Social security is the safety net that we all have, and it is the bare minimum that a lot of us require surviving in our most desperate times of need.
A lot of people in the US rely on social security for good reasons, and one of the most dependent groups are retirees.
The problem is that once you reach the age of retirement, and you need to use social security to give you an income for all your years of hard labor, they don’t really tell what it can be used for or what expenses it covers.
This is especially necessary at this age, as it is the time when the body begins to experience issues and hospital visits become not only necessary but the norm.
For some people, daily life can become difficult, and so they are either encouraged by close relatives to enter assisted living facilities or that they wish to go themselves.
However, if you are living on social security it may become a worry to do so, as it is not clear-cut whether social security will cover the expense of living in these facilities.
In this article, we seek to shed light on this topic and let you know whether social security covers assisted living expenses.
What Is Social Security?
It is a program designed to provide financial support to those who need help during their later years.
Social Security was established in 1935 by President Franklin D. Roosevelt. It has been modified many times since then to meet the demands of the country and its citizens.
In 1939, the first monthly benefit was paid out, and it became a part of the Federal budget.
The federal government provides benefits through two different programs: Social Security and Medicare.
Social Security provides benefits to workers who pay into the system from their earnings, while Medicare provides benefits to individuals who are over 65 and younger people with disabilities.
How Does Social Security Work?
You must earn money and pay tax to receive payments under Social Security. You must pay both payroll taxes (FICA) and income tax in order to receive any benefits.
There are three types of taxes that contribute towards Social Security. They include: Income Tax, FICA Taxes, and Medicare Taxes.
You can get Social Security benefits at any age once you have reached 62 years old.
Benefits begin at $1,200 per month and increase with inflation. If you are younger than full retirement age, you can still draw benefits, but not to the full extent as retirees.
Who Receives Social Security Benefits?
If you are employed, you can draw Social Security benefits. If you are self-employed, you cannot draw benefits without paying into the system first.
If you are retired, you can draw Social security benefits if you have paid into them through taxes prior to your retirement.
Once you retire, you no longer have to pay into the system.
Your benefits are based on your adjusted gross income plus other factors like whether you received military service.
What Are The Costs Involved?
There are several ways to calculate how much you will receive in benefits. One way of calculating is to take the average salary of each year up until the year you were born.
Then multiply that number by the amount of years you worked before retirement.
That figure would be divided by the average annual wage growth rate between the beginning of the year and the date of retirement.
Another method involves looking at your highest earning year of employment.
Divide that number by the average annual wage after retirement. This is known as the “full retirement” method of calculation.
Your final option is to use the “average earnings” method.
Under this method, you divide your total income in the highest earning year by the average yearly income for the last 10 years. This is also known as the midpoint rule.
Most people choose the average earnings method because it is simpler. Using this method, you simply add up all your income and divide it by the number of years you worked.
Then divide the result by the average annual wage for the last 10 years preceding retirement.
Does Social Security Cover Assisted Living?
The answer to this question depends on what type of assistance you require. If you are planning to live independently, there are few things that may interfere with your ability to do so.
These include medical conditions such as Alzheimer’s disease, stroke, dementia and Parkinson’s disease.
If you need more assistance, the Social Security Administration offers services called “Assisted Living”. Some of these services include nursing care, meals and housekeeping.
For example, if you need help remembering to put on clothes, you could hire an aide to assist you.
If you need someone to cook for you, you can hire a home health aide.
In some cases, you can even apply for Medicaid coverage. Medicaid pays for nursing homes.
However, there are limits on how long you can stay in a nursing home. You must be able to care for yourself. The same is true of a hospital.
You should check out Medicare coverage. It covers most healthcare needs. Unfortunately, it does not cover assisted living.
The problem is that even with a lot of assistance from local or federal governments, it will still be hard for you to pay for the cost of an assisted living facility.
Most of these facilities cost upwards of $4000 per month, which is not feasible even for those with a relatively high paying job.
Can You Get Assisted Living Cheaper?
Yes, you can! There are many options when it comes to finding low-cost assisted living facilities. One option is to look online.
Many companies offer discounts to seniors who qualify for government programs. For example, senior citizens who meet certain criteria can receive free rent through Section 8 housing.
Other companies have special rates for seniors. They might offer a discount for seniors who don’t have any pets.
Or they might offer special deals for seniors who don’t smoke. By searching online, you could find a deal right away.
Another option is to ask around. Ask friends and family members about their experiences in assisted living facilities.
Asking them directly might provide you with better information than calling up a website.
Finally, there are organizations like AARP that specialize in helping people find cheap assisted living facilities.
They often partner with other organizations to give seniors information about different types of affordable housing.
Conclusion
Assisted living is incredibly expensive and unfortunately social security will probably not cover it.
However, there are things you can do to make yourself comfortable in your later years and if you can get help from families, friends, or organizations, you may just find yourself able to afford the costs.