Will social security pay for assisted living? Here's what to know

While your Social Security benefits can be used to help pay for assisted living, the average monthly payment in 2025 is not enough to cover the full median cost of care. This guide explores how Social Security benefits work in relation to assisted living and what other financial options can bridge the gap.

Quick Summary

Social Security benefits are paid directly to the recipient and can be applied toward assisted living expenses, though they rarely cover the entire cost due to the high monthly fees. Options like Supplemental Security Income (SSI) and state-specific programs may offer additional financial aid, often combined with other resources like savings, Medicaid, and long-term care insurance to cover the full expense.

Key Points

• Limited Coverage: Social Security benefits can be used for assisted living but will not cover the full cost due to the high monthly fees.

• Supplemental Programs: Supplemental Security Income (SSI) is for those with limited income and resources and can be combined with Medicaid for broader coverage of care services.

• Medicaid Waivers: While Medicaid doesn't cover room and board in assisted living, state Home and Community-Based Services (HCBS) waivers can cover personal care and other supportive services for eligible individuals.

• Alternative Funding: Other funding sources like Veterans benefits (Aid and Attendance), long-term care insurance, personal savings, and leveraging home equity are typically necessary to cover remaining costs.

• Planning is Key: Early financial planning is critical, as government programs often have waitlists and strict eligibility requirements, and private insurance can be easier to obtain when healthier.

• Direct Payment: Social Security benefits are paid directly to the recipient, giving them control over how the funds are used for their care and living expenses.

Using Social Security for assisted living expenses

For many seniors, Social Security benefits provide a crucial, reliable source of monthly income. When it comes to assisted living, these benefits can be used to help cover costs, but it's important to understand the details. The payments are sent directly to the beneficiary, who can then use them at their discretion, including for assisted living fees. However, relying solely on these payments is often not a viable solution.

How different types of Social Security benefits apply

There are several types of Social Security benefits, and they all function similarly in relation to paying for assisted living:

• Social Security Retirement: These benefits are based on your lifetime earnings and are a regular source of income. For 2025, the estimated average monthly benefit for retired workers is around $1,979, which covers a small fraction of the median assisted living cost.
• Social Security Disability Insurance (SSDI): Provided to those who are unable to work due to a long-term disability, these benefits can also be used for assisted living expenses. When an SSDI recipient reaches full retirement age, the benefit typically converts to a Social Security retirement benefit.
• Supplemental Security Income (SSI): This needs-based program is for individuals with limited income and resources who are 65 or older, or disabled. The average SSI payment is significantly lower than the average retirement benefit. However, individuals receiving SSI often also qualify for Medicaid, which can provide more substantial coverage for care services.
• Optional State Supplements (OSS): Some states provide additional payments to SSI recipients to help cover the costs of assisted living. These payments vary by state, and in some cases, the funds are paid directly to the facility rather than the individual.

The gap between Social Security and assisted living costs

Assisted living is expensive, and the average Social Security check simply doesn't cover the full expense. The median monthly cost for assisted living in the U.S. was $5,190 in 2025. For comparison, the estimated average Social Security retirement benefit for 2025 was approximately $1,979. This leaves a substantial monthly shortfall that must be covered by other means.

Other avenues for financing assisted living

Because Social Security is not enough, most families must combine several financial strategies to afford assisted living. These include:

• Medicaid and Waivers: Medicaid is the primary public payer for long-term care for low-income individuals. While it typically does not cover the room and board portion of assisted living, many states offer Home and Community-Based Services (HCBS) waivers. These waivers can cover the cost of personal care and other supportive services within an assisted living facility, making the overall cost more manageable. Eligibility is based on strict income and asset limits.
• Veterans Benefits: The U.S. Department of Veterans Affairs (VA) offers benefits, such as the Aid and Attendance program, to eligible veterans and their surviving spouses. These can provide significant monthly funds to help pay for assisted living costs.
• Long-Term Care (LTC) Insurance: Private long-term care insurance policies are specifically designed to cover the costs of assisted living, home care, and nursing home care. The coverage and benefits vary widely by policy, but for those who planned ahead, it can be a vital resource.
• Personal Savings and Investments: Using savings, pension payments, or other retirement accounts (like 401(k)s and IRAs) is a common way to pay for assisted living. For many, this is the main source of covering the financial gap.
• Home Equity: The equity in a person's home can be a significant asset. Options include selling the home, taking out a reverse mortgage, or using a Home Equity Line of Credit (HELOC) to generate funds for care.
• Life Insurance: Some life insurance policies can be used to pay for assisted living. This can be done through a life settlement, an accelerated death benefit, or by taking a loan against the policy's cash value.

A comparison of paying for assisted living

Funding Source	Covers Room & Board?	Covers Care Services?	Eligibility Requirements	Notes
Social Security (Retirement/SSDI)	Yes (indirectly)	Yes (indirectly)	Based on work history/disability	Not typically enough to cover full cost.
Supplemental Security Income (SSI)	Yes (indirectly)	Yes (indirectly)	Low-income and asset limits	Often paired with Medicaid for more aid.
Medicaid	No	Yes (via waivers)	Low-income and strict asset limits	Coverage varies significantly by state.
Veterans Benefits (e.g., Aid & Attendance)	Yes (indirectly)	Yes (indirectly)	Based on service, health, finances	Provides monthly pension payments.
Long-Term Care Insurance	Yes	Yes	Private policy purchase, health-dependent	Benefits depend on the specific policy.
Personal Funds & Savings	Yes	Yes	No specific eligibility	Funds can be quickly depleted.

Planning for assisted living costs

It is vital to plan ahead for the financial reality of senior care. Waiting until the need for care is imminent can limit your options, especially for programs with waitlists or stringent application processes. Start by assessing your current financial situation, including your monthly income from all sources and all available assets.

Where to find help

Navigating the options for financing assisted living can be overwhelming. Fortunately, there are resources available to help:

1. Local Area Agency on Aging (AAA): The Eldercare Locator, a public service of the U.S. Administration on Aging, can help you find your local AAA, which offers personalized advice on local, state, and federal programs.
2. Certified Elder Law Attorney: These legal professionals specialize in the needs of seniors, including long-term care planning, estate planning, and Medicaid eligibility.
3. Financial Planners: A financial planner with experience in elder care can help you assess your assets and create a long-term care strategy.
4. Assisted Living Advisors: Services like A Place for Mom provide free consultations to help families understand their options and find affordable communities.

What to ask when touring facilities

When you visit prospective assisted living facilities, be sure to ask crucial questions about payment. Ask for an itemized price list that details what is included and what costs extra. Inquire if they accept Medicaid or if they work with specific state waiver programs. Additionally, ask about their pricing structure (tiered, all-inclusive, or a la carte) and if they have experience with veterans' benefits.

Making an informed decision

Ultimately, a combination of resources is often required to fund assisted living. While your Social Security income is a valuable piece of the puzzle, it is rarely the complete solution. Understanding your eligibility for programs like Medicaid waivers, exploring veterans' benefits, and considering private options like long-term care insurance and home equity are essential steps. By planning early and consulting with experts, you can create a comprehensive financial strategy that ensures quality care for yourself or your loved one.

For more detailed information on government benefits and assistance, consult the official Social Security Administration website: https://www.ssa.gov.

Frequently Asked Questions

Will Social Security checks be sent directly to the assisted living facility?

No, federal Social Security payments are made directly to the recipient, who then chooses how to use the funds. In some states that offer Optional State Supplements (OSS) for SSI recipients, the state may send payments directly to the facility.

How much of assisted living will my average Social Security check cover?

The average Social Security check for a retired worker in 2025 is estimated to be approximately $1,979 per month. This amount covers only a portion of the median monthly assisted living cost, which was $5,190 in 2025. Therefore, you will need other resources to cover the significant difference.

Does Medicare pay for assisted living?

No, Medicare does not cover the costs of assisted living, as it is considered custodial rather than medically necessary. Medicare covers short-term stays in skilled nursing facilities and certain medical services, but not the long-term room and board or personal care provided in assisted living.

Can I qualify for both Social Security and Supplemental Security Income (SSI)?

Yes, it is possible to receive both Social Security retirement benefits and SSI, especially if your retirement benefit is low. SSI is a needs-based program for those with limited income and assets, and receiving one benefit does not automatically disqualify you from the other.

What is the difference between Social Security and Supplemental Security Income (SSI)?

Social Security is an earned benefit based on your work history and contributions. SSI, on the other hand, is a needs-based federal program that provides monthly payments to seniors and people with disabilities who have very limited income and resources, regardless of their work history.

Are assisted living facilities required to accept Social Security as payment?

No, assisted living facilities are not required to accept Social Security or SSI as payment. Since the payments are made to the resident, facilities treat it like any other personal income. Some facilities may have agreements with state-level Optional State Supplement (OSS) programs, but this varies.

What if my loved one can't manage their Social Security payments?

If a senior is unable to manage their finances, they can designate a representative payee to handle their Social Security benefits. This person, who is approved by the Social Security Administration, manages the funds on their behalf to pay for basic needs like food, shelter, and medical care.