4 Ways Retirement Community Can Cost Less Than You Think

Some older adults may be deterred from moving into a retirement residence because of the anticipated costs. What many fail to realize is that once retired, there are a number of expenses that are dramatically reduced or even eliminated altogether, decreasing the cost of retirement more than initially thought possible. Here are a few reasons why you may be able to afford retirement living after all.

Home Maintenance Costs Disappear

Living in your home is costly. If you rent, you are saddled with monthly expenses that take a huge chunk out of your fixed income or retirement savings. Those who own a home or condo have a number of fees associated with maintaining their residences, such as taxes and condo or homeowners fees.

When living in a retirement residence, utility costs may disappear completely, while food and travel costs can be brought down quite a bit. Retirement communities are geared at helping you live life a little more easily and affordably.

Lifestyle Costs Drop

By the time you reach the point in your life where retirement living makes sense, your luxury expenses tend to drop off as well. You may begin to spend less on things like brand new clothes, travel expenses, and even dining out. With the strong focus on community and keeping residents healthy and active, there are also plenty of activities that can be enjoyed either at your new residence or community or in the local community centres.

Government Tax Credits

A number government tax credits exist to help curb the costs associated with living in a retirement community. Two of the most commonly used ones are the Medical Expenses Credit and the Disability Tax Credit. The Medical Expenses Tax Credit can help pay for some of the costs of medical equipment or procedures.

Long-Term Healthcare Insurance

In some cases, there may be long-term healthcare plans that can help cover the costs of retirement living.