Does Social Security Pay for Assisted Living? Understanding Social Security Benefits

Thousands of Americans call an assisted living community ‘home’, but these communities don’t come without a price tag.

Seniors might use a handful of resources to help cover the costs of assisted living, but is Social Security one of them?

Learn how Social Security and assisted living work together, how to utilize your Social Security benefits to supplement assisted living costs, and what other options are available so you can live comfortably in your new community.

Understanding Assisted Living for Seniors on Social Security

Social security is a monthly benefit that seniors can start receiving at age 62. However, if you wait until you reach the full retirement age (typically 67), your benefit is higher. Social security is meant to replace a percentage of a worker’s pre-retirement income based on their lifetime earnings. As of September 2024, about 68 million people received monthly Social Security benefits.

If you have paid into the Social Security system during your working years, you can count on that income during retirement. Although Social Security benefits might not cover the entire cost of assisted living, it can certainly be used in conjunction with other resources and benefits to help cover assisted living costs.

Assisted living offers help with activities of daily living to the elderly and disabled who may not be capable of living on their own any longer. Care in these facilities typically consists of:

• Non-medical services
• Meals
• Group activities
• Personal care
• Various daily tasks (bathing, dressing, grooming, etc.)

How Social Security benefits are used is completely up to the person receiving them. Most often, the funds are deposited directly into their bank account and can be used for their needs, including any costs incurred while living in an assisted living facility.

Can I Afford Assisted Living on Social Security?

Social Security is a reliable source of income for seniors that can help offset the out-of-pocket costs of assisted living, but it likely will not cover the entire cost — other financial resources may be necessary to cover the remainder. 

If you receive Social Security benefits, don’t assume that they’ll cover the entirety of your assisted living costs. Be prepared to search for various facilities, learn their costs and benefits, and create a plan for covering the additional expense of moving into assisted living.

Does Social Security Cover The Entirety of Assisted Living Costs?

The cost of assisted living facilities varies from state to state; however, the average cost in the United States in 2024 was about $4,401 per month:

In February 2025, the average Social Security benefit was $1,979 per month.

If a resident puts their entire benefit towards assisted living, they’d still need to cover nearly $2,500 a month to live in an assisted living facility. These figures are based on averages so individual costs may vary. However, there are additional financial resources most seniors can use to help cover the expenses associated with assisted living. 

4 Social Security Benefits That You Can Use To Help Pay for Assisted Living

#1: Social Security Retirement 

Social Security Retirement benefits are provided to individuals and their spouses who are at least 62 years old and who have worked and paid into the Social Security system long enough to qualify. The total amount varies depending on how much the person paid into Social Security during their career. 

#2: Supplemental Security Disability Insurance 

Social Security Disability Insurance (SSDI) is for people who no longer work because of a prolonged disability that prevents them from doing the work they’ve done or adjusting to other types of work. When they reach full retirement age, their SSDI is converted into Social Security retirement benefits.

The monthly SSDI amount depends on how much the person earned when they were working. In 2025, the average monthly benefit is $1,581.

#3: Supplemental Security Income 

Supplemental Security Income benefits are for people with low incomes who are disabled, or who are 65+ years old. There is no work history requirement needed to receive SSI benefits.

The monthly amount depends on a person’s income, living situation, and more. In 2025, the average monthly SSI payment is $590. Many people who qualify for SSI also qualify for Medicaid, which can also help cover the costs of assisted living.

#4: Optional State Supplements (OSS)

Optional State Supplements are state-based financial help provided on top of SSI benefits. The amounts differ for each recipient and consider factors like local cost of living and if they reside at home or in an assisted living facility. Some states deposit the amount directly into a bank account while others will pay the assisted living facility on the person’s behalf.

Though most states do offer OSS (including Oregon, Washington and Idaho where Senior Services of America manages communities), some states do not, such as:

• Arizona
• Arkansas
• Mississippi
• North Dakota
• Tennessee
• West Virginia

Even if your state does not offer OSS, they may offer assistance by limiting the amount that an assisted living facility charges for room and board. These caps can only be placed on facilities that accept Medicaid and do not cover other care offered by the assisted living facility.

Additional Options To Help Pay for Assisted Living

Budget Your Income

Creating a detailed budget can help you manage your finances effectively so you can supplement payments for an assisted living facility. Here’s what you can do:

• Track monthly expenses: List all monthly expenses, including rent or mortgage, utility bills, groceries, transportation costs, healthcare costs, etc. so you have an idea of what you spend monthly.
• Allocate for assisted living: Determine a set amount of your income to be put toward assisted living costs. 
• Prioritize your expenses: Identify expenses that are wants vs. needs to see where you can cut back on spending to allocate more funds towards assisted living.

Supplement Your Income 

Consider additional income sources to help supplement what you receive from Social Security, like:

• A pension you can factor into your budget
• Part-time work to generate additional income
• Retirement accounts you can withdraw from (be aware of tax implications and penalties)

Financial Assistant Programs

When you solely rely on Social Security benefits, a handful of financial assistance programs can help seniors afford assisted living, including:

• Medicaid: Some assisted living facilities accept Medicaid to provide coverage for care costs. This may vary by state.
• Veterans benefits: Veterans and surviving spouses can look into using Aid and Attendance benefits to pay for assisted living costs.

Utilize Home Equity

If you’re a homeowner, you might consider using its equity to help pay for assisted living costs:

• Home Equity Line of Credit (HELOC): This allows homeowners to borrow against the equity in their home and can provide necessary funds for assisted living costs. Be cautious of repayment terms. 
• Reverse Mortgages: This allows seniors to convert a portion of their home equity into cash without selling their home. Be aware of any implications and fees.

Utilize Your Social Security to Help Find a Home at One Of the Many Senior Services of America Communities

Exceptional care and a comfortable and nurturing environment — that’s what you can expect to find at any of the many Senior Services of America communities throughout the Pacific Northwest. Our goal is to provide a warm and welcoming space that encourages our residents to remain active and engaged mentally, physically, and emotionally. 

We offer home-like spaces and supportive services designed with your specific needs in mind, including:

• Medication management
• Help with hygiene, dressing, and grooming
• Nutritious meals
• Housekeeping
• Wellness and socialization activities
• And more

Find your nearest community today to get started.