Taking the leap into retirement can be exhilarating and liberating if you feel well prepared. That’s why it’s important to start planning for retirement early, envisioning the life you want for yourself and understanding the costs of different factors at play. At Grand Lodge, it’s our goal to arm you with as much information as possible so you can plan for your future and make the decisions that are right for you and your loved ones.
How much does it cost to retire?
The question of how much you need to retire does not have a one-size-fits-all answer. Lifestyle preferences and regional costs of living are just two factors that can influence the answer to that question, not to mention any kind of advanced care you might need or whether you choose to live in your family home or move into a retirement community. To better wrap your head around the costs of your retirement lifestyle, the American Association of Retired Persons (AARP) recommends answering these four questions:
- 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?
Talk about the life you envision for yourself and discuss these questions with your financial planner to help set you up for maximum enjoyment of your golden years.
The Costs of Aging in Place
For seniors who desire to age in place, one benefit might be the absence of monthly mortgage payments if you own your house outright. Monthly costs to consider would still include standard home and yard maintenance, food and travel, as well as long-term care costs. According to the federal government, 7 out of 10 seniors will require long-term care at some point. Long-term care (LTC) insurance can help offset these costs, although monthly premiums will vary depending on your age when you secure coverage. The recommended age for the best payoff is between 60 and 65, although an individual monthly premium could still be anywhere from $200 to $500.
When it comes to the cost of long-term care while aging in place, another question to ask is who will help take care of you should you require it? For many older adults, the support of a home health aide is the solution. While the cost of hired support will vary based on the number of hours worked in your home, Genworth reports the average monthly cost of a home health aide is around $4,500.
The costs of a retirement community
For seniors who wish to leave the trappings of homeownership behind for an active community of older adults enjoying a similar life stage, evaluate the costs and services provided by retirement communities in your area. Continuing Care Retirement Communities (CCRCs) are a popular choice for seniors who are looking for a vibrant community while planning for their futures. CCRCs are communities for independent seniors that make advanced care available.
CCRCs typically charge an entrance fee which helps cover the cost of the additional care available to all residents. The price of an entrance fee will differ greatly by community, region, levels of care offered and other available services and amenities, ranging from $100,000 to over $1 million. Whether or not a community charges an entrance fee, there will be a monthly fee of a few thousand dollars on average that covers living expenses.
The Benefits of Grand Lodge
Grand Lodge at the Preserve is a CCRC in Lincoln, Nebraska, this means that upon securing your new home in our community, you pay a one-time entrance fee and then a steady monthly fee that covers dining, maintenance, housekeeping, activities and more once you’ve moved in. Not only do Grand Lodge residents live an active and engaged lifestyle, but they know they will be taken care of while they do it.
Each of the independent living residents in our Life Care community has access to the services and amenities we offer, from housekeeping and dining to fitness and social activities. Grand Lodge has all of the luxuries you deserve in your retirement years in addition to the fun, vibrant friendships you’re sure to discover here.
Plan your Retirement at Grand Lodge
Whether you’re looking for the ideal retirement community for yourself or a loved one, we invite you to come visit Grand Lodge and see our close-knit community firsthand. Contact us today!