Take a
look at all the living arrangements available to retirees.
From moving in with your kids to assisted living, there are a
variety of housing options that can fit your new lifestyle.
RETIREMENT BRINGS WITH it many
changes. Your income may be reduced and your lifestyle may evolve as well. The
big house where you raised kids may no longer fit your needs or your budget.
If
you're ready to move someplace new as
a senior, here are seven options to consider:
·
Aging in place.
·
Moving in with the kids.
·
House sharing.
·
Independent living communities.
·
Assisted living.
·
Life plan communities.
·
Subsidized housing.
Aging in Place
Before
you sell your house, decide whether you really want to start over someplace
new. With a few modifications, such as moving a bedroom to the main floor and
installing grab bars in the bathroom, many homes can be safe and comfortable places
for retirees to live.
Known
as aging in place, this living arrangement is feasible for almost any senior,
says Misty Taylor, senior vice president of clinical quality at BrightStar
Care, a home health agency. In-home care can make it possible for even those
with declining health to stay in their homes.
Personal
care workers perform services such as cooking, cleaning and running errands.
For those who need skilled care, some agencies may be able to provide
therapists and nurses who can assist with medication or other hands-on needs.
While Medicare won't pay for ongoing custodial care, long-term care insurance
and some Medicaid programs may cover the cost.
Moving in With the Kids
Although
certainly not for everyone, moving in with an adult child – or having them move
in with you – can be a win-win. It can immediately slash living expenses in half.
Plus, there's the possibility of fringe benefits for both parties. Busy parents
may end up with built-in babysitting, while seniors, particularly those who are
single, benefit from an active household that will stave off loneliness and the
health risks linked to it.
The key
to making these arrangements work is to set clear guidelines from
the start. Make sure everyone has the same expectations about communal living,
personal space and bill sharing.
House Sharing
If you'd
rather not live with a family member, consider renting out space with another
senior. Home sharing with another retiree provides similar financial
benefits without the complicated relationship dynamics that can come along with
moving in with the kids.
Seniors
who still own a home could find a housemate covers much of their living
expenses, and renters can halve their monthly bills. Wendi Burkhardt, CEO and
co-founder of Silvernest, a website that connects seniors who want to share a
home, estimates it costs $1,500 a month to rent an average one-bedroom
apartment in Denver, for example. However, someone renting through a
house-sharing arrangement could be paying only $750 a month.
Independent Living Communities
Independent
living communities can go by a variety of names. They may be called retirement
villages, active adult communities or senior housing. Residents have their own
private living space but also get access to amenities that may include on-site
theaters, golf courses and restaurants. Planned social activities and
excursions may also be offered to residents.
While retirement communities are
often associated with sprawling suburban developments, there are also
opportunities for retirees to remain in cities if they like. "In general,
you're seeing some repurposing of buildings," says Bill Pomeranz, managing
director at investment banking firm Cain Brothers.
Old
schools, hospitals and other downtown spaces may be refurbished as new senior
housing. While some developments target an upscale clientele, Pomeranz sees a
trend toward creating living spaces that meet the needs of the middle market.
Assisted Living
For
those who need some help with daily tasks, assisted living may be the best
housing solution. These properties may have individual apartments for residents
along with communal spaces for meals and social activities. Staff may help with
a variety of tasks related to housekeeping, personal hygiene and medication
reminders.
Assisted
living care often serves as a bridge between independent living and nursing
home care. It is intended for those who are able to manage many activities on
their own and don't require intensive 24-hour assistance.
The
nationwide median cost of assisted living is $4,051 a month, according to the
2019 Genworth Cost of Care Survey. Some facilities may charge an entrance fee,
and the monthly price may be all-inclusive of meals and utilities. Medicare
won't pay for assisted living, but it may be covered by long-term care
insurance.
Life Plan Communities
On the
face of it, a Life Plan Community does not seem like an affordable housing
option for many seniors. Certainly, it isn't an option for anyone who doesn't
have access to a significant amount of cash to pay the initial entrance fee.
However, for those who might need skilled nursing care in the future, a Life
Plan Community can be an affordable choice in the long run.
Life
Plan Communities combine several living
arrangements on a single campus to allow seniors to move from
independent living to assisted living to skilled nursing care, if needed. Some
communities are all-inclusive and include meals as well as other activities.
While
these communities offer several contract options, the highest level typically
guarantees care at a fixed rate. If a resident reaches the point where they can
no longer afford that rate, some communities have foundations or assistance
programs to cover the cost. However, Pomeranz cautions, "A for-profit
(community) doesn't typically make that commitment." Since contracts and
services can vary, read the fine print carefully before signing.
Subsidized Housing
There are
a number of different federal housing programs that can help subsidize or
stabilize the rents of seniors. "At the state and city level there are a
bunch of different programs as well," says Amy McDonald, a licensed real
estate salesperson with Triplemint in New York City.
However,
subsidized housing programs at all levels can be complex to navigate. Each may
have its own eligibility criteria and application process. "The systems
can be complicated and feel daunting," McDonald says.
Even if
you think it will be years before you need subsidized housing, McDonald
suggests meeting with a housing counselor through the Department of Housing and
Urban Development or a local nonprofit sooner rather than later. "Begin to
apply now, because most of the programs do have waiting lists," she says.
Updated on Feb.
13, 2020: This story was published on a previous date and has been updated
with new information.
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