How Our Life Care Contract Simplifies Retirement Planning
If you meet someone who says they can predict the future, you should move away from them as quickly as possible. While no one can tell you for certain what lies ahead, you can plan for a lot of the possibilities. When it comes to retirement planning and your finances, most would agree it would be nice to have some predictability so you know you have money to do what you want now and in the future.
Make a Well-Informed Decision
The U.S. Department of Health and Human Services estimates almost 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 average market rates for higher levels of care in the Houston area were as follows:
- Home health aide: $5,148/month (assumes 44 hours a week)
- Assisted living: $5,200/month
- Skilled nursing with a private room: $7,604/month
When you consider these senior living costs, it makes it easy to see why many older adults are considering a Life Plan Community, also known as a Continuing Care Retirement Community (CCRCC), with a Life Care contact as an important part of their retirement planning. 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.
The Value of Life Care
Here’s a high-level explanation of the benefits of having a Life Care contact:
- Budgeting: You’ll know in advance what your expenses will be month to month, but if you or your spouse needs a higher level of care, you’ll still pay about the same. The only added expense will be to cover the cost of additional meals.
- Savings: You’ll see substantial savings compared to the average cost of private personal care, memory care and skilled nursing.
- Asset preservation: By paying lower prices for higher levels of care, you’re preserving your assets over your lifetime.
- Tax savings: A portion of your entrance fee and monthly fee could be tax-deductible as a prepaid health cost. As with all financial decisions, check with your financial advisor.
- Peace of mind: Your family members won’t have to worry about what your next move will be if your physical or mental health changes. By pre-planning your future now, you’re maintaining control over those decisions.
What About Remaining in My Home?
Even if your house is paid off, moving to a community might help you save money in some unexpected ways. Here are some of the things you may face if you choose to remain in your home:
- Unpredictable expenses: It’s nearly impossible to predict what your home maintenance, repairs and upkeep expenses will be from year to year. Then there’s factoring in major repairs like your home’s roof, siding, windows, plumbing and wiring, appliances and air conditioning.
- Expenses beyond your mortgage: There are three unavoidable monthly expenses – property taxes, homeowner’s insurance and utility payments – and optional homeowner costs like cleaning, landscaping and basic maintenance.
- Transportation expenses: Between weekly errands for groceries, doctor appointments and social events, it’s not easy to get by without a car. That means you must consider a monthly car payment, auto insurance, gas, annual licensing fees, maintenance and repairs.
- Home modifications expenses: If you remain in your home, to help with your mobility and ensure you stay safe, you may eventually need to renovate your bathrooms, doorways and stairs by adding things like grab bars or making doorways wide enough to accommodate walkers or wheelchairs.
Add Some Predictability to An Unpredictable World
At The Village at Gleannloch Farms, our Life Care contract includes a one-time entrance fee and ongoing monthly costs, all structured to help you save in the long run and simplify your retirement planning. You can view our pricing here and then schedule a personal visit by contacting us or using our Community Assistant chat feature.
At The Village at Gleannloch Farms, our Life Care contract includes an entrance fee that ensures a guarantee that your future and health will be secure with us. You can view our pricing here and then schedule a personal visit by contacting us or using our Community Assistant chat feature.
