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How Independent Living at a Life Plan Community Makes Financial Planning a Breeze

A senior couple calculating on their computer and phones

Predicting the future with any certainty is still impossible. When it comes to financial planning for retirement, predictability would go a lot of way towards helping ensure you have money for your present and future needs.  

Making a Well-Informed Decision

Without a crystal ball, the best any of us can do is to make an informed decision. To help you with your retirement planning, start by considering that the U.S. Department of Health and Human Services estimates 70% of seniors 65 and over will need some form of long-term care in their lifetime for an average of three years. In 2024, a study by Genworth – a company dedicated to helping seniors and their families navigate the cost of health care – found the market rates for higher levels of care nationally were: 

  • Home health aide – $6,483/month (assumes 44 hours a week) or $77,796/year 
  • Assisted living – $5,900/month or $70,800/year 
  • Skilled nursing with a private room – $10,646/month or $127,752/year 

These prices make it easy to see why, according to the Fidelity Retiree Health Care Cost Estimate, a single person aged 65 in 2024 may need approximately $165,000 saved (after tax) to cover health care expenses in retirement. When it comes to retirement planning, if there’s one thing that’s fairly easy to predict, it’s that the cost of care will continue to go up. So, how do you plan accordingly? 

One option many older adults are considering as an important part of their financial planning for retirement is a Life Plan Community with a Life Care contact. This type of community can help you plan for the costs of long-term care at predictable monthly rates while providing you with a more engaging and active lifestyle. You’ll find the cost of independent living is comparable to area home prices and depends on square footage, type of floor plan and number of people living in the residence. 

Value of Life Care

Here is a detailed explanation of the advantages of having a Life Care contract: 

  • Budgeting: You will have a clear understanding of your monthly expenses in advance. If you or your spouse requires a higher level of care, the costs will remain approximately the same, with the only additional expense being for extra meals. 
  • Savings: Significant savings can be achieved compared to the average costs of private personal care, memory care and skilled nursing. 
  • Asset preservation: By benefiting from lower prices for higher levels of care, you are effectively preserving your assets over the course of your lifetime. 
  • Tax savings: A portion of your entrance fee and monthly fee may be tax-deductible as a prepaid health cost. It is advisable to consult your financial advisor regarding this matter. 
  • Peace of mind: Your family members will not have to worry about making decisions if there are changes in your physical or mental health. By planning your future now, you maintain control over those decisions. 

What About Remaining in My Home?

Even if your house is paid off, moving to a senior living community might help you save money in several ways.  

  • Unpredictable expenses: It can be difficult to predict yearly home maintenance, repairs, and upkeep costs. Major repairs like your home’s roof, siding, windows, plumbing and wiring, appliances and air conditioning also need to be considered. 
  • Expenses beyond your mortgage: There are three constant monthly expenses – property taxes, homeowner’s insurance and utility payments – along with optional homeowner costs like cleaning, landscaping and basic maintenance. 
  • Transportation expenses: Weekly errands for groceries, doctor appointments, and social events may require transportation. This includes considering a monthly car payment, auto insurance, gas, annual licensing fees, maintenance and repairs. 
  • Home modification expenses: To assist with mobility and safety, renovating bathrooms, doorways and stairs may eventually be necessary if you remain at home. 

Add Some Predictability to An Unpredictable World

The Village at Gleannloch Farms makes financial planning for retirement a breeze. Use our Moneygauge Calculator to figure out the best residence for your retirement budget, or call us today, use our Community Assistant chat feature or contact us here to schedule a visit to ask all of your questions.