Last week I wrote about the true cost of remaining in your current home as you age. As I re-read that post, I worried it might have unintentionally sounded like an endorsement for life plan communities (also called continuing care retirement communities or CCRCs).
That concern matters because one of my guiding principles for this blog and everything we do at myLifeSite is objectivity. I aim to present balanced information that helps you evaluate all sides of the senior living decision and related financial considerations.
The purpose of last week’s article was not to claim a life plan community is always the best option or always cheaper than staying in your home. Instead, I wanted to highlight that staying at home can carry unexpected costs, and when those expenses are fully considered the price gap between home care and a retirement community may be smaller than you expect.
>> Related: What’s the True Cost of Staying in the Home?
There is, however, an important counterpoint. A longtime reader who has worked in multiple retirement communities reminded me that living in a retirement community can also be more expensive than people anticipate. That is a valid and necessary perspective to include.
With the goal of offering a balanced view, I want to explore those additional cost considerations more deeply.
Additional life plan community cost considerations
Many CCRCs include services such as housekeeping, maintenance, and landscaping in the monthly fee. It’s essential to ask precisely what those services cover. Depending on personal preferences, some residents find the included services fall short of their expectations and choose to hire outside help for tasks the community doesn’t perform.
There can also be extra charges for certain outings, special events, classes, or amenities. Because lifestyle expectations vary, it’s wise to outline the activities and services you value and then confirm which of those will be part of the monthly fee and which might be billed separately.
>> Related: The Cost of a CCRC vs. the Value to Residents
The in-home care cost factor
Another key point raised by our reader concerns in-home care. Many residents prefer to stay in independent living as long as their health and mobility allow, and communities generally accommodate that desire until safety becomes an issue for the resident or others.
However, if a resident needs personal care or other home-based services, the expense for those caregivers typically falls to the resident. That’s true whether the person lives in their own house or in an independent living unit at a community—unless the resident’s contract or insurance covers those services.
For some people this is manageable, but it’s an important expense to factor into any comparison. Consider whether your residency contract offers discounted care rates in the community’s health center and whether you have long-term care insurance to help cover such costs. Not everyone has that coverage, so estimating possible in-home care expenses should be part of your planning.
>> Related: What Will Long-Term Care Cost and How Long Will I Need It?
Weighing your senior living options
In short, staying in your home may cost more or less than moving to a CCRC or another type of senior living community. That uncertainty is precisely why it’s critical to identify all potential expenses for both scenarios and include them in your retirement budget.
Carefully review any community contract to understand what is included and what could be billed separately. Clarifying those details will give you a clearer picture of the financial and lifestyle trade-offs involved in choosing the best living arrangement for your later years.
If you’d like to explore senior living communities in a preferred retirement location, try our free online community search tool.