After more than 20 years of helping families navigate their senior living journeys, we know that cost is often one of the biggest questions people have when exploring their options. Planning for senior living is an important financial decision, and understanding how it works can help families feel more confident and prepared.
We believe in open and honest conversations about cost. Our goal is to help families understand their options and identify every available resource so they can make the best decision for their future.
Below are answers to some of the most frequently asked questions about paying for senior living.
What Are My Options for Paying for Senior Living?
Most families use a combination of financial resources to cover the cost of senior living. These may include:
- Retirement income
- Social Security benefits
- Personal savings
- Investment accounts
- Proceeds from selling a home
- Annuities
- Long-term care insurance
- Life insurance policies
- Veterans benefits
Every family's situation is unique, which is why our team at Commonwealth Senior Living works closely with residents and their loved ones to explore all available options and help create a plan that fits their needs.
What Happens If Funds Run Out?
One of the most common questions we hear from families is: "What happens if our funds run out?"
Our goal is always to support residents throughout their senior living journey. If financial circumstances change, our team works closely with families to explore every available option and resource that may help extend their resources. In situations where a transition becomes necessary, we remain committed to helping families navigate the next steps and providing guidance throughout the process.
Families can also use tools like a "How Long Will My Money Last?" calculator to estimate how long their savings may support senior living expenses based on their financial situation.
What's the Difference Between Medicare and Medicaid?
These two programs are often confused, but they serve very different purposes.
Medicaid
Medicaid is a state and federally funded program designed for individuals with limited income and assets. Eligibility requirements vary by state. In most cases, Medicaid covers long-term care in skilled nursing facilities, typically in shared-room settings.
Medicare
Medicare is a federal health insurance program available to most adults age 65 and older. While it covers many medical services, it does not cover long-term residential senior living, such as Assisted Living or Memory Care.
However, Medicare may cover short-term rehabilitation in a skilled nursing facility for up to 20 days following a qualifying hospital stay of at least three days. You can explore more resources about Medicare here.
How much does senior living cost per month?
Monthly costs vary depending on several factors, including:
- The community location
- The size and style of the suite
- The level of care needed
- Individual health needs
In general, monthly rates for senior living communities typically range between $4,000 and $6,000, depending on the type of care and services provided. Our team can help families review pricing and determine the best option based on their individual needs.
How Much Do Rates Increase Each Year?
Across the senior living industry, the national average annual rate increase is typically 5-7%.
At Commonwealth Senior Living, annual increases have traditionally averaged between 3-5%, depending on market conditions, geographic location, and operational costs. These adjustments help ensure communities can continue providing high-quality care, enriching Signature Programs, and meaningful experiences for residents.
Are Senior Living Expenses Tax Deductible?
In many cases, portions of Assisted Living and Memory Care expenses may be tax deductible, particularly when related to medical care.
Because every financial situation is different, we recommend speaking with a qualified tax professional to determine what deductions may apply.
Is There a Long-Term Contract?
No. Commonwealth Senior Living offers month-to-month residency agreements, allowing residents the flexibility to stay as long as they wish.
If circumstances change, residents may choose to move with 30 days' notice, providing peace of mind for families who value flexibility.
What Is a Community Fee?
A community fee is a one-time, non-refundable fee paid when a resident moves into a community. This fee is standard throughout the senior living industry and typically ranges from a few thousand dollars to approximately one month's rent.
At Commonwealth Senior Living, a portion of the community fee is used to restore and refresh the resident's suite after move-out so it is ready for the next resident. The remaining portion helps support community-wide enhancements, including Signature Programs, amenities, and shared spaces that residents enjoy every day.
What is Our Promise to Veterans and who qualifies?
At Commonwealth Senior Living, we proudly honor Veterans with Our Promise to Veterans. Guided by the principle, "You served us, now it's our turn to serve you," we provide financial and personal support beyond standard benefits. We help Veterans and their spouses coordinate and cover moving expenses up to $2,000 and continue to recognize their service with ongoing celebrations with stars displayed outside of the doors of our honored Veteran residents, pinning ceremonies and patriotic celebrations throughout the year, and military honors and flag presentations. As part of this Signature Program, Veterans also receive ½ off during their one-year anniversary month. This ensures Veterans feel deeply valued, supported, and celebrated from the very start of their senior living journey.
How Long Does Aid & Attendance Take?
The VA Aid & Attendance benefit can help eligible Veterans and their spouses offset the cost of senior living care.
Applying independently can take up to a year, as applications are processed in the order they are received and may require additional documentation.
When families work with Commonwealth Senior Living and our partner, ElderLife Financial Services, the process is typically completed much faster, often within 30 to 45 days. Once approved, benefits can be retroactively applied to the date of move-in, allowing families to recoup eligible expenses.
Click the link below to try our online cost calculator to compare the cost of living at home with the cost of moving into a senior living community near you.
Pricing is an important part of planning your next chapter. If you'd like help reviewing your cost calculator results or have questions about paying for senior living, our team is here to help.
Connect with a community near you to get personalized guidance and answers.
Families often use a combination of financial resources when paying for senior living. These may include retirement income, Social Security benefits, personal savings, investment accounts, proceeds from selling a home, annuities, and long-term care insurance. Some families may also use life insurance policies or Veterans benefits to help offset costs. Because every financial situation is different, many families work with senior living professionals to explore all available options and create a plan that best fits their needs.