Retirement homes can cost anywhere from $700 per month to $10,000 per month. Pricing depends on the level of support you need, as well as the amenities, services and accommodations you’re looking for.
The main types of retirement communities include independent living, assisted living, nursing homes and memory care. Assisted living, nursing homes and memory care communities are all designed for adults that need assistance with daily tasks or health care. In most cases, people don’t need that level of support and would prefer independent living.
Independent living is for active, healthy people who can care for themselves and simply want to enhance the lifestyle they enjoy during retirement. In independent living, individuals or couples rent an apartment or townhome in a retirement community that provides them with added amenities for convenience and safety.
Since it doesn’t include healthcare or support costs, independent living is typically much more affordable than supportive living costs. In many cases, you’ll pay between $2,000 and $5,000 per month for independent living, while a nursing home costs closer to $7,000 or $8,000 per month.
The factors that determine the cost of your retirement community will be the same, but the cost per month can vary significantly based on:
When determining the total cost per month and per year for a retirement community, you’ll want to start by looking at your state’s average figures. Costs in Virginia will be different than in California. The national monthly average cost for an independent living community can range from $1,399 per month in South Dakota to $4,002 in Massachusetts.
In Virginia, independent living pricing ranges from $1,042 per month to $4,400. Communities with higher costs typically offer more luxurious lifestyles, with additional services and amenities. However, it is also possible to find luxury living at less than $4,000 per month. For example, Aspire at Carriage Hill’s independent living pricing starts at $2,695 per month and is all-inclusive, offering a range of amenities and services including housekeeping, resort-style dining and an on-site spa.
Some people can privately fund the cost of their retirement. However, there are also many ways to supplement your retirement budget as well, including:
If you’ve been lucky enough to work a job that contributes to your retirement, now is the time to cash in. You can use those funds in conjunction with any money you’ve saved on your own to help pay for your retirement. If you’ve saved for a while, those funds may be enough to comfortably cover the cost of a retirement community on their own.
Those who are lucky enough to have a pension from their company can also leverage those funds to pay for the retirement community of their choice.
Annuities can be a good pre-planning option for retirement. You pay a lump sum upfront and the total amount gets disbursed back to you over a predetermined period of time. There are several types of annuities, including an income annuity. The benefit of an income annuity, and many other types of annuities, is that you’ll continue to get payments even if your purchase premium runs out, and it can help ease stress to know you’ll have a regular source of monthly income. Annuities also aren’t fully counted by Medicaid as assets, so they may provide additional benefits to your finances depending on the federal programs you’re taking advantage of.
If you decide to use this option, be cautious the kind of annuity you buy and who you buy it from. There are annuity scams that specifically target people planning for retirement. You should consult with a reputable financial counselor before making a final decision.
Moving into an active retirement community is a popular choice for many adults. In a community, you no longer have to deal with the burdens of homeownership, like maintenance and repairs, and you gain access to a variety of amenities and services.
For some, a retirement community means freedom from cooking, while others enjoy a more active social calendar where they’re close to friends and neighbors. Still others prefer to spend their time traveling, knowing their retirement community will ensure their apartment is safe and cared for while they’re away.
At Aspire at Carriage Hill, we make all these goals possible and more. Our active independent living community enhances residents’ lifestyles with luxurious, yet affordable private apartments. If you’re interested in learning more, contact us online. Our team will be happy to answer your questions and help you find the retirement living options that fit your goals.