How can I learn about the costs of different retirement housing options?
There is a huge and constantly changing range of options, but what people want most is to “age in place at home”. They want independence in, and control of, their environment, and they want as much as they can afford and manage. The two key variables are independence and cost, and everyone must solve for what they can comfortably manage.
Definitions can help to understand the medical support different options entail. Also, a good place to learn more about the industry before making a 20-40 year financial commitment is the National Investment Center for Senior Housing and Care.
The eight models outlined below go from ones including least assistance to those including most assistance. Assistance doesn’t always mean dependence; it can also mean better-supported independence. (It also is roughly less expensive to more expensive.)
a) Aging in place – this is living in their existing home. Strong families and communities can offset the cost of paid help if/when needed. There may be upfront home modification expenses. But the costs of moving can easily be more.
b) 55+ retirement communities – are housing developments for people without children to rent or own a home. Many have amenities and activities, but they don’t offer assistance.
c) Senior cohousing communities – these are communities that come together to build a shared facility, foster mutual support. Each is unique. The Cohousing Association has information about creating them.
d) Senior home-sharing – involves unrelated people sharing housing, with one helping or paying rent in return for a room and access to common space. Every arrangement is different. The National Shared Housing Resource Center is a place to start if you want to learn more
e) CCRCs or LPCs –provide support from independent living to end-of-life care, regardless of what form it takes. It’s expensive, but it’s also comprehensive. You may want to think of it as insurance with full-service medical, health and wellness benefits. In a true-Lifecare community, you can also deduct a portion of the entry fee and the monthly fees as prepaid medical expenses.