Worth Comparing

What does this place really cost?

Presbyterian Manors works closely with each prospective resident to fully assess all current home ownership costs. Many of those expenses (such as property taxes and homeowner’s insurance) are not required or, in the case of expenses such as regular maintenance and utility bills, are simply included in our monthly fees. Many of our residents have found that their living costs are equal to or even less than what they were paying while living at their own homes.

“Many seniors today perceive retirement communities as too expensive,” said Leslie Chaffin, corporate director of marketing at Presbyterian Manors of Mid-America, which operates 17 retirement communities in Kansas and Missouri. “They are saying, ‘I can’t afford it.’ And because of that view, we are seeing more seniors delaying the decision of whether to move. The truth is, retirement community living is affordable for many seniors. Still, very few take the time to assess their financial situations thoroughly and accurately.”

In fact, you might not realize that you spend more than you think you do while living in your current home. A 2004 study found that seniors ages 65+ had an average annual income of $21,6801. Another independent study² found that most seniors living in a home in the community spend an average of $1,935 every month in living expenses; that translates to $23,220 every year, higher than the average annual income. However, that figure includes only expected costs (i.e. food, insurance, taxes, utilities, etc.); it does not include potential costs³ such as:

Roof replacement ($5,000-$9,000), every 15-20 years
Paint ($3,500 avg.), every 5-10 years
Central air/furnace replacement ($4,000-$9,000)

In addition, numerous other house repairs and replacements can add up to thousands of dollars every year. Furthermore, ongoing maintenance tasks such as lawn mowing, snow removal, house cleaning, gutter cleaning and other chores continuously tax your time, energy and money.

According to the American Seniors Housing Association, costs of living at home for many seniors are “remarkably similar to those costs offered by quality independent living communities.” In 2005, seniors in retirement communities nationwide paid a monthly service fee ranging from $1,750 to $2,480 every month, or $21,000 to $29,760 annually³. Compare that to the average cost to live at home ($23,220 annually); the cost is essentially the same. Consider, as well, that the cost for all maintenance repairs are often included in the retirement community’s monthly service fee, meaning that you do not pay any additional cost for sudden repairs. The retirement community takes care of those repairs for you.

Furthermore, you should consider the investment you have in your home; accrued equity can be a valuable asset when considering the cost of a retirement community. By adding the equity gained from selling a home to your annual income, retirement community living becomes much more affordable.

Footnotes:

Employee Benefit Research Institute.
“Income of the Elderly Population, Age 65+, 2004.”
www.ebri.org
Moore Diversified Services, Inc.
“On The Move” Fall 2004
www.contractors.com

Back

Experience is everything

About Us | Communities | Giving | Site Map