Retirement Community

In the last post, I discussed downsizing your home.  But what if that isn’t what you had in mind?  If that lifestyle is not for you – what about retirement communities?  Nearly one million American seniors live in senior residential care communities – in either independent living or assisted living. 

Types of communities

There are key differences between the two – mostly in terms of level of care and cost.

• Independent Living is best for active people who want to downsize, socialize, and avoid home maintenance.  In this type of environment – there is a minimal to no care level.  You manage your own personal care and medications.
  
  
• Assisted Living is geared toward those who might need help with ADLs (activities of daily living).  These ADLs – that we often take for granted – can be anything from bathing, dressing, cooking, cleaning, and medication management. 

In my opinion – an ideal community is one where they cater to both types of arrangements.  You might start with independent living but then move to assisted living over time.  These tiered services are often the best choice as care offered can shift as a person ages.  Did you know that an estimated 70% of today’s seniors will require long-term care services at some point in their lives?

Resource Tip:  To view a high-level difference between the two types of living – please read: Senior Housing Guide

Cost Difference

Obviously – a key difference between the two living arrangements is cost.  Assisted living is more money – given that there is more level of care needed.  The average national annual cost of assisted living is $73,200, and an average private room in a nursing home is $125,000 annually.  Without a doubt – you need to do your research to see what type of community you feel comfortable in.  What I have found doing my research is that every place is different – no different than choosing a neighborhood to live in.

What I learned

It has been enlightening by what I have learned.  For example – I never knew there was an Entrance fee for many communities.  At one such place – this fee is intended to pre-fund future healthcare expenses at the current rate – which does help offset higher unknown costs in the future.   But how does that “fee” work if you/loved one decides to change communities or worse – passes away soon after moving in?  Is the money refunded?  It’s an important question to ask.

There are also monthly fees associated with retirement communities – which can cover your utilities, property taxes, maintenance tasks (i.e. repairs, groundskeeping), and any personal services (meals, access to fitness, security, nurses, transportation, seminars, activities, etc.).  It’s very similar to an HOA (Homeowners Association).  Ensure you know what each monthly fee covers.  It could be different from community to community.

When choosing a community, you must research what type of Health Services are available.  Is there skilled care?  Are there rehab facilities available?  What about dementia care?  Remember – you’re choosing a new “home” where inevitably new health issues will arise.  Be sure the new community can help you with this in the future.

Don’t forget to investigate the socialization and activities that each community offers.  Are there any events planned?  Ask to see the social calendar or bulletin board of events.  At one community I visited – I was pleasantly surprised by how many different activities there were – not to mention transportation to the events.  Socialization is a key part of limiting cognitive decline, anxiety, and depression.

Resource Tip:  For further information, read the following:  How to choose a Retirement Community?

I won’t provide costs or even recommend a community because each place / state / level of care will dictate different costs.  To get accurate pricing, you and your family should visit a community, get a full tour, talk with the residents, and then have a conversation with the facility.  You need to do your research and visit the different places.  Create a pros and cons list of the different communities.  Read the online reviews but also take them with a grain of salt.

Whether you choose to remain in your home or move to a retirement community, it’s research you need to do and important decisions you need to make.  Don’t put it off.