If you’re reading this, there’s a good chance that you’re considering moving to a retirement community or you’re doing research on behalf of someone who is. Every situation is different, involving dozens of variables, both known and unknown.
To make the best decisions for your unique set of circumstances, you’ll want to have as much reliable information as possible. And, you’ll want to know all your options so that you can weigh them carefully. For those who are thinking about moving, the primary decision may be which retirement community and when. For others, it may be whether to move at all.
If you’re in the second group, financial considerations may factor heavily into your decision. This blog post is intended to help you compare the costs of aging in place versus the costs associated with living in a retirement community — and to make sure you’re taking other points into account.
The goal is to arrive at a decision that will lead to a comfortable, enjoyable retirement.
First, list your current expenses
If you haven’t already done so, a good place to begin is to list your current expenses. Sun Health Communities offers a convenient, easy-to-use cost calculator to help with this, and you can even download a free report to keep for future reference.
If you’re going to make your own list, check the items below to see if they need to be included:
- Property taxes
- HOA fees
- Insurance (home, health, car and any other policies you might have)
- Home maintenance and repairs
- Pet care (food, grooming, veterinary care, etc.)
- Transportation (including car payments/maintenance and gas, if applicable)
- Landscaping
- Security
- Rent or mortgage payment
- Groceries and restaurant meals
- Personal care items and services
- Utilities (electricity/natural gas, garbage, water and sewer)
- Phone, internet, cable and/or satellite dish
- Entertainment
- Medical expenses
- Memberships
Second, consider future costs
Looking into the future is a critical step in making the right decision. Although none of us can know what’s going to happen in the months and years ahead, you can use the information you have now to estimate what some of your future costs might be.
Evaluate your home
Even if you own your home outright, there are still costs associated with maintenance. Consider whether it will need any major repairs in the next several years — maybe a new roof, new appliances, or a new heating and cooling system?
In addition to home maintenance, it is important to assess the safety of your home to successfully age in place. A variety of health conditions can increase your risk factors for a fall-related injury. Modifications to your home, such as installing nonslip flooring, grab bars, handrails, and better lighting, can help reduce the likelihood of an injury.
Additional home modifications might be necessary if you or a family member were to become disabled. For instance, you might need to have doorways widened and stairs replaced with ramps to accommodate a wheelchair or walker. Or, you might need to redo your bathroom to make the toilet, shower/tub and sink more accessible.
Successfully aging at home is becoming easier with advances in technology, and that trend will undoubtedly continue. Artificial intelligence systems are already helping people feel more at ease in their homes by providing additional security and services such as medication reminders and alerts to caregivers if a problem is detected. These systems, however, are not inexpensive, and many come with a monthly fee.
Evaluate your health
This is a little more challenging than taking stock of your home, but you can still use your current health status to help project what your future expenses might be. If you’re in good health now, you might not encounter major health-related expenses for some time.
If, however, you have a chronic health condition such as diabetes or congestive heart failure, you’re probably familiar with additional symptoms and complications you might face later on. It’s a good idea to keep potential future care needs and their costs in mind as you contemplate whether to stay in your current home or move.
Naturally, your insurance coverage will determine how much of your future health care costs you’ll need to pay out of pocket. It’s highly unlikely that Medicare will cover all of your health-related expenses, particularly if you end up needing long-term care. For example, if you happen to be among the 70 percent of people over age 65 who will eventually need skilled nursing care1, Medicare may pay the full allowed amount for the first 20 days and part of the cost for up to an additional 80 days — but after that, care isn’t covered. Many websites provide information about what Medicare does and does not cover, such as this one from Healthline. Medicaid will cover some expenses as well — but only if you meet income and asset requirements. Supplemental health insurance is another option, but even with that, you’ll need to pay part of the costs, along with the premiums, of course.
If you need medical or living assistance, the expenses can add up quickly. Genworth Financial has a helpful website that provides national median costs for home health aides (who help with personal care services, such as getting dressed, bathing and using the bathroom), homemaker services (e.g., cooking, light housekeeping, laundry, running errands) and other types of care. The website even lets you estimate costs within a specific geographical area.
Evaluate your ability to continue driving
If you choose to remain in your home, maintaining an independent lifestyle may be relatively easy as long as you can still drive. The time may come, though, when you’re physically unable to drive, or it’s no longer safe for you to do so. If you can’t drive — even if it’s only temporary, such as while you’re recuperating from a hospitalization — you’ll need to factor in the cost of alternative transportation unless you have a friend or family member who can take you where you need to go free of charge.
The National Association of Area Agencies on Aging (n4a.org) offers an informative brochure you can use to find out about transportation options within your community.
And last, compare your options
Once you’ve evaluated your current expenses and lifestyle, you can compare your options. Moving to a retirement community and choosing to stay in your home both have their share of financial considerations, as well as other important factors to keep in mind.
Moving to a retirement community
Many, if not most, retirement communities include home repairs and maintenance and some type of security. Beyond that, you’ll find there are many differences among them. For instance, you may or may not have to pay extra for the following:
- Housekeeping services
- Utilities
- Social activities and classes
- Meals
- Health services
- Transportation/parking
Once you’ve chosen a retirement community, you’ll need to find out exactly what’s covered in the entrance fee and monthly fee. A residency counselor is your best resource for this information. Depending on your needs now and in the future, you could find that the comprehensive services available in a retirement community might be less expensive than staying where you live now.
Sun Health Communities’ three Life Plan Community locations
As Life Plan Communities, all Sun Health Community locations encourage residents to embrace retirement as an active lifestyle that’s grounded in wellness and fulfillment. And, with a Life Care agreement, you could rest assured knowing that you would have access to the full suite of health services even if your financial situation changed or you outlived your assets. Three different types of Life Care agreements are available, making it possible to select one that’s appropriate for your specific circumstances.
Before moving to a Sun Health Community, you’ll pay a one-time entrance fee. Then as a resident, you’ll pay a monthly service fee that includes all monthly expenses like dining, housekeeping, utilities, use of community amenities, and more.
Staying at home with Sun Health At Home
Another possibility to consider is a membership plan with Sun Health At Home. A Sun Health At Home membership comes with the security of knowing that you’ll be able to age safely in the home you love. As a member, you’ll have access to a range of benefits such as in-home functional and safety assessments, health and wellbeing services, and other support to help you maintain your independence in your current home. As a Life Plan Community, Sun Health At Home also guarantees members access to a full suite of health services with a Life Care agreement.
Sun Health At Home has several membership plans with different monthly fees to choose from. Membership fees depend on age and can be discounted if two or more people in the household join Sun Health At Home. Membership fees may also be tax-deductible as a prepaid medical expense.
Taking the next step
As you go through this process and conduct your research, it’s helpful to include family members, trusted friends, a primary caregiver if you have one and a financial adviser, as well. To further explore the options available from Sun Health Communities, we invite you to compare moving to one of our Life Plan Communities with joining Sun Health At home. For more information about comparing costs and lifestyle of the two independent living options, contact our friendly residency or membership counselors today.
1 Department of Health and Human Services, www.longtermcare.gov
