In recent years, retirement has become an increasingly difficult goal for many Americans. So much so that even those fortunate enough to retire may still be faced with financial concerns in the future.

This is especially true when it comes to choosing the best senior living solutions available. 

Moving into a quality retirement community is the first step in a fulfilling new chapter of life. It allows the resident to enjoy retirement on their terms with support where it is needed. All while they partake in a vibrant social life, and plenty of on-site amenities. 

Unfortunately, the perceived cost of senior living can lead people to delay the transition or avoid it altogether. Doing so can often come at the cost of their wellbeing and quality of life.

 

How Much Does Senior Living Cost?

The mistake that many people make is failing to run the numbers and calculate the true cost of senior living communities.

When people look at the initial price tag, they may not consider how other changes in their expenses will offset this cost significantly. For most people, calculating the true cost of senior living reveals how much more attainable it can be than they imagined. 

 

How to Calculate the Cost

 

  • First, you must determine the up-front cost of the senior living community or communities in which you are interested. These initial costs can vary significantly from one community to another. Take into account everything that this price includes, and then factor in other costs for things that are not covered.

    For example, does the community offer complimentary internet service or cable/satellite television to its residents?

 

  • Be sure to talk to a community representative and see if they have multiple pricing options. While monthly rent is a common model, some senior living communities offer a “buy-in” approach. With this pricing model, the resident pays a larger sum up front, allowing them to save money in the long run. Usually, this comes in the form of a reduced monthly cost if the fees are paid annually versus month-to-month.

    Also, inquire about move-in fees that are due in addition to any initial rental fees.

 

  • Consider the amount of time that you or your loved one will likely reside in the community. Taking a moment to see the situation as it may look in action can prove to be very helpful in calculating the true cost.

    For example, if you estimate costs for a period of 15 years, you can expect 180 monthly rent payments. For this reason, it is always a good idea to seek a continuing care retirement community (CCRC). These communities offer multiple levels of care from independent and assisted living to memory care and skilled nursing. This means that you or your loved one can remain on the same campus even as needs change and more care is required.

 

  • Once you have calculated the total cost of senior living, it is time to subtract the expenses that the move will eliminate and how to properly make the move to a senior living community.

    For instance, if the resident sells their home, that money can be put towards the cost of senior living. Then, consider the total amount of expenses for which they will no longer be responsible. Returning to the previous example, they would save on 180 mortgage payments and 15 years of property taxes.

 

  • Use this same process to calculate all the other expenses eliminated by senior living. Consider further, how much they will save on groceries when they move somewhere that provides three meals per day. If TV and internet are included, calculate how much they would save on bills for those services. Apply this process to all the monthly expenses they will no longer be responsible for.

 

  • Once you have compiled all the numbers, subtract the eliminated expenses from the total cost of senior living. This will give you a much clearer picture of the true cost of senior living and help you more easily begin preparations.

 

If you would like to learn more about an Ontario Continuing Care Retirement Community (CCRC) with many included services and amenities, contact Inland Christian Home. Call us today at (909) 983-0084 or reach us online.