The Cost of Living in a Retirement Community

You may be just beginning to explore other living options as you age. Unfortunately, the cost of living in a retirement community can feel intimidating even for those with a healthy budget. According to the Genworth 2021 Cost of Care Survey, community and assisted living costs an average of $4,500 per month. While that's more reflective of what seniors spend when they're receiving some level of supervision or personal care, it's safe to assume that the cost isn't much less for those living independently in retirement communities. 

Thankfully, there are various senior living options available to you should you choose to leave your home for a retirement community. Furthermore, there are several ways to break down your monthly cost of living in a retirement community to make it a bit more digestible. 

In this guide, we explain the differences between each type of retirement community, as well as what services are typically included in your monthly fee and how to find a community that best suits your lifestyle.

Retirement communities can refer to several different types of senior living situations that include basic 55+ communities, independent living communities and continuing care retirement communities (CCRCs). 

A 55+ community is a block of apartments or condos that are exclusive to adults aged 55 and older. Outside of providing landscaping and property maintenance services, most 55+ communities don’t provide residents with any additional support. Amenities in these communities are often limited, too, with most offering little more than a fitness center, swimming pool or community room.

A 55+ community is a good fit for you if: 

• You’re self-sufficient and able to care for your own home
• You enjoy an active lifestyle 
• You prefer to live in a quiet neighborhood among your peers

Independent living apartment complexes or communities represent a step up from a 55+ community. They’re usually open to seniors aged 55 and older, although sometimes age requirements differ. Most independent living facilities provide residents with various services and amenities, which may include daily meals, housekeeping, fitness classes, planned outings and on-site services such as spas and beauty salons. 

Independent living is a good fit for you if:

• You don’t require full-time care for chronic health conditions or disabilities
• You find it difficult to keep up with basic tasks such as cleaning and cooking
• You want to live in an active, all-inclusive community

A CCRC can provide seniors with increasing levels of care as their needs change. Known for their continuum of care, these communities can provide any combination of independent living, assisted living, memory care and skilled nursing care — enabling their residents to age in place regardless of their health care requirements.

A CCRC is a good fit for you if:

• You’ve been diagnosed with a condition that’s expected to progress over time
• You want to move to a senior community and remain there, even if your condition changes in the future

What’s included in the monthly rate at your retirement community depends on what type of community you choose. In a 55+ community, fees may include property maintenance and landscaping, as well as access to some amenities, such as a pool or fitness room — but that’s usually all. 

In independent living and CCRCs, monthly rates are typically all-inclusive. They include: 

• Meals and snacks
• Scheduled transportation
• Housekeeping and laundry
• Group outings and activities
• Access to amenities

CCRCs offer several contract types for residents: 

• Life Care communities require you to pay a one-time fee when you move in as well as a monthly service fee. These ensure that you have priority access to all levels of care for as long as you reside within the community.
• Modified life care has a similar fee structure. However, the care plan is different. Instead of unlimited care, you’re provided with a predetermined number of days of free health care and billed per diem for any additional needs. 
• Fee-for-service (FFS) communities offer lower entrance and monthly rates. Still, all health care services are charged at full rates. 
• Rental communities don’t require an entrance fee and instead offer residents month-to-month or year-to-year leases. Any health care services are charged at FFS rates.

There are several factors that can affect retirement living costs. These include:

• Floor plans: Communities may offer any combination of studio, one-bedroom, two-bedroom and companion suites.
• Amenities: When a community has more amenities, such as extravagant fitness centers or swimming pools, the price is likely to be higher.
• Location: Communities in affluent locations, such as wealthier residential communities and waterfront communities, are typically more expensive.
• Services: Retirement communities with extra services such as housekeeping and concierge services are generally more expensive.

If you’re ready to make the move to a retirement community, or if you’d like to learn more about what they offer, contact an advisor for help at 1-800-748-4024.