The Cost of Retirement: How to Decide What Makes Sense for You
Aging at home has a romantic sound to it; warm and familiar surroundings with many happy memories to reflect upon. But unfortunately, things can change quickly and the ideal you’ve cherished for years may no longer be a reality—or could even pose a threat to your health and safety as your needs change.
There are three aspects to consider when looking at the cost of retirement where you are aging at home versus living in a Life Plan Community:
- Your home’s condition and upkeep
- Your safety and accessibility
- Your health and wellbeing.
Take a Closer Look at How Each Can Affect the Cost of Retirement
Your home’s condition and upkeep
As the years go by, most homes show signs of age in several ways. Harsh weather can wear down gutters and roofs. Windows become loose or even crack. Doors no longer keep out the cold. Paint fades, flooring cracks, and pipes grow rusty.
It’s all part of the challenge of being a homeowner—keeping up with regular maintenance as well as those “surprises” that seem to come along at just the wrong time. It’s been estimated that the average home maintenance costs range from $4,000 to $22,000 per year.
Just how much time, effort, and money are you putting into the maintenance of your home? Do you regularly have to pay for outside assistance?
It can be easy to forget just what is required to keep everything working and up to date. The lighting, flooring, windows, heating and air conditioning, kitchen appliances, bathroom fixtures, doors, roof, garage, yard and garden, walls, and so on. From having the lawn mowed, to clearing a clog in the sink, to replacing a carpet or repairing the roof, consider some of the ongoing costs you face.
Related: Peace of Mind: Safety Measures in Senior Living
Your safety and accessibility
Remaining at home could actually put you at risk. According to Age Safe America, A 2014 report by the Harvard University Joint Center for Housing Studies found that the five most important “universal design” features in the home are: no-step entries, extra-wide hallways, accessible living spaces on the ground floor and accessible light switches and door levers. However, only 1% of housing units in America have all five of these features critical to in– home safety for older adults.
As you consider the cost of retirement, you will have to confront the costs of making sure your home is a safe choice. If changes are required, they most likely will be costly. Fixr.com estimates that on average, a homeowner will spend $3,000 to $15,000 to remodel their homes for aging in place, with most people paying $9,500 to add a walk-in or roll-in shower to a bathroom, along with safety grab bars and non-slip flooring, as well as a universal height toilet and sink.
And that’s just the bathroom. Consider stairs, flooring, lighting, hallways and more. While you might be doing okay living independently at home now, needs can change. And costs will only go up.
Related: The Role of Social Interaction in Senior Health & Aging Gracefully
Your health and wellbeing
Perhaps the most important factor: living at home alone and feeling isolated from others can be very dangerous to your health. Long-time neighbors have moved, friends drift away, and family members can get wrapped up in busy daily schedules. It can feel as though suddenly, you are on your own, which can lead to poor health and poor quality of life.
Why a Life Plan Community Could Be the Most Cost-Effective Choice
A Life Plan Community offers outstanding value in several ways and is well worth consideration as you explore the cost of retirement.
Typically, multiple levels of care are offered on one campus. You pay a one-time entrance fee, in addition to a monthly service fee. While the upfront fee can be large, it’s helpful to look at it as a downpayment for your future care should you need to move to a higher level of care on campus. Your entrance fee money may be considered a prepaid medical expense by the IRS, so tax deductions may be available.
Now consider what a Life Plan Community can offer:
- Daily meals
- Maintenance and groundskeeping
- Housekeeping
- Utilities
- Security
- Amenities like salons, swimming pools, a library, etc.
- Exercise and wellness opportunities
- Socializing and entertainment
- Transportation
- 24-hour emergency alert system
Imagine the ease of daily life when you no longer must write checks for home repair, yard work, electricity, or a security system. You don’t have to pay to go to a gym, or see a movie. You can park your car and take advantage of scheduled transportation to markets and sites of interest.
Related: The Number One Factor When Choosing a Senior Living Community
More than Dollars: It’s About Value
When considering the cost of retirement in terms of aging at home versus a Life Plan Community, be sure to not overlook a very key factor: quality of life. This can be everything from feeling safe and cared for to knowing good friends are just a few feet away.
It’s knowing a helping hand is always nearby if needed. Having the option to join others for a nutritious dinner instead of eating alone in front of the television. Learning a new hobby. Joining the group for a special outing to a nearby museum. Inviting your family over for a holiday celebration.
And perhaps most reassuring, knowing you have a plan in place for your future care needs, so you can truly relax in the moment and make the most of every day.
Schedule a Tour of a PMMA (Presbyterian Manors of Mid-America®) Life Plan Community
With access to every level of living for each season of your life, we’re committed to helping you live to the fullest each day and offering you the personalized support and care you need to feel your best. Download our free guide, “Mastering Financial Planning for Retirement Living in a Life Plan Community” or contact a community near you to learn more and to schedule your personalized tour.
