Consider these financial implications first
Retirement communities are not the depressing nursing home, or stuffy assisted living facility that you might imagine. Today, retirement communities range in luxury and amenities, as well as the services provided, just like traditional housing. There are several retirement community tiers to consider when making your decision, and finding the right home for your retirement is a bit more complicated than one would think.
Over 55 Communities – These active communities exist all over the United States and are intended for newly retired, but still active individuals. The over 55 communities often work on a purchase scenario with a built in HOA fee. The fees cover lawn maintenance, snow removal, garbage removal, and any maintenance needed on the homes or the property. Also, these communities often have planned activities, outings, and transportation for those who find themselves just a bit bored with retired life. For those interested in aging in place, or with sound health, but who want access to a community of like-minded individuals, an over 55 community is a good fit.
Before you plunk down your money, however, you’ll want to consider the care you’ll need to pay for out-of-pocket if your health fails. These communities don’t include meal services, medical services, or nursing options.
Rental Retirement Communities – These communities come with a monthly rent that often includes meals, activities, and transportation when needed. The cost, however, is tiered based on the assistance a resident needs. For example, a resident who is active may pay $3,000 per month for the community, but one who needs skilled nursing care may pay between $6,000 - $12,000 per month. Before you choose to rent in one of these communities, it is important to set out expectations and what you’ll do if you need more care than you can financially afford. Financial experts also suggest sharing your wishes with a family member and even drafting up a legal document, in case you are not capable of communicating your wishes about where to live.
Continuing Care Retirement Communities – These are generally communities that you buy into at a specific rate, and you receive continuous care, moving from one section of the community to the other as your needs progress. Active members can enjoy mostly unassisted existences, but still enjoy resort amenities and planned activities. Those in need of nursing care, are generally moved to a nursing facility within the community for continued care.
While these communities can serve a wonderful purpose, it is important to thoroughly research the community and its management company. Transparency is essential in such communities, and understanding the business’ financial situation can help you make an informed decision about what retirement community best suits your needs. It isn’t unheard of for such communities to go out of business, stranding residents with nowhere to live. Tragedies such as this tend to happen with opaque and corrupt management companies, so check heavily into the specifics before making a leap.
Before you make a decision about retirement communities and where you would like to live, it is best to sit down with a lawyer and a financial advisor to map out how your retirement years will play out. A financial advisor can help you decide on a retirement budget that will comfortably see you through your golden years.
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