There’s always a certain level of uncertainty that accompanies planning for retirement. Even if you started saving early and are on track to retire at the average retirement age of 64 in the U.S., or maybe even earlier, there still may be lingering worries that you haven’t saved enough.
And then there’s the other big ticket items that factor into the cost of retirement: where you want to live and your long-term care preferences. Aging in place may sound ideal, but the costs can quickly add up if your physical health changes or unexpected home maintenance is needed.
Let’s take a closer look at the actual cost of retirement.
How Much Does Retirement Actually Cost?
Retirement cost varies by person and where you plan to live. Changes in physical and mental health can happen at unexpected times and quickly throw off your calculations. The American Association of Retired Persons (AARP) offers up four questions that are worth considering:
- How much will you spend?
- How much will you earn on savings?
- How long will you live?
- How much can you withdraw from savings each year?
The sooner you can work through these questions the better. We recommend thinking through your options early and discussing these questions with your financial advisor to put plans in place.
The Cost of Aging in Place
For many, aging in place sounds like an ideal situation. Your home may be full of cherished memories with friends and family. And moving might sound like a lot of work. However, there are also a lot of costs associated with aging in place.
Some of the costs of aging in place include home maintenance, transportation and meals. An unexpected home or vehicle repair can end up derailing your retirement plans. In addition, there are no guarantees that a person’s physical and mental health will go unchanged as they age.
What happens if you are no longer able to care for yourself and need assistance? According to the U.S. Department of Health and Human Services, someone turning 65 today has almost a 70% chance of needing some type of long-term care services in their remaining years.
In-home care is not covered by Medicare, and the cost of a home health aide quickly adds up, especially if you need around-the-clock assistance. Long-term care (LTC) insurance is another cost to consider, with average monthly LTC premiums for an individual ranging from $200 to $500 depending on the age at which you secure coverage.
The Cost of a Retirement Community
What does retirement mean to you? For some older adults, living at home may not have the same feeling as it did before. Senior living communities feature a variety of living spaces built with your needs in mind. They present opportunities to pursue new hobbies and meet interesting people.
Continuing Care Retirement Communities (CCRCs) are a popular choice among older adults who wish to remain independent while planning ahead for long-term care options. CCRCs like Village on the Green cut out a lot of the unexpected costs associated with at-home living. You pay an entrance fee and then your monthly living costs remain stable and predictable.
Perhaps the greatest value of a CCRC is the full range of health services available, like skilled nursing care, within the community. This alleviates the stress of making a move under pressure. In addition, access to services like on-site rehabilitation allows you to get back to living your best life from the comfort of your community.
The Benefits of Living at Village on the Green
At Village on the Green, a CCRC in Longwood, Florida, we offer our independent living residents a Type A Life Care contract. This means that residents pay a one-time entrance fee, on top of regular monthly payments, which grants them access to a full continuum of care. We recently opened a state-of-the-art Health Center for residents on our 80-acre campus that includes skilled nursing suites, additional assisted living and memory care facilities and an array of amenities.
Beyond our health services, Village on the Green provides residents access to what may be one of Florida’s best kept secrets — the charming town of Longwood, situated in Greater Orlando. Residents have access to a number of outdoor recreational activities on-site and at the nearby Wekiva Island, Big Tree Park, Spring Hammock Preserve and Wekiwa Springs State Park. Meanwhile, Downtown Orlando and its arts and culture opportunities are not far away.
Plan Your Retirement at Village on the Green
Whether you’re looking for a luxury senior living community for yourself or someone you love, We invite you to see what life is like at Village on the Green. Contact us today!