Luxury senior living is an increasingly popular option for retired seniors. These luxury communities offer upscale amenities such as restaurants, entertainment, and fitness centers. As someone who is retired and looking for living options, luxury senior living may be how you want to spend the rest of your days. You may be asking yourself “When should I refinance?”, and decide to look into luxury senior living options instead. However, as the name implies this is a very expensive options. In this article, we will discuss financial considerations for luxury senior living.
When looking at luxury senior living communities, your biggest consideration should be comparing prices. Many luxury senior centers typically cost between $2000-5000 in rent per month. To get the most out of your money, you should make a list of lifestyle necessities. High end retirement communities will charge you more for increased amenities. When looking at communities, you should also consider price hikes. Unused space will lead to unexpected price increases, so evaluate a community’s occupancy before making your decision. Shopping around will help you pick the luxury senior living center at the best price.
Entrance fees are a costly consideration for luxury senior living. Just to get into a luxury senior living community, you have to pay an exorbitant entrance fee. Entrance fees typically cost upwards of $250,000. If you want to reduce this cost, you should look at the contracts available. In some cases, you can actually use your insurance to negotiate your entrance fee. You can also negotiate a modified fee for service based on 30 to 90 days. It may be advantageous to lock in a price ahead of time. This cost is the highest barrier to luxury senior living.
If you find that luxury senior living isn’t right for you, you need to consider refunds. Many communities offer a refund in the contract. These refunds range from 50-90%. You can collect this refund if you leave the community within a few years. Typically this form of refund will be a lower percentage. Should you die in the community, your heir or estate may be refunded up to 90% of your entrance fee. If you don’t have anyone to leave an inheritance to, this refund will not benefit you. If you join a community with several years left, you may not be able to afford the lifestyle for the rest of your life. Carefully consider when you want to enter a luxury senior living community to potentially make use of refunds.
Before joining a luxury senior community, you need to figure out your budget. Consider speaking with American Express Financial Advisers to see where you stand financially. Continuing care retirement communities typically have additional fees on top of rent. You need to consider how much money you will have to spend on food, cleaning, and healthcare. Because you most likely aren’t making more money, you should budget to last for the rest of your life. Use your essential list from when you compared pricing to help set a budget. Set aside some money for basic needs such as food and healthcare. Consider less costly forms of entertainment. Your most important consideration is learning stick to your budget after you set it. It is easy to rapidly go through money in a luxury community.
You may also want to consider foreign luxury senior living options. Many high end hotels in Mexico are converting to retirement models. These foreign centers have the advantage of cheaper entrance fees and costs. You can also use these centers for weekly payment options instead of monthly payments. Perhaps you don’t want to spend all your time and money in a luxury senior living center. Maybe you’ve wanted to start a painting franchise your entire life, but never had the time. You can vacation at these centers and return to a more affordable lifestyle. There is also no age restriction. Typical retirement communities restrict occupancy to age 50 and up. If you have the money to retire younger, foreign luxury retirement centers may be for you.
Luxury senior living can be an attractive option to live out the rest of your life. Before picking a community, think about entrance fees, pricing, and foreign options. Then, carefully manage your budget and refunds. By keeping these factors in mind, you can enjoy the rest of your luxurious life.