More and more retirees are looking to be more active and more social during their retirement than ever before. They’re looking for leisure, luxury, and adventure. Rocking chair retirements characterized by knitting and crossword puzzles are gone by the wayside. Retirement communities step up to the plate, providing the active, exciting lifestyle that today’s retirees are looking for. But how can an average person at average retirement age afford luxurious retirement living communities? Here, we’ll cover the cost of services, how most people pay for their retirement community living, and some tips and tricks to help you prepare for the financial implications of retirement.
The cost of retirement community living
Each retirement living community is set up a little differently. While many retirees hear the initial numbers and worry they won’t be able to afford the cost of living in a retirement community, our residents are often surprised to find that they’re able to afford the lifestyle after all, when you take into account how much else is covered in the fees.
At Cambridge Village, our all-inclusive style of living incorporates all of your monthly expenses into your monthly rental price. Utilities, a credit to be used in our restaurant, housekeeping, and many other expenses are grouped into one monthly sum. This gives our residents the comfort level to know exactly how much they will be spending each month.
Ways to cover the costs
Many people find that their monthly expenses are significantly reduced by the time they retire. If they planned well and didn’t experience any unexpected, dramatic expenses, their mortgage is paid in full. They no longer have loans on their personal vehicles, and their kids are grown and independent. Insurance premiums are predictable and coverage is good.
Some people fund the initial move and monthly costs through the sale of their home. When you move into a retirement living community, you’re able to sell your family home knowing that you have living arrangements that will continue to meet your needs in the future. Retirement living communities allow you to age in place, which allows the freedom of for downsizing, allowing you to sell your home and much of the clutter that has collected over the years.
It’s important to keep in mind that you won’t need to pay extra for the services that you were paying for before, like home repair, yard work, waste management, and more. These services are either not necessary anymore or are included at no additional monthly fee.
Tips and tricks for financial planning
These tips and tricks can help you plan for the retirement you want and avoid surprises:
- Meet with your financial advisor to find out how far your money can go and the smartest way to use your assets to get the lifestyle you want. He or she can help you plan for ongoing retirement – some are lasting as long as 30 years today – and determine whether each living option you evaluate is affordable for you.
- Make sure you request information about costs and fees associated with a retirement community prior to making a commitment. Financial information should be provided in writing so that you can plan for the future and share pertinent information with your financial advisor and power of attorney, if applicable.
- Explore your options before settling on one. Tour and interview at least two or three retirement living communities before making a decision to ensure your decision was made with a complete perspective.
Most importantly, start planning early. Begin thinking about retirement when you’re young so you can set goals and think about what you hope those days of your life will look like. Meet with a financial advisor well before you’re ready to retire so you can talk about your dreams and put your hopes into action. Saving for retirement and investing smartly can help you experience the luxury and adventure that retirement is for many people – and can be for you, too. It’s never too early to start exploring your options.
Cambridge Village of Wilmington is the area’s premier resort-style retirement community, offering the conveniences and amenities that you’d expect from a luxury independent retirement community. We take a holistic approach to health, treating the whole person and focusing on well-being in every area: physical, intellectual, emotional, social, and spiritual. Ultimately, we offer a community that makes people feel at home and an environment they can thrive in.
Contact Cambridge Village of Wilmington at (910) 239-9500 for more information or schedule a tour today.