Senior living can bring comfort, community, and support. But it can also come with expenses that surprise families. The average cost of assisted living in Maryland is around $5,000 each month, depending on location and needs. Across the U.S., this number can jump even higher. For many adults and retirees, figuring out how to pay for those costs, whether for themselves or their parents, is a top concern.
The good news? Saving early can provide options and peace of mind. Whether you’re a retiree preparing for your own future or an adult child supporting loved ones, having a plan helps ensure that when it’s time, you have options to do what’s best for you and your family.
Building a foundation with share savings
Every savings plan starts with the basics. A share savings account provides a safe, insured place for money that you may need quickly. For retirees, it’s a reliable home for emergency funds that cover unexpected medical bills or home repairs without dipping into long-term savings. For adult children helping parents, it can be a way to keep funds accessible to cover assisted living costs on short notice.
Adding flexibility with money market savings
Once you set the foundation, the next step is often to look for higher growth without losing access. A money market account can be especially helpful as it earns higher interest than traditional savings, while still allowing you to write checks or make transfers.
This balance of growth and flexibility is helpful for families facing upcoming senior living expenses. For example, if your parents plan to move into assisted living within the next year, keeping funds in a money market account gives your savings a chance to grow while still being readily available to cover the first bill.
Planning ahead with certificates of deposit
For costs that are a few years away, certificates of deposit (CDs) provide guaranteed returns. By committing your money for a set period of time, you lock in a fixed rate that is usually higher than a standard savings account.
CDs can play a key role in paying for assisted living. If you know a parent will need additional care in three years, setting up a CD ladder ensures that funds will be ready when the time comes. This approach provides predictable growth and helps families feel confident that money will be available when it is needed most.
Understanding what seniors may face without savings
Many families wonder what happens if seniors run out of money. Right now, 23% of Americans already support aging parents financially, and another 23% expect to in the future. Even when Medicaid, community programs, or family help are available, covering essentials like medical costs, utilities, or housing can force difficult tradeoffs. Some people end up borrowing thousands to fill the gap.
How much do seniors need to save?
Many families ask how much they need to save to pay for assisted living. There’s no single answer, as the average savings for seniors varies widely. Some may only need modest support to supplement retirement income, while others may need significant funds to cover assisted living or long-term care. A helpful approach is to start small and build steadily. Setting aside a portion of monthly income into a dedicated account creates momentum and helps families prepare for the unknown.
Bringing it all together
The best savings strategy for senior living often involves a combination of accounts.
| Savings option | Best used for | How it helps with senior living costs |
| Share savings | Everyday funds and emergencies | Safe, insured place to keep money that may be needed quickly. Ideal for unexpected expenses like medical bills or home repairs. |
| Money market savings | Near-term expenses | Earns higher dividends than standard savings while keeping funds accessible. Helpful for costs expected in the next year or two, like moving into assisted living. |
| Certificates of deposit (CDs) | Medium-to-long-term growth | Locks in at a guaranteed rate for a set period of time. Useful for planning a few years ahead, such as future housing or care needs. |
Together, these accounts create a layered plan that balances access, growth, and security. They can give seniors and their loved ones more control over the kind of care and lifestyle they want.
SECU helps you save for retirement living with confidence
Preparing for senior living is about more than covering expenses. It is about protecting independence, reducing stress on family members, and ensuring that loved ones have choices when it matters most.
Our savings products are designed to help you plan with confidence, whether you are thinking about your own future or helping a parent prepare for theirs. Have other questions? We’re here to help.
