Assisted Living Cost Planning
Using Social Security for Assisted Living
Social Security typically covers only 35–75% of assisted living costs depending on your state. Here's what the real numbers look like — and the strategies families use to bridge the gap.
$4,800/mo
national average assisted living cost (2025)
$1,907/mo
average Social Security retirement benefit
~40%
of AL cost covered by average SS benefit
Assisted living costs vs. Social Security by state
How much of average assisted living cost does average Social Security ($1,907/mo) cover in each state? The gap is what you need to cover from other sources.
| State | Avg AL cost/month | SS covers | Monthly gap |
|---|---|---|---|
| Missouri | $2,400/mo | 79% | ~$500/mo |
| Arkansas | $2,550/mo | 75% | ~$650/mo |
| Georgia | $2,700/mo | 71% | ~$800/mo |
| Alabama | $2,700/mo | 71% | ~$800/mo |
| Texas | $3,900/mo | 49% | ~$2,000/mo |
| Florida | $4,000/mo | 48% | ~$2,100/mo |
| California | $5,250/mo | 36% | ~$3,350/mo |
| New York | $5,500/mo | 35% | ~$3,600/mo |
| Alaska | $7,650/mo | 25% | ~$5,750/mo |
Source: Genworth Cost of Care Survey 2024. SS figure = 2025 national average. Your SS amount and local AL costs may differ significantly.
5 ways to bridge the Social Security gap in assisted living
Medicaid HCBS waiver — covers the care portion
Medicaid Home and Community-Based Services waivers pay for personal care, nursing support, and other services in assisted living in most states. You typically still pay room and board ($1,500–$2,500/month) from Social Security. Waitlists exist in many states — apply early.
Medicaid Planning GuideVA Aid & Attendance — up to $2,300/month extra
Wartime-era veterans (and surviving spouses) who need help with daily activities qualify for VA Aid & Attendance pension. This $1,478–$2,727/month benefit (depending on status) is specifically designed to help cover care costs. Many eligible veterans don't claim it — contact your state Veterans Service Organization (VSO) for a free benefits check.
VA Benefits GuideLong-term care insurance — if purchased in advance
LTC policies pay $100–$400/day for qualifying care in licensed assisted living. The catch: you must purchase LTC insurance while still insurable (typically in your 50s–60s). If your parent has an existing policy, verify the benefit trigger requirements — most require inability to perform 2+ ADLs or cognitive impairment.
Home equity — sale or reverse mortgage
Selling the family home generates a lump sum that funds several years of assisted living. A HECM reverse mortgage provides monthly income but only works if the senior (or spouse) still lives in the home. Most families find that selling the home and moving to assisted living is the most straightforward approach.
Retirement accounts and savings
IRAs, 401(k)s, and investment accounts bridge the gap for most middle-income families until Medicaid eligibility is reached (if ever). Coordinating distributions with tax planning (Roth conversions, etc.) to minimize the impact on Medicaid income tests requires a coordinated approach with a financial advisor and elder law attorney.
Frequently asked questions
Can Social Security alone pay for assisted living?▾
Rarely — the average Social Security retirement benefit ($1,907/month in 2025) covers only about 40% of average assisted living costs ($4,800/month). However, assisted living costs vary greatly by state: in the lowest-cost states (Missouri, Arkansas, Alabama), costs average $2,500–$3,000/month, where Social Security covers 60–75%. In high-cost states (Alaska, New York, Connecticut), costs exceed $7,000/month. Most families combine Social Security with savings, Medicaid, VA benefits, or LTC insurance.
Does Medicaid pay for assisted living?▾
In most states, yes — but through specific programs. Medicaid Home and Community-Based Services (HCBS) waivers can cover the care services portion of assisted living in many states. However, Medicaid does not typically pay for room and board in assisted living. Residents must pay the room and board portion (often $1,500–$2,000/month) from their own income — including Social Security. Some states (like Oregon and Washington) have more generous Medicaid AL coverage.
What is the VA Aid & Attendance benefit and how much does it pay?▾
VA Aid & Attendance (A&A) is a pension enhancement for wartime-era veterans (and surviving spouses) who need help with daily activities. In 2025, a veteran alone receives up to $2,300/month; a veteran with a spouse receives up to $2,727/month; a surviving spouse receives up to $1,478/month. No combat service required — serving during a wartime era (WWII, Korea, Vietnam, Persian Gulf) is sufficient. Combined with Social Security, A&A can make assisted living very affordable.
What states have the most affordable assisted living for seniors on Social Security?▾
The most affordable states for assisted living (2024–2025 Genworth data): Missouri (~$2,400/mo), Arkansas (~$2,550/mo), Georgia (~$2,700/mo), Mississippi (~$2,550/mo), and Alabama (~$2,700/mo). In these states, a senior receiving average Social Security of $1,907/month needs to cover only $500–$800/month from other sources — far more manageable than the $3,000+ gap in high-cost states.
Can I use a reverse mortgage to help pay for assisted living?▾
A HECM (Home Equity Conversion Mortgage) reverse mortgage can provide monthly income to help pay for assisted living — but only while you live in the home. Once you permanently move to assisted living (defined as the home no longer being your primary residence for 12+ consecutive months), the reverse mortgage becomes due. For couples where one spouse remains in the home, a reverse mortgage may supplement the community spouse's income while the other receives care in assisted living.
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