A new study shows a wide divergence in costs for those seeking assisted-living services.
"Assisted living communities are residential homes for seniors that offer extra help with day to day tasks like meals, transportation, laundry, and medication management (but stop short of providing medical care," Seniorly.com said in a new report. "Additionally, these communities offer a community of people in a similar life stage that can provide friendship and companionship, a huge benefit that’s not to be overlooked."
According to Seniorly.com, the average monthly rent at assisted living communities across the country was $4,057 per month, requiring an average of 9.5 years in savings. But in some states, it can take much, much more longer to bankroll the cost depending on taxes, cost of living and public policy.
"A record 54 million Americans are 65 and older and with the holidays coming up, many families might start to think about whether their beloved seniors should consider moving into an assisted living community," Seniorly said.
To calculate the average savings needed to afford one year of assisted living in each of the 50 states and the District of Columbia, Seniorly analyzed its platform users’ move-in data through the first half of 2021 across the company’s network of 40,000 senior communities; the median wage in each state, reported by the most recent U.S. Census Bureau data; the national average savings rate of 7.5%, reported by the U.S. Bureau of Economic Analysis; and the average cost of assisted living facilities in every state.
Here, in ascending order, are 2021’s top 10 most expensive states for assisted living.
10. Maine
Maine adopted its first state sales tax in 1951 and its first state income tax in 1969, adding to the cost of assisted living. During the first half of 2021, the average monthly price of assisted living in Maine cost $4,711 and required an average of 13 years of savings to afford for one year.
9. Connecticut
From home prices to gas prices, being a resident of the Nutmeg State comes with a high price tag, especially if you’re a senior living in a high-end assisted living facilities. During the first half of 2021, the average monthly price of assisted living in Connecticut cost $4,726 and required an average of 9.6 years of savings to afford for one year.
8. Washington
On January 1 the state begins collecting a 7% capital gains tax on long-term capital gains in excess of $250,000, which could hamper some people's ability to afford assisted-living services. During the first half of 2021, the average monthly price of assisted living in Washington cost $4,995 and required an average of 10.8 years of savings to afford for one year.
7. Hawaii
During the first half of 2021, the average monthly price of assisted living in Hawaii cost $5,063 and required an average of 10 years of savings to afford for one year.
6. Delaware
Delaware has some of the lowest taxes in the country, and some of its most expensive assisted living facilities. During the first half of 2021, the average monthly price of assisted living in Delaware cost $5,286 and required an average of 12.4 years of savings to afford for one year.
5. Washington, D.C.
During the first half of 2021, the average monthly price of assisted living in Washington, D.C., cost $5,369 and required an average of 9.9 years of savings to afford for one year.
4. Massachusetts
If you’re a senior diagnosed with Alzheimer’s or memory loss, you’ll pay 20% to 30% more for assisted living in one of the country’s most expensive states to live. During the second half of 2021, the average monthly price of assisted living in Massachusetts cost $5,421 and required an average of 10.7 years of savings to afford for one year.
3. Alaska
There are more aging baby boomers looking for affordable assisted living in Alaska than the supply available to meet demand. During the second half of 2021, the average monthly price of assisted living in Alaska cost $5,514 and required an average of 11.4 years of savings to afford for one year.
2. New Hampshire
During the second half of 2021, the average monthly price of assisted living in New Hampshire cost $5,644 and required an average of 11.8 years of savings to afford for one year.
1. New Jersey
New Jersey is one of the nation's wealthiest states, and it shows in the cost of assisted-living services. During the first half of 2021, the average monthly price of assisted living in New Jersey cost $5,893 and required an average of 11.4 years of savings to afford for one year.
The full report can be viewed here.