There are two questions that almost every adult has asked themselves at one point or another in their lives: “When do I need to start saving for retirement?” and “How much do I need to save?” It’s never too early to start saving for retirement, but the question of how much to save varies from person to person. There are a number of different factors to consider, including where you want to spend your retirement and how you want to be taken care of as you get older.
Here is what you need to know and consider as you plan for your retirement.
How much do you need to retire?
There is no magic formula for figuring out how much you need to retire. But the American Association of Retired Persons (AARP) has the next best thing: a list of four primary factors to consider when planning for your life in retirement.
- How much will you spend?
- How much will you earn on savings?
- How long will you live?
- How much can you withdraw from savings each year?
The cost of staying home for retirement
Here is another question for you: “Where do you want to spend your retirement?” For some older adults, the answer is simple. They want to stay where they are. They’re often comfortable in the place they’ve called home for years, perhaps where they raised their families and made countless memories along the way. Retirement is about comfort, and if you’re most comfortable in the house you’re in now, then you don’t have to move if you don’t want to.
But there are always costs to consider, even if you’ve already paid off the mortgage. Think about your health and well-being as you enter the later years of your life. The U.S. government reports that 7 out of 10 older adults will require long-term care at some point in their lives. That often means securing long-term care (LTC) insurance, with monthly payments ranging from $200 to $500. And if you do need to hire a home health aide, Genworth estimates that the average monthly cost for their services is approximately $4,576.
The cost of a retirement community
Perhaps the answer to “Where do you want to spend your retirement?” is a Continuing Care Retirement Community (CCRC). A CRRC is a popular choice for retirement living among older adults because it allows them to downsize from their current home and settle into a community where they can have a rich social life, taking advantage of communal living and all of the services and amenities available to them. Additionally, a CCRC can provide them with access to the long-term care that they may need, all from the comfort of their new home.
To live in a CCRC like Harbour’s Edge, you will likely be required to pay a one-time entrance fee that serves as a down payment on your new home. Ranging from $100,000 to over $1 million, entrance fees also cover the cost of your continued care as you age. The entrance fee for your specific community will depend on the location and the services and amenities offered. Once you have moved in, there will be a monthly fee, as well. Those payments are generally a few thousand dollars on average.
The benefits of retirement living at Harbour’s Edge
Harbour’s Edge is a CCRC in Delray Beach, Florida, that offers a Type A Life Care contract. What does that mean, exactly? It means you are taken care of. Each of our Life Care community residents has access to our independent living services and amenities, from housekeeping and dining to fitness and social activities. All of the luxuries you deserve in your retirement years. Most importantly, Harbour’s Edge provides access to additional levels of care, including skilled nursing and rehabilitation should your health needs require it as you get older. Not only will you be able to live an active and engaged lifestyle, but you’ll be taken care of while you do it.
There is, of course, a one-time entrance fee and ongoing monthly fees. But it is worth pointing out that part of those fees may be tax-deductible, though you should consult with a tax adviser regarding that.
Plan your retirement at Harbour’s Edge
There are a number of senior living options in Palm Beach County, but none like Harbour’s Edge. Come see for yourself what luxury retirement living looks like. Contact us today!