Factors to consider when choosing a retirement home

Choosing the right retirement home takes time. Keep these things in mind as you decide where you’d like to live after retirement:

To enjoy a stress-free retirement, it’s important that you can afford your standard of living. Run the numbers to determine how much money you’ll have coming in each month during your retirement years. Look at your savings, investment accounts, and the value of any assets you might sell, such as your current home. Then determine your budget for renting and owning after subtracting taxes.

Decide if you want to buy or rent

Now that you’ve determined your budget, you can narrow your search to homes that fit within that budget, either rented or owned. Most retirement communities charge monthly resident fees that cover rent, utilities, access to amenities, and, in some cases, meals. Others require residents to purchase homes or condos outright and then pay monthly homeowners’ association or condo association fees.

Each option has different costs and will impact your budget in various ways. If you’re purchasing the property yourself, remember to include property taxes, maintenance costs, home insurance, and tax deductions like mortgage interest in your budget. Weigh the advantages of building equity against the flexibility of renting.

Think about what help you need

It’s smart to live somewhere that can meet your current and future needs, including the home or apartment layout and the services provided by the community.

Make a list of things you’d like to delegate during your retirement years; for example, cleaning your home, maintaining a yard, shoveling snow, or cooking. Consider which tasks you currently need assistance with. Perhaps you no longer drive or find it hard to walk up and down stairs.

You should also consider potential needs you might have later in life. For example, do you foresee needing assisted living services or memory care in the future? If so, are those services available in the community you’re looking at? If not, living in a continuing care retirement community could provide more flexibility as your needs change.

Think about where you want to live

Are you planning to stay local or move to a different area? Knowing where you might want to live will help narrow your search for a retirement community. As you consider relocating, think about its proximity to the following:

• Family and friends

• Hospitals, doctors’ offices, and pharmacies

• Houses of worship

• Part-time jobs

• Volunteer opportunities

• Airports, train stations, and other transit options

• Nearby grocery stores, shopping centers, and libraries

Think about what you want to do

How do you plan to spend your retirement years? Answering these questions can help you narrow down your options.

• Do you want to travel or take classes?

• Do you want to learn a new language or take up a new hobby?

• How do you envision spending your days?

• Is there a nonprofit that you’d like to volunteer with?

• Is there a college that you’d enjoy taking classes at?

• What sports or other outdoor activities do you enjoy?

• Do you want to work part-time during retirement? If so, what type of job?

• Is there a particular house of worship that you want to attend?

How much do retirement homes cost?

You can find retirement homes and rentals at nearly any price point.

Retirement community costs are influenced by several factors, including:

• Amenities provided

• Services offered

• Floorplan

• Private vs. semi-private accommodations

• Meal plans/options

• Type of care, ranging from independent living to memory care

At a typical retirement community, you can expect to pay a few thousand dollars per month. The cost will include your rent, utilities, and access to common areas and standard amenities. Housekeeping, meal plans, outings, and medical services will often cost more.

Ways to pay for retirement homes

Most people pay for retirement homes out of pocket, mainly because you can’t use Medicare, Medicaid, and long-term care insurance to cover retirement communities. Those resources commonly fund higher levels of care, such as skilled nursing or memory care.

To pay out of pocket, you might need to:

• Use Social Security, pension payments, or other monthly income

• Cash out investment or retirement accounts

• Sell your primary residence or a vacation home

• Take out a home equity loan or home equity line of credit

• Withdraw money from savings

• Rely on financial assistance from family

• Work part-time

Some seniors can access financial assistance based on their service history, organization affiliation, or income level. Examples of available programs include:

• Veterans resources such as  the VA Aid and Attendance Program, VA Pension, and VA Housebound benefit

• The Housing of Urban Develop-ment’s Section 8 Housing Choice Vouchers Program for low-income seniors

What if I can’t afford to live in a retirement community?

Living in a retirement community isn’t the right fit for everyone. Luckily, you can enjoy many of the same benefits of living in a retirement community while living in a single-family home or apartment.

Here are a few ideas:

• Move to a location with a dense population of seniors.

• Move into the same apartment with retired friends to create your own mini community.

• Rent a room in your home to another retiree.

• Connect with a local senior center to socialize with other seniors.

• Visit your local library and ask about cultural, educational, and social events.

• Hire a housekeeper and a lawn maintenance person.

• Find nearby SilverSneakers community classes and exercise with fellow retirees.

Source: www.seniorliving.org