differ in coverage, waiting periods, and benefit caps. In addition, some older policies only cover skilled nursing care and not assisted living. So if you already have a policy, check the benefit triggers and other fine print to understand exactly what’s covered and when it’ll start paying out.
Veterans Benefits
Are you a veteran? Then, your benefits may extend past retirement and help with long-term care options.
The Aid & Attendance (A&A) benefit from the Department of Veterans Affairs (VA) helps eligible veterans or their surviving spouses pay for assisted living.
You’re eligible if you get a VA pension and meet at least one of the following requirements:
- You require assistance with daily activities
- You have to stay in bed because of an illness
- You’re in a nursing home due to the loss of mental or physical abilities resulting from a disability
- Your eyesight is limited
You may also qualify for housebound benefits through the VA. However, you can only get one or the other benefit, not both simultaneously. The VA has information on these benefits if you’re interested in learning more.
Medicare
Medicare only offers limited assistance, so you should definitely combine it with other financial options. It doesn’t cover room and board for assisted living, although it can help you with:
- Short-term skilled nursing
- Doctor visits
- Medications
- Medical equipment
- Home health care for medical conditions
Life Insurance Conversions
If you have a life insurance policy, then you may be able to convert it into cash to use for assisted living expenses.
The first choice is a life settlement. You can sell your policy to a third party for a lump sum, which is usually 50-75% of the death benefit.
You can try accelerated death benefits (ADB) too. This allows you to access a portion of the benefit before you pass away if you’re facing a serious illness.
Lastly, there are viatical settlements for those who have a terminal illness. You’ll get early access to your funds.
Reverse Mortgages
Homeowners who are 62 or older can utilize a reverse mortgage to borrow against home equity. There are some caveats, though.
You and/or your spouse must continue living in the property. And if the house is vacated or sold, then you have to repay the loan.
Despite these drawbacks, reverse mortgages are great for couples if only one person needs to move to assisted living.
Rental Income From a Home
If you own a home but aren’t ready to sell, nor do you want to take out a reverse mortgage, you can generate monthly income to cover your assisted living costs by renting it out.
Being a landlord can be tiring though, so consider hiring a property manager. They can handle tenants while ensuring you receive a steady rental income still.
Family Contributions and Crowdfunding
Retirement living affordability can still be out of your reach, even with the above choices. In that case, you should try asking for family contributions. Your siblings or adult children are more than likely to contribute to your monthly costs.
Those who don’t have family to ask or don’t feel comfortable doing so can use crowdfunding platforms instead. Compassionate strangers may help raise money for quality care.
Don’t Struggle When Paying for Assisted Living
Paying for assisted living can be difficult, especially in today’s economy. However, through careful financial planning and leveraging multiple funding sources, you can make it happen.
The key is to start saving early and to be as financially stable as possible. It may be in your best interest to work with a financial planner or elder law attorney to create a strategy that maximizes all potential resources.
If you’re still able-bodied and need minimal assistance, then independent living may be a better option for you. Get in touch with us today to hear more about independent living services in Ridgeland. We at Summerhouse Beau Ridge have exclusive lifestyle programs to keep our residents engaged and entertained.
