Weighing the Cost of Living Options as an Older Adult
It’s natural for time to sneak up on you, especially when you reach your retirement years and beyond. As your wants and needs evolve with time, you may want to reevaluate your living arrangements. You may have been planning to move somewhere new for quite a while or, on the flip side, have just begun noticing how big your home feels after your children have moved out. Whatever the case may be, there are plenty of living options you can consider for your next chapter in life.
Aging in Place
A popular option amongst older adults who want to remain independent is aging in place. This could consist of staying in your current home and making modifications wherever necessary, or moving in with your family. This latter option can be an affordable one, as your living costs will be cut significantly. If you choose to move in with your adult children, it can end up being a win-win for both sides if you’re willing to babysit grandchildren. Plus, being in a full household may help with loneliness and improve your quality of life overall.
If you’re not yet to the point of making home modifications, you may just want to consider downsizing to a smaller home or condo. Make sure to determine how much house payment you can afford based on your retirement income, especially if you plan to move somewhere that’s more luxurious or in demand. If you’ve already paid off your existing home, downsizing may mean that you’re able to pocket a good amount of money, based on differences in price and what you’ll save on maintenance and utilities.
If you need to start making home modifications to maximize your mobility, consider what would best benefit your daily life. If you need to easily maneuver your home with a wheelchair, you can lower the height of your kitchen countertops or install a ramp to your widened front door. Consider bathroom modifications like walk-in tubs and more technological additions like medical alert systems or smart devices. Remodeling for aging in place can range in price, but the average cost falls between $3,000-$15,000. Eventually, you may need to budget for the cost of an in-home caregiver, whether that be for someone to cook, clean and run errands, or a more skilled care worker that can assist with hands-on care or medications.
You can also try sharing a home with another older adult to cut expenses and increase your quality of life. This is often referred to as senior home sharing. Another common living option popping up is senior cohousing. In this scenario, residents collectively plan to build or buy a housing complex with separate rooms or apartments and shared common spaces. This is a great way to remain independent and have continued camaraderie and support from your housemates or neighbors.
Independent Living
Just as the name entails, independent living means that you’ll still have the ability to make all of your decisions about what you want to do with your time. There are numerous benefits to this lifestyle, as you can be part of a living community with different housing setups, from apartments to single-family homes, that also offers activities and amenities. This can provide a great social scene, while also ensuring you have your own space. Typically, people looking for this type of housing option don’t yet need assistance with the activities of daily living (ADLs) like mobility, dressing or personal care. The upside is that you don’t have to worry about daily chores like yard maintenance, cooking and cleaning because these are usually handled by the complex. The cost of independent living typically can range from $3,000-$7,000 monthly, on average.
55+ Communities
One of the most common age-restricted living options is a 55+ community. Oftentimes, individuals looking for a change after retirement move into a community like this, which is age specific and often grouped by interest. There are many different types of 55+ communities, centered around things like golf or religious affiliations, for example. Rising in popularity are neighborhoods built near college campuses so retired professors or like-minded people can be surrounded by an intellectual community. These are similar to independent living facilities in the range of housing available, yet differ as the residents are usually responsible for the mortgage, taxes, property maintenance, housekeeping and more. The cost of these communities can vary, depending on what type of housing you prefer, but is an affordable option, averaging around $1,500 – $4,000 each month.
HOA fees may cover some things, and each community’s policies differ, so inquiring further into specifics may be worthwhile as you weigh your options. There are still amenities within, like pools and exercise rooms, but far fewer than those found in independent living communities. This can be a great avenue if you’re looking for a social living environment after retirement full of adults, rather than kids and younger families.
Assisted Living Vs. Nursing Homes
If you’re struggling with the activities of daily living, you may want to consider an assisted living facility or a nursing home. Assisted living facilities usually provide meals, housekeeping, activities and transportation to doctor’s visits, but are catered more toward mobility assistance and daily activities than medical assistance. The cost of assisted living varies depending on where you live, the size of your apartment, the services you need and the facility itself. You may expect to pay around $4,500 monthly, based on the national median.
A nursing home is typically a better fit for those that need close medical supervision and management. This option means that you get more of a supervised and clinical environment. With that in mind, this is a far pricier option, with private rooms going for over $9,000 monthly and reaching far over six-figures for annual prices. Most people use “nursing home” as a catch-all term for housing options, but it’s usually only preferred for older adults with serious health issues that need constant supervision. These days, many people are opting to spend their retirement in a more community-centered, social setting rather than in a nursing home.
Continuing-Care Retirement Communities
If you want to stay in the same place as you get older and your needs change, you can consider a continuing-care retirement community (CCRC). If you’re independent but are anticipating your needs changing, this may be the place for you, as you won’t have to periodically make a significant move. According to the AARP, the initial payment averages around $400,000 (without added fees) with about $3,500 in monthly payments, which will only continue increasing. Keep in mind, some models don’t have an upfront payment for CCRCs, so this could be a living option to keep in mind.
Other Specialized Care
In addition to the most common living options, there are many other facilities that can support your evolving needs. If you’re struggling with dementia such as Alzheimer’s disease, you may want to consider a memory care facility, which is typically part of an assisted living facility or nursing home.
Different living and care options arise every day, so there are plenty of options to help maximize your physical and mental health, happiness, and comfort level. In order to find the right fit, make sure to do your research, review your finances, and visit communities you may be interested in. There is no right answer when it comes to picking a living option, so you should carefully consider what is most important to you.