1. Home
  2.  | 
  3. Estate Planning
  4.  | Do you have enough money set aside for a nursing home?

Do you have enough money set aside for a nursing home?

On Behalf of | Mar 9, 2022 | Estate Planning

Aging in place is a goal for many people planning their retirements. Rather than going to live in an impersonal and expensive nursing home, they like to stay in their own home and remain independent.

Some people even move into smaller retirement homes after their children move out or when they start planning for their golden years in their late 50s or 60s. While you may have every intention of staying in the same home where you have lived after your retirement, there’s no guarantee that you will be able to do that.

If your health declines, you may need to move into a nursing home despite your wishes. Will you have enough money to cover nursing home costs? 

Medicare won’t pay for your nursing home stay

Insurance likely isn’t going to cover the cost of your time in a nursing home. Medicare, the insurance program for retired adults, specifically excludes extended rehabilitation services and nursing support. You will either need to save money yourself or qualify for Medicaid to pay for your monthly nursing home costs.

Currently, the average cost for a private room in Georgia is $7,150, and a semi-private room will cost $6,700 on average each month. If you need to qualify for Medicaid, you will need to plan well ahead of time, as the state can go back over several years of your financial records to look for transfers or gifts and will penalize you for any inappropriate or questionable transfers.

Advance long-term care planning helps ensure that you have the resources you need as you age, even if you hope never to use them.