Does Social Security Pay for Assisted Living?

Does Social Security Pay for Assisted Living?

Assisted living costs in the U.S. are well over $4,000 a month. Genworth’s median monthly national estimate for 2024 is $4,917.1 It’s possible that Social Security retirement income will come close to covering, at a minimum, monthly room and board in assisted living. But it’s unlikely to cover the total costs of assisted living, as care and other fees in these communities typically are above and beyond basic room rates.

Most workers in the U.S. pay Social Security taxes on the income they earn. Those taxes paid over your working years determine how much money you’re eligible to receive once you retire.

You can apply for Social Security retirement benefits anytime between the ages of 62 and 70. When you apply for Social Security benefits makes a big difference in how much money you’ll receive every month. For example, someone who applied for Social Security retirement benefits in 2024 at their full retirement age – 67 for anyone born in 1960 or later – is eligible to receive as much as $3,822 per month. Monthly benefits for people who wait until they turn 70 could be $4,873. Applying as soon as you can, at age 62, on the other hand, means you’d only receive $2,710 every month.2

In some circumstances, spouses might be eligible for a partner’s Social Security retirement benefits. Find details about when family members might be eligible for benefits here.

Note that you might have to pay federal income taxes on your Social Security benefits.3 If your combined income (meaning 50 percent of your benefit amount added to any other earned income) is over $25,000 a year (filing individually) or $32,000 a year filing jointly, you will need to pay taxes on your Social Security.

Also, keep in mind that if you sign up for Medicare Part B, the government will deduct Part B premiums from your total monthly benefits from Social Security, so the amount you receive will be a little lower.4 Medicare Part B covers many services important for your health care, such as doctors’ visits, preventive care, and some medical equipment. But paying for Part B will reduce the amount of money left over to help pay for assisted living.

Supplemental Security Income (SSI)

The Social Security Administration also runs a program called Supplemental Security Income (SSI), which provides monthly benefit payments to people with limited income and resources.

To be eligible for SSI, people must be:

• U.S. citizens or in the country legally
• At least 65 years old
• Of any age who are blind or otherwise disabled

SSI benefits are not based on having worked a certain amount of time and paying Social Security taxes, unlike Social Security retirement benefits. SSI is funded by other taxes, such as personal income tax and corporate taxes.

When you apply for SSI, the Social Security Administration (SSA) will assess whether your assets are worth more than $2,000. Your home and car won’t be counted toward this, but money in your bank account or investment portfolio will. Check with the SSA to confirm whether you can apply in person or need to schedule an in-person interview to apply.

Many states have an Optional State Supplementation (OSS) program for SSI recipients (see our state-by-state guide below) to help cover living expenses in their areas. In most states, people who receive SSI can also get help paying for medical expenses with Medicaid. They might also be eligible for food assistance programs or programs that help pay energy bills.

The maximum monthly SSI payment can change every year, but benefits increased in 2024. The current benefit amount is $943 for a single person and $1,415 for a couple. The amount a person or couple receives can vary, however. It might be less if you have other sources of income or more if you live in a state with a program that might give eligible people additional money on top of basic SSI payments. Be aware that different states have different rules or guidelines about how much income you can have and still be eligible for SSI payments. That can affect the amount you receive.5

Also remember that any changes to your income or living situation should be reported to the SSA to ensure you don’t lose or interrupt your benefits.

Do Social Security Disability Benefits Pay for Assisted Living?

Social Security Disability Insurance (SSDI) benefits are meant to help people with medical conditions that prevent them from working, along with their dependents. To receive disability benefits, applicants must have worked, generally, at least five of the last 10 years and paid Social Security taxes on their earnings.

Disability payments are sent directly to recipients. Although more people have qualified for SSDI in recent years, the SSA describes payments as modest and barely able to keep recipients living above the 2018 poverty level ($12,140 annually).6 In 2024, payments reflect a cost-of-living increase7 and average $1,537 per month.8 Check eligibility requirements and estimate how much you might be able to receive using the SSA’s federal disability payments guide.

Will SSDI cover the total cost of assisted living? Probably not. Average benefits are much lower than the national median cost of assisted living, for one thing. But qualifying as disabled within the parameters of this program is also difficult, which the SSA points out. Applicants for SSDI need to show that their disability prevents them from doing work they did in the past and also that they can’t do other types of work with the disability. The Social Security Act strictly defines “disability” as a situation in which someone hasn’t been able to work for at least a year due to a severe medical condition or that the disability will result in death. The SSA describes SSDI recipients as “severely impaired.”

Using Optional State Supplementation to Pay for Assisted Living

OSS refers to additional benefits many states offer SSI recipients to cover basic living costs. It can be complicated trying to figure out whether your state has an OSS program at all, what such a program might be called in your state, whether you’re eligible, and how much your monthly supplement might be if you qualify. State OSS benefits are typically modest and eligibility depends on income, your living situation, and other criteria. For example, some programs might only cover room and board in certain types of care homes, and not necessarily assisted living. So it’s a good idea to call the appropriate office or visit in person to get current information about these programs.

State supplements added to SSI payments from the federal government are unlikely to make much of a dent in paying for assisted living care, but every bit can help.

OSS: A State-by-State Breakdown

State OSS for SSI recipients might be administered by states, the federal Social Security Administration, or both.

Other Ways to Pay for Assisted Living

Many families pay for assisted living with a combination of financial resources, including savings, investments, insurance, and Social Security. Here are some other ways people might pay for assisted living.

Reverse Mortgage

A reverse mortgage is a tax-free home equity loan that allows you to receive cash against the value of your home while retaining ownership. The most common type of reverse mortgage is a Home Equity Conversion Mortgage (HECM), which is a program for homeowners ages 62 or older who own a home that’s their primary residence. This loan needs to be repaid once you move out of your home. The loan is subject to fees and interest rates as well. Families typically need to sell the home to repay this loan.

VA Aid and Attendance

Veterans who are homebound, have limited eyesight, or need assistance with ADLs might be eligible for Aid and Attendance benefits. These are additional funds added to veterans’ pensions to pay for long-term care. Learn more by visiting your regional VA office and your pension management center (PMC).

Medicaid

Medicaid might cover some aspects of assisted living, but benefits and eligibility requirements vary greatly by state. For example, some states offer the Program for All-Inclusive Care for the Elderly (PACE), a Medicare and Medicaid program that helps recipients live at home or in an assisted living facility instead of a nursing home. Eligibility requirements, such as the level of care needed for recipients to qualify for the program, vary by state so consult your state Medicaid office to learn more.

Assisted Living for Seniors on Social Security Near Me

If you’re looking for assisted living for yourself or a loved one, start by asking trusted friends, family, colleagues, members of your church or synagogue, and neighbors if they have any suggestions. Firsthand accounts are invaluable when gathering insights and advice about assisted living. People at your local senior center should be able to offer some assistance as well. You can check your local parks and recreation department website for information about senior centers nearby if you’re not familiar with one.

Once in-person resources are tapped, the internet is a useful tool for finding well-regarded assisted living communities in your town or city. Start by researching online neighborhood groups on Facebook, Nextdoor, or Reddit, and ask for recommendations. Also, read online reviews of assisted living communities on Google Maps and Yelp. You can visit the Administration of Community Living’s (ACL) Aging and Disability Resource Centers page to find local organizations across the country. Try searching the ACL’s Eldercare Locator tool to look for licensed assisted living facilities near you.

Lastly, try searching online for government guides to assisted living in your state. Many states provide resources to help you in your search, including, but not limited, to searchable databases to check facilities’ license status and inspection reports. Here are a few examples of state government resources for residents of Maryland, Indiana, and Missouri.