The Costs of Independent Living: Budgeting for Your Retirement Years

One of the most common questions about independent living is what it costs. Several factors go into senior living costs, so it’s important to look at both your current and future expenses to prepare for the lifestyle you want to live in your retirement years. Today, we’re looking at the costs of independent living and how to budget for these costs.

The Monthly Costs

To plan effectively, it’s essential to understand what factors into the monthly cost of independent living. While living in your current residence, each bill is a separate part of your budget. Conversely, in senior living, all your typical monthly costs—such as meals, housing, utilities, and more—are consolidated under one monthly payment.

Senior living costs include:

• Dining: Independent living residents may head to the dining room for a delicious chef-prepared meal or cook in their private apartment.
• Recreational activities: Enjoy reading or crafts in your apartment, head out on a group outing with new friends, or both—your time is yours to spend how you wish. Independent living communities also typically provide organized activities for their residents, such as educational series or events.
• Services and amenities: Many senior living residents love the amenities—which include fitness centers, libraries, and lush outdoor spaces—and many are easily accessible by simply walking out your apartment door. These premium amenities are all included in the monthly fees of senior living.
• Utilities: All utilities are covered by the monthly fee, except for phone and internet.
• Housing: In independent living, you move into a luxurious space with room to personalize according to your style. You’ll also be able to choose from various floor plans and select the option that best suits your needs.
• Maintenance: Home repairs, lawn care, snow removal—you don’t have to worry about any of these tasks or hefty expenses when you live in a senior living community. These tasks are taken care of for you, and the associated fees are built into the cost of independent living.

Additional fees may apply for the following:

• Laundry
• Carport or garage parking
• Salon
• Outpatient therapy
• Guest or carry-out meals

Comparing the monthly cost of independent living to what you’re spending now will help you get an accurate picture of how affordable senior living can be. (We have a free comparison guide to help you get started.)

Planning for Senior Living Costs

Exploring senior living communities and costs involves more than just thinking about your current financial situation. You also want to think ahead to ensure you can maintain your desired lifestyle and cover your expenses throughout your retirement years.

The Unexpected Expenses

Planning for unknown risks and future expenses can be stressful. However, there are some steps you can take to ensure you’re prepared. In addition to having a financial safety net with a savings account, it’s also important to sit down with the staff from the independent living community you’re considering and talk about their available resources.

Offset Senior Living Costs

There are several ways to offset the cost of independent living so you can hold onto more of your savings for unforeseen expenses.

• Selling your current home: Many older adults who pursue independent living use the money from selling their home to fund the monthly costs.
• Cashing out a life insurance policy: Some companies may purchase your life insurance policy so you can use the funds for senior living. However, as with any decision, it’s important to consider your unique situation.
• Taking advantage of community move-in specials: Talk to the independent living community you’re considering about any specials they may have. For example, there may be deals if you sign your lease by a certain date.

Questions on Senior Living Costs to Ask the Community

There are many questions you should ask potential senior living communities, but the following questions are designed to help you develop a deeper understanding of senior living costs:

• What are the options for downsizing or accessing different levels of care?
• Does the cost increase annually?
• Is it possible to lock in a rate for a certain number of years?
• What apartment sizes are available, and what are the cost differences between floor plans?
• Are you offering any specials right now?
• What fees aren’t included in the monthly fees?

Explore a Low-Maintenance Senior Living Lifestyle

From your ideal floor plan to the larger question of which independent living community is the best for you, there’s a lot to consider when planning for senior living. And although cost is one of the top considerations, it’s crucial to factor in the social activities and low-maintenance lifestyle that will enable you to pursue your passions.

Get started on your senior living journey by exploring our cost calculator.