Why senior living may be more affordable than you think.
Have you ever thought about senior living as a potential option for yourself or a loved one — but are now wondering if you can afford the lifestyle? It’s common for people considering senior living to learn the cost of retirement residences in their neighbourhood and think, “That’s way more than I’m paying in my current home.”
While the sticker shock is normal, there are some important factors to consider before disregarding the living option as too steep for your lifestyle — especially if you believe the social life, sense of security, or care support can improve your present situation.
If your first assumption is that you should stay in your current home because it’s easier on your wallet, you may be surprised to find that isn’t entirely true. Here are 3 financial considerations if you or a loved one are opting to stay in your own home:
1. Daily living and homeownership expenses at home
Running a household adds up! When you tally up monthly and annual expenses to run and live in your home, you may be surprised once you calculate what you’re currently spending and compare it to retirement living. Think of the following:
• Property taxes and home insurance
• Utilities or condo fees
• Home maintenance costs like replacing a roof, windows, appliances, etc.
• Cleaning or meal services
• Snow and lawn care maintenance
• Groceries, entertainment, and transportation
In some cases, an option like a retirement residence doesn’t cost that much more than the lifestyle someone currently leads.
2. The cost of home care
Depending on your province of residence, if you’re considering private homecare instead of retirement living, you could find yourself spending anywhere from $35 to $50 an hour for support (usually with a minimum of 2 to 3 hours required) and $60 an hour or more for nursing care.
For individuals with heavy care needs or dementia, this can be a more costly option than retirement living, totaling well over $100,000 per year in addition to your current home expenses.
3. The cost of staying social
Research continues to show how important it is to stay social in our retirement years, and for those people who take this to heart, there’s still a cost involved.
Transportation costs like taxis or car insurance if you still own your own vehicle, entertainment costs like coffees or meals out with friends, or other recreational endeavors like exercise classes or shopping trips all add up quickly.
Planning for retirement with financial expert Kelley Keehn
Have you started to plan for how you want to live in your later years? Canadian Financial Educator Kelley Keehn outlines a series of questions to ask yourself if you’re exploring whether retirement living is an affordable lifestyle option for yourself or a loved one.
Get a head start on your financial planning for senior living
To help you determine how valuable a retirement living lifestyle can be for you or a loved one, Chartwell launched an exclusive “Affording Senior Living” Guide where we aim to demystify common myths about senior living affordability and educate you on your options.