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Financial Considerations in Retirement

A senior couple considers the cost of retirement community living

Should You Stay or Should You Go: Financial Considerations in Retirement

What does it really cost to finance your retirement lifestyle? That’s the question facing a rapidly expanding segment of the American population – many of whom are living longer than ever.

You might think that aging in place in the home you already know and love makes the most financial sense, especially if your mortgage is already paid off. However, this is a multi-faceted decision that demands careful consideration across several variables.

In this post, we’ll explore some of the variables associated with financing your retirement and compare them to the cost of moving to a senior living community. In the end, you might be surprised at just how much financial sense it makes to choose stress-free retirement living at one of our Springpoint communities in New Jersey and Delaware.

Thinking Beyond Your Mortgage: Extra Costs of Home Ownership

It’s easy to think of the cost of home ownership as your mortgage payment and your utility bills, but this doesn’t begin to describe the whole picture. When comparing the cost of aging in place at your current home and moving to a Life Plan community, you’ll want to consider the potentially unpredictable expenses associated with homeownership, lifestyle, and personal health and wellness.

From your homeowners’ insurance and property taxes to major home maintenance expenses like replacing a roof or siding damaged in a storm, the cost of staying in your current home is anything but fixed. Now consider the cost of maintaining your current lifestyle: dining out, transportation and vehicle maintenance, cultural activities and entertainment – these expenses add up quickly.

Finally, you’ll also need to consider the costs associated with maintaining your personal health and wellbeing. Later in life, should the need arise, you might also have to factor in the additional cost of unforeseen healthcare expenses, including the possibility of moving to a long-term care community. Again, this is what makes choosing a Life Plan community an advantageous financial decision for your future. All Springpoint communities offer quality healthcare services right on the campus, so once you settle in you won’t need to worry about relocating for health reasons.

While some of these expenses may come as no surprise to you, what you may not realize is that most or all of these things are included in the monthly fee of a Life Plan community. This makes your cost of living more predictable and easier to manage. Later in life, should the need arise, you might also have to factor in the additional cost of unforeseen healthcare expenses, including the possibility of moving to a long-term care community.

CCRC Financing Options to Consider

When it comes to actually paying for a Life Plan community, you may have several viable options to consider. Of course, the feasibility of these options depends on your unique situation, so you’ll want to carefully discuss them with your financial advisor.

Potential CCRC Financing Options

  • Personal income & savings
  • Long-term care insurance
  • Selling a life insurance policy
  • Proceeds from the sale of a home
  • Selling stocks or bonds
  • Purchasing an annuity with a guaranteed minimum withdrawal benefit

Resources to Make Your Decision Easier

At Springpoint, we understand that deciding where and how you’d like to live during your retirement years is a complex decision. This is why we offer a free guide full of useful information to help you understand the financial value of moving to one of our communities.

Not only will you find an easy-to-use worksheet to help calculate and compare the cost of staying in your current home with moving to a Life Plan community, but also valuable information about entrance fees, estate planning, tax advantages, and Lifecare – a safeguard against unexpected healthcare costs.

Contact Us Today to Get Started

Our sales counselors are standing by to help you make an informed decision about your future. Call us today to learn more about the many retirement options available to you at a Springpoint community. We’re always here to help.

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