When many families first explore pricing options, they can feel a sense of “sticker shock.” Yet, many retirees are surprised to discover that they can comfortably afford the community lifestyle. Staying in a traditional home can carry unforeseen costs in the long term that families may not anticipate.
The team at Frederick Living has been helping families to navigate the shift to community living for generations. That’s why we’ve created this guide to walk you through the true cost of retirement communities and the key facts you need to know when deciding on your next step.
Exploring retirement community pricing can seem overwhelming for the first time. But it’s important to remember these figures are not like rent or a mortgage. They’re all-inclusive for living costs, covering everything from home maintenance to healthcare.
Experts agree that there’s a general cost of living in retirement community settings:
So, what is the real cost behind retirement communities? Although these figures can seem expensive on the surface, we’re going to uncover the cost of living at home versus joining a community lifestyle.
The day you pay off your mortgage brings an undeniable sense of financial freedom: a true milestone worth celebrating. Although homeownership offers significant cost savings and a desirable financial asset, there are a few sneaky costs that can add up as you enter your retirement years.
In fact, housing experts state that the average paid-off U.S. home costs $4,005 per month in out-of-pocket operational costs, from maintenance to taxes, utilities, and more.
The next factor to consider is home care. If you or a loved one needs part-time healthcare assistance at home, adding just 20 hours a week pushes the true monthly cost to $6,805 per month ($35/hr = $2,800).
Surprisingly, hiring a single person to help at home and managing home maintenance is often more expensive than the community lifestyle. Why? The community has invested in infrastructure, allowing them to cut costs by caring for a larger group of residents at the same time.
“Joy comes to us in moments—ordinary moments. We risk missing out on joy when we get too busy trying to do it all ourselves.” — Brené Brown
Life is full of surprises: there’s always another simple pleasure to give us a smile around the corner. Sometimes, the decision to start your next chapter in a retirement community can seem truly daunting. But when you join a community with a wide range of assistance and healthcare options available, it becomes far easier to embrace moments of joy, right-size your life, and leave the worries that are costing you behind.
One of the common concerns when making the move to a long-term campus like a continuing care retirement community (CCRC) is the loss of freedom and flexibility offered by 55+ apartments.
In reality, the CCRC model offers long-term peace of mind with first-priority access to healthcare and amenities like maintenance-free living. And if you’re in independent living, you can come and go as you please, like you would living anywhere else.
Ultimately, while 55+ apartments offer short-term flexibility, a CCRC is a long-term investment, offering lifelong health security, community, and housing stability.
At first glance, reviewing entrance fees and monthly service fees could seem like a lot to manage. In reality, once set in place, these pricing models make paying bills stress-free and predictable, even with ups and downs in the economy.
An upfront investment in a retirement community with a CCRC model is like a down payment on a home. It’s a one-time fee that guarantees lifelong residence and gives you priority access to future care levels.
Many communities offer the option to receive a customizable refund (e.g., 50% to 90% refundable), returning a significant portion of this fee to you or your estate.
Because Frederick Living is a Type C CCRC, Independent Living residents only pay for their day-to-day lifestyle and housing expenses. Then, they pay for higher levels of healthcare if and when they need them.
A single, recurring monthly payment that covers your day-to-day community lifestyle. This fee commonly includes:
Together, the entrance fee and monthly service fee provide long-term, guaranteed housing. Plus, they organize all your household bills into a single, predictable payment.
Healthcare services have a unique pricing structure based on the level of care necessary.
Typical services and their price breakdowns include:
This flexible structure ensures you never pay for care services before you need them, while offering the peace of mind that support is always readily available.
We understand that moving to a retirement community is a season of change. That’s why we have friendly team members at Frederick Living ready to help. We’ll take you on a complimentary tour and sit down with you to discuss any financial questions.
Get in TouchOver the decades, your home becomes a place for cherished memories as the good times you spend with family and friends only grow. At the same time, your home is also accruing financial value as your primary financial asset.
For most adults 75+, nearly 70% of their net worth comes from home equity. Unlocking that equity by selling a home can provide the liquid capital necessary to comfortably cover a community’s upfront entrance fee. When paired with regular monthly incomes such as Social Security, pensions, or investments, residents can establish a clear and sustainable budget.
Understanding All-Inclusive Healthcare and Amenities at Frederick Living
Nestled in historic Montgomery County, Pennsylvania, Frederick Living is a nationally recognized and award-winning CCRC. For over a century, we’ve been helping people make the transition to Independent Living, Personal Care, Memory Care, and Rehab Care.
Because caring is what we do best. From micro-communities focused on your hobbies all the way to spiritual, physical, and mental care, we’re dedicated to helping you make your next chapter the best to come.
As a non-profit organization, we follow a convenient and stress-free pricing model focused on you. Simply pay an upfront investment, select a home, and let the monthly maintenance fee cover your lifestyle and home upkeep.
Our wide range of exclusive amenities includes:
When making the choice for your next home, cost is a key factor in managing your comfort. For decades, you likely provided the lifestyle for your family. Today, when you choose a CCRC model, you have the benefit of a lifestyle built around your needs, with consistent assistance always available.
Ready to take the next step and get in touch with our team? We’d love to welcome you for a tour and discuss any questions you may have about life here as well as financing.
Betsy Natter, Storyteller for Frederick Living, brings a wealth of marketing and storytelling experience to the community’s team.