Whether you’ve been planning for retirement for decades or just starting to map it out, one of the biggest worries older adults have is “do I have enough to retire?” There are many different factors at play for each individual. While we can’t tell you exactly how much you will need to retire, we can help provide some context around two of the biggest considerations in retirement: where will you live? And what type of care should you plan for?
How much does retirement cost?
When you envision retirement, what do you see? The answer to that question will be different for everyone, but it will help put into perspective what amount you’ll feel comfortable retiring with. To get a better idea, the American Association of Retired Persons (AARP) also offers these four questions to consider:
- How much will you spend?
- How much will you earn on savings?
- >How long will you live?
- How much can you withdraw from savings each year?
We recommend talking through these questions early with a financial planner to set you up for the retirement you desire.
The Costs of Aging in Place
Some seniors picture themselves remaining in their family homes in retirement. If you fall in this camp, expenses to consider include dining, travel and home and yard maintenance as well as the cost of long-term health care. The federal government reports that 7 out of 10 seniors will require long-term care at some point in their lives. For individuals aging in place, long-term health care costs tend to include long-term care (LTC) insurance premiums as well as the cost associated with hiring in-home health aides.
The premiums for LTC insurance vary depending upon the age at which you secure coverage. The “sweet spot” is around 60 years old, but the average monthly cost for an individual LTC plan could still be anywhere from $200 to $500. And while the expense of a home health aide will also depend upon the number of aides and the hours of assistance provided, data from Genworth puts the average monthly cost of a home health aide at around $4,500.
The Costs of a Retirement Community
Some seniors picture themselves living a carefree lifestyle in a community of other active older adults. If that’s the case, evaluate the costs and amenities provided by different senior living communities in your area. Continuing Care Retirement Communities, or CCRCs, are a particularly savvy move for older adults looking into senior living options. CCRCs offer additional levels of health care, like skilled nursing services, within their community, which eliminates the need for residents to make any other moves as they age.
In order to sustainably provide this additional care to all residents, many CCRCs charge an entrance fee. An entrance fee will depend upon the location and size of the community as well as the amenities and services provided, and can range from $100,000 to over $1 million. Even if a CCRC doesn’t charge an entrance fee, all communities have some sort of additional monthly fee that is, on average, a few thousand dollars.
The Benefits of Friendship Village of Bloomington
Friendship Village of Bloomington is a Continuing Care Retirement Community offering a Type A Life Care contract. This means that residents pay an entrance fee that not only secures their new home in our community, but also ensures priority access to additional health care available in our community, including our memory care and assisted living services. This way, should the time come that those additional health or support services are needed, you have the care you need within the community you love.
In addition to providing a full continuum of care at Friendship Village of Bloomington, if, through no fault of their own, a resident outlives their financial resources, our Benevolent Care Promise is our steadfast commitment to residents that we will continue to support them as long as they live in our community.
One of the greatest benefits of living in our community is one you can’t put a price tag on. All our residents agree that the rich friendships and deep connections you make while living here are one of the best parts of Friendship Village of Bloomington — it’s in our name, after all.
Plan Your Retirement at Friendship Village of Bloomington
Whether you are planning your own retirement or helping a loved one, we’d love to show you around our friendly community. Contact us today to learn more.