Understanding in-home dementia care costs
In-home dementia care costs can vary based on factors like the level of care you receive, caregiver experience, and location. Adult day programs, memory care communities, and other services can also come with different price points. To budget effectively, it’s helpful to create a plan that accounts for both the lowest and highest potential costs and have an open conversation with your care circle about how they can help. With careful planning and support, you can confidently navigate your options.
Life after retirement is filled with possibilities. You can set your own schedule, finally try your hand at pickleball, or book that cruise around Europe.
While there’s plenty of adventures to be had, an important part of ensuring a secure and comfortable life in retirement is to plan for future expenses that may pop up along the way, including healthcare or even specialized support like in-home dementia care.
If you’re sitting there feeling overwhelmed or scared just by reading the word dementia, we get it. While not everyone will have a dementia diagnosis, it can be helpful to consider it as part of your wider plans for aging care.
By preparing for all types of care needs, you can approach the future with confidence and know you’re ready for whatever comes next.
How in-home dementia care can help you age in place
A dementia diagnosis doesn’t mean you have to move out of your home and into a dementia care community. While that’s certainly a good option for many people, you can sometimes get the care you need right at home.
While adults’ needs vary based on the severity of their health conditions (more on this later), aging in place — remaining in your home as you age — comes with a number of benefits.
For instance, aging in place can:
Provide a familiar environment – No matter your unique needs, you’ll likely always feel most comfortable at home. You know where all of your belongings are, and home maintenance routines (like taking out the garbage and locking the doors at night) are already second nature.
Support independence – Most older adults want to stay independent as they age: After all, by the time you reach retirement, you have ample experience with living on your own. While a condition like dementia can increase your dependence on care and support, aging in place can help you maintain a level of independence as your support needs change.
Average costs of in-home care
In-home care lets you get the care you need right in the comfort of your home. Costs can vary depending on your location and the level of care you need. Here are some of the national monthly median costs for in-home care in 2024, according to our Cost of Care survey:
Homemaker services: $6,292
Home health aide: $6,483
Factors affecting in-home dementia care costs
While planning your overall budget for dementia care, remember that costs can vary widely based on the following:
Caregiver experience level – Generally speaking, experience correlates to cost when it comes to professional caregiving. Professional caregivers with more experience typically charge higher rates than less experienced professionals.
Level of care – Your care needs will also typically correlate to the cost of in-home care. For instance, hiring a caregiver for a few hours each day to help you prepare meals, run errands, or attend doctor’s appointments will be less expensive than hiring full-time caregivers to stay in your home 24/7.
Location – The costs of older adult care are typically higher in areas with higher overall costs of living, such as coastal areas and large cities, for instance. In some cases, care in suburban or rural areas may be more affordable.1
Inflation and economic factors – Larger economic markers (like inflation and cost of living fluctuations) can impact the cost of older adult care.
How to budget for in-home dementia care
We know that looking at care costs can feel overwhelming. The numbers, the planning, the unknowns, it’s a lot to take in. But you're not alone. Our caregiving experts have gathered a few practical tips to help you create a budget for in-home dementia care, so you can feel more confident about the road ahead.
Establish a range for costs
When building a budget, you have to account for things like changing needs over the course of the aging journey, fluctuating costs related to economic factors, and potential moves from in-home care to residential care communities. That’s why we recommend establishing a range.
Your lowest number should represent the cost of the least amount of support: a few hours of in-home care by a non-health professional (like a homemaker) each day, for example. Your highest number should represent the cost of the most amount of support: full-time residence in a care-intensive memory care community, for instance.
While this will likely be a wide cost range, it still provides a general overview of how much you may spend on dementia care during your aging journey.
Account for cost increases over time
The range you establish at first will likely reflect current estimates for dementia care costs. Consider updating your range each year to reflect increased costs of living, updated care needs, inflation, and other factors.
We also recommend accounting for uncertainty while establishing your cost ranges. For instance, if your estimated range is $70,000 to $100,000 per year, consider adding “+/- 5%” to these figures in written budgets and savings plans.
Communicate with your care circle
As you create a budget, chat with your care circle, the family and friends who may be involved in your care. Most importantly, get a feel for the amount of time the people in your circle can devote to your care.
Consider whether or not people in your care circle can:
Address your medical needs: If you have a healthcare professional in your circle who wants to be a part of your journey, this may decrease some of your costs. However, if your care circle isn’t well-versed in healthcare, you may need to seek outside assistance.
Work on your schedule: If your care circle is mostly made up of young adults with children or demanding careers, they may not be able to provide 24/7 care. If, on the other hand, members of your care circle are planning to devote a large portion of each day to caring for you, this will also impact your budget.
Commit to your best interest: If you have dementia, you may struggle to make decisions about your health and living situation as your support needs increase. During the planning process, be sure to communicate your wishes to the people in your care circle who can best fulfill them.
Communicating your expectations and understanding your care circle’s abilities during the planning process will help you make a more accurate budget and a comprehensive plan for your aging journey.
Changing the aging journey for the better
In-home dementia care is not a one-size-fits-all solution, and that’s okay. Every individual’s needs and resources are unique. By taking the time to create a realistic budget, having honest conversations with your care circle, and considering future care options, you are empowering yourself to make the best decisions for your future.
The road ahead may be filled with unknowns, but with careful planning and the right resources, you can move forward with confidence and the support you deserve.
Search the CareScout Quality Network
When you need in-home care, make sure it’s quality by choosing a provider in the CareScout Quality Network.
Expert reviewed by
Beth Ludden
Beth Ludden is a Senior Vice President in CareScout’s long-term care insurance business. She has 30+ years working in insurance with a focus on long term-care planning solutions and public policy issues related to older population care needs.
Written by
Brian Dowd
Brian is writer based on Cape Cod. He is a passionate storyteller with a knack for finding the extraordinary in the ordinary. He joined CareScout as a Senior Content Writer in 2024. Before that, he worked as a content writer in the senior living industry and worked for several years as an assista...
