How Much Does Senior Living Really Cost?

Moving to a senior living community is an opportunity to enjoy more support and connection in a place where you can thrive. Of course, this transition is also a financial decision—a wise investment in your overall well-being and peace of mind.

As you look to the future and consider making this investment, a good first step is to research what goes into senior living costs. Understanding these details will help you effectively plan ahead and make the choice that fits your long-term goals. 

In this guide, we'll discuss:

• Senior Living Costs and Care Options
• Factors That Influence Senior Living Costs
• Comparing Senior Living Costs vs. Your Current Residence
• How to Pay for Senior Living
• Financial Tools and Tips for Planning Ahead
• Looking to the Future

Senior Living Costs and Care Options 

The average monthly cost of senior living will depend on a number of factors—amenities, location, the type of care you desire, and more—but here’s a general breakdown of each level of care and its price. 

Independent Living

Independent living is designed for active, healthy adults over the age of 55 who want to enjoy dynamic social opportunities, convenient access to amenities that enhance their overall well-being, and low-maintenance living. This type of community includes a wealth of benefits that improve your day-to-day life, but it doesn’t include any type of assistance with personal care or activities of daily living (ADLs) such as bathing, dressing, or medication management. 

The price of independent living will vary, but the national median monthly cost is $3,065.

Assisted Living

This option is ideal for older adults who enjoy all of the amenities, social activities, and low-maintenance benefits available in independent living but who also would like more assistance with day-to-day tasks and ADLs. Assisted living provides wellness programs, individual care plans, team members who are available 24/7 to lend a hand, and more. 

The average monthly cost of assisted living is $4,500.

Memory Care

Memory care is a specialized type of environment for older adults with cognitive impairments such as Alzheimer’s or another type of dementia. Staffed by specially trained team members, it provides a safe environment, therapeutic programs, and structured daily routines to create a sense of comfort and familiarity for residents. 

The average monthly cost of memory care is $6,160. 

Senior Living Payment Models

The way a senior living community structures its costs can be just as important as the monthly price itself. Different payment models include:

• All-inclusive model: All-inclusive communities charge a single monthly rate that covers most services. 
• Level-of-care model: You pay a base monthly rate plus tiered costs, depending on your care needs. The price will increase as your care needs evolve. 
• A la carte model: You pay a base monthly rent and then pay additional cost for each care service you use. This may be a good option if you’re very independent, but the costs can escalate quickly if your care needs change. 

Factors That Influence Senior Living Costs

Each resident in a senior living community is unique, so senior living costs aren’t one-size-fits-all. Although national cost averages provide a helpful reference point, what you’ll actually pay depends on a combination of personal choices, care needs, and the community itself. 

1. Level of Care

The most impactful cost factor is the amount of care you need. Generally, the greater the level of care, the higher your costs are likely to be. 

2. Location

Senior living communities in urban centers or popular retirement destinations often have higher monthly rates. Choosing a community with nearby hospitals and other essential services may also increase the overall price.

3. Residence Size and Type

Senior living residences can come in a variety of options, from townhomes and cottages to studio apartments and suites. Depending on which you choose, the cost will vary. Upgrades such as a balcony or patio, garage, and high-end finishes (e.g., granite countertops and deluxe appliances) can also impact cost.

4. The Community Itself

A newer community may charge higher monthly costs that reflect modern design, updated safety features, and the costs of recent construction. Established communities, on the other hand, can offer lower pricing. 

5. On-Site Amenities and Resources

While amenities enhance the quality of life at a senior living community, they can also influence costs. The more amenities available—for instance, spa services, a concierge desk, valent and private transportation options, personal trainers, rooftop terraces, and more—the higher the monthly cost may be. 

Comparing Senior Living Costs vs. Your Current Residence

When you first research senior living costs, you may feel some sticker shock. Look closer, and you’ll discover it provides more overall value than maintaining your current residence and lifestyle on your own. 

A Streamlined Monthly Budget

Instead of paying separately for a variety of basic expenses at home, senior living helps streamline your finances by combining the following expenses into a single payment:

• Mortgage/rent and property taxes
• Utility bills, such as gas and water
• Groceries and dining
• Transportation and fuel
• Home maintenance, such as roof repairs, lawn care, snow shoveling, and so on

Benefits That Go Beyond

Beyond financial convenience, a senior living community provides access to a wide range of amenities and support that make your daily life safer and more enjoyable, such as: 

• Housekeeping and laundry
• Social and recreational programs
• On-site wellness resources and well-being checks
• Security and emergency response
• Helping hands when you need them, depending on the care level you choose

That being said, some aspects of senior living aren’t included in the monthly cost and will need to be paid out of pocket. Access to these additional resources and amenities is available through trusted community partners who are located on-site for added convenience.

The Home Care Factor

Aging in place in your current home may seem less expensive at first glance, but costs can add up quickly if your care needs change. 

According to The Wall Street Journal, the hourly price of in-home care jumped from $20 in 2015 to $33 in 2023. The median yearly cost of around-the-clock home-based care is around $290,000, almost four times the median annual cost of assisted living. In addition, modifying your home to make it safe and accessible—installing wheelchair ramps, bathroom safety features, and more—can significantly increase housing costs. 

How to Pay for Senior Living

When considering ways to pay for the move to a senior living community, you may discover more options than expected. A combination of personal savings, insurance, benefits, and assets can make the transition more feasible. 

Out of Pocket

Many older adults begin by using a mix of personal savings, pensions, Social Security, and retirement investments. Although this is the most straightforward method, be sure to track expenses and plan ahead to ensure long-term sustainability. 

Insurance

Depending on the type of insurance you have, certain policies may offset senior living costs, including:

• Long-term care insurance (LTCI): LTCI is designed to defray the costs of assisted living and memory care. If you have an LTCI policy, carefully review which services are covered because policies vary widely, and premiums rise and eligibility declines with age.
• Third-party insurance: Although most supplemental third-party health insurance policies don’t pay for senior living room and board, some may cover certain aspects of care, such as nursing services or physical therapy.
• Life insurance conversion: If you maintain a life insurance policy that you no longer need, you may be able to convert it into a long-term care benefit account. 

Veterans Benefits

Eligible veterans and their spouses may qualify for VA Aid and Attendance, a monthly benefit that helps cover the costs of assisted living and other types of care. Consider reaching out to an accredited VA Benefits advisor for help during the application process. 

Home and Real Estate Equity

For many older adults, their house is their largest asset. Selling a home or other property can provide significant funds to pay for senior living. 

Medicare

Medicare does not cover the cost of a senior living community. However, it may help cover some short-term medical services within a community, such as rehabilitation after a hospital stay. 

Financial Tools and Tips for Planning Ahead

Understanding senior living costs is the first step, but successful planning means utilizing the right guidance during the journey. Consider these key steps:

• Use the right tools: To start, try a senior living cost calculator to receive a personalized comparison of your general costs. 
• Consult professionals early: Reach out to a certified financial planner and elder law attorney. These professionals can help you maximize your benefits and protect your estate while also keeping your financial ship steady. 
• Plan for potentially rising care needs: Your health and care needs may change over time, so consider ways to plan and budget for those possibilities now. Explore communities that offer a continuum of care, which makes it simpler to transition between care levels without the disruption of moving to a new location. 

Looking to the Future

Preparing for the move to senior living is about more than just comparing costs. It’s about preparing for a future that offers connection, helps maintain your well-being, and provides peace of mind for you and your family members. 

For even more information about senior living options and the associated costs, check out our Senior Living Pricing Resources. 

This post was originally published in May 2023 and updated in August 2025.