Does social security pay for assisted living? All the details

This year, it’s estimated that $1.6 trillion in social security benefits will end up in the bank accounts of individuals across the country to supplement their income and support them during retirement. Wondering if seniors can use that money to pay for assisted living? The short answer is yes, but just how much it will cover is another story.

“The cost of assisted living communities has steadily increased over the past decade and is only projected to continue to increase,” says Kimberly A. Hegwood, owner and managing elder law attorney at Your Legacy Legal Care. In fact, by 2034 the average monthly cost for assisted living is predicted to jump to nearly $8,000 per month from the current $5,900. This is why understanding just how much seniors can rely on social security income to afford assisted living is crucial.

Here, experts break down how social security benefits can pay for assisted living, plus offer important tips for seniors on social security for affording long-term care in the long run.

Does social security pay for assisted living?

Simply put, social security can contribute to the cost of assisted living, but there is no formal system that pays assisted living facilities directly with social security benefits, explains Moti Gamburd, chief executive officer of CARE Homecare, a Los Angeles-based in-home care provider. “The monthly payment is typically sent directly to the beneficiary, who then uses it however they need, including paying the assisted living facility,” Gamburd says.

“Most families we work with rely on a mix of social security, pensions, home equity, long-term care insurance and financial support from adult children.”

— Moti Gamburd, senior care expert

In turn, it’s up to seniors and their families to manage assisted living payments each month, and there are three common options for how to pay, explains New Jersey-based elder law attorney Naomi Becker Collier: 

• Privately.
• Using long-term care insurance.
• With Medicaid.

“In any of these instances, all or part of your social security may be applied to pay for your care,” says Collier who is also co-chair of the Trusts & Estates and Elder Law & Special Needs Planning practices at Pashman Stein Walder Hayden. “However, most people do not receive enough social security that it would cover the cost of long-term care so they are forced to use their other assets to pay for their care in addition.”

With this in mind, there is rarely a single solution when it comes to paying for assisted living. “Most families we work with rely on a mix of social security, pensions, home equity, long-term care insurance and financial support from adult children,” Gamburd says. “Some also use life insurance conversions or reverse mortgages.”

How social security benefits pay for assisted living costs

While any social security income can be used to pay for assisted living, different types of benefits will play different roles when it comes to supplementing costs. In general, there are three main types of federal social security benefits seniors use for long-term care:

• Retirement benefits.
• Social Security Disability Insurance (SSDI).
• Supplemental Security Income (SSI).

Here’s a closer look at how social security benefits compare when it comes to payments:

Social Security Benefit	Who Qualifies	How It’s Determined	Average monthly payment*
Retirement benefits	Individuals 65 years and older.	Based on earnings history.	$1,948
Social Security Disability Insurance (SSDI)	Adults under retirement age who are unable to work due to a disability.	Based on the determination of qualifying disability.	$1,440
Supplemental Security Income (SSI)	Individuals under retirement age or 65 years and older.	Based on income and asset limits, not work history.	$718

Advice on how to afford assisted living on social security

So which social security benefits offer the greatest support for assisted living costs? Retirement benefits are the most commonly used for assisted living because they are the most widely available, according to Hegwood. “Retirement benefits also tend to offer the highest monthly income, depending on the individual’s work history, of course,” Hegwood says. 

“Many families don’t realize they qualify for extra support or could structure their finances differently to access help.”

— Moti Gamburd

SSI, on the other hand, is not used as often for assisted living since it typically can’t cover the costs of retiring in an assisted living community, Hegwood notes. However, if you qualify for SSI, there are other potential benefits you may qualify for which are important to consider.

First, Gamburd suggests looking into local Medicaid waiver programs which often work alongside SSI. “Many families don’t realize they qualify for extra support or could structure their finances differently to access help,” he says. “And if assisted living isn’t affordable, in-home care might be a more manageable option while still offering high-quality support.”

Second, many states provide extra benefits in addition to the federal SSI payments that can offer support. These state-funded payments are called optional state supplements (OSS). There are only six states that do not offer any OSS: Arizona, Arkansas, Tennessee, Mississippi, West Virginia and North Dakota. Meanwhile, others may offer OSS benefits that do not apply to assisted living costs.

Curious what your state offers in terms of supplement to SSI for long-term care costs? Here’s what to know, plus links to state-specific pages detailing benefits to check out for more details:

State-by-State OSS offerings

State	Optional State Supplement Benefit Amount
Alabama	State supplement does not cover assisted living.
Alaska	$30/month.
Arizona	No state supplement for SSI recipients.
Arkansas	No state supplement for SSI recipients.
California	Up to $630/month.
Colorado	Up to $1,005/month based on income.
Connecticut	Benefits vary based on age and health status.
Delaware	Benefits vary based on level of care needed.
Florida	$807.40/month for room and board only.
Georgia	State supplement does not cover assisted living.
Hawaii	$1,751-$1,859/month. Dependent on size of facility.
Idaho	Cash assistance based on need.
Illinois	Benefits vary based on income and expenses.
Indiana	Benefits vary based on income and expenses.
Iowa	Up to $37.60 per diem for facility cost, plus $126/month for personal needs.
Kansas	Benefits vary based on Medicaid coverage.
Kentucky	Up to $1,583/month minus countable income.
Louisiana	$1-$8/month for personal needs.
Maine	Benefits vary based on income and facility cost.
Maryland	Up to $1,056/month.
Massachusetts	Up to $454/month.
Michigan	$87-$179/month.
Minnesota	Benefits vary based on income.
Mississippi	No state supplement for SSI recipients.
Missouri	Up to $292/month.
Montana	Up to $94/ month.
Nebraska	Cash assistance available to those who don’t qualify for Medicaid. Benefits vary based on need.
Nevada	$354/month.
New Hampshire	Cash assistance available depending on needs and income.
New Jersey	$188/month.
New Mexico	Up to $100/month.
New York	$435-$694/month based on level of care and location.
North Carolina	Benefits vary based on income.
North Dakota	No state supplement for SSI recipients.
Ohio	Up to $1,800/month based on facility type.
Oklahoma	Benefits vary based on income.
Oregon	Cash assistance options only for specific individual needs. Amounts vary.
Pennsylvania	Up to $430/month.
Rhode Island	Up to $332/month.
South Carolina	Benefits vary based on income.
South Dakota	State supplement does not cover assisted living.
Tennessee	No state supplement for SSI recipients.
Texas	Benefits vary based on facility.
Utah	State supplement does not cover assisted living.
Vermont	Up to $224/month.
Virginia	Benefits vary based on location.
Washington	State supplement does not cover assisted living.
West Virginia	No state supplement for SSI recipients.
Wisconsin	Up to $95.99/month.
Wyoming	State supplement does not cover assisted living.
Washington DC	$678-$788/month. Dependent on facility size.

A final tip on using social security to pay for assisted living

Social security can be used to pay assisted living costs, but the key takeaway is that relying on social security benefits alone is not sufficient, Hegwood emphasizes. “While these benefits can help cover these costs, incorporating them into a broader estate and long-term care plan is essential to cover gaps to protect the individual’s and their family’s financial future,” she says.

No matter your specific financial situation, the golden rule for determining how to afford assisted living on social security is to start planning early and working with an elder law attorney to create a sound financial plan catered to your specific goals and situation, Hegwood adds.