What to Think About Before Moving to a Retirement Community
NEW YORK, December 2, 2022 (Newswire.com) - iQuanti: There are various social and financial factors to consider before moving into a retirement community. While the positives may seem alluring with many retirement communities offering benefits like idyllic scenery, activities, amenities, and a built-in social circle, it is important to take stock of your current situation first. Here are some questions to ask yourself before moving to a retirement community:
Is it a good lifestyle fit?
Many people opt to live in a retirement community because they want to enjoy a certain lifestyle. When considering different communities, see if their offerings are on par with your expectations. While everything on your wish list might not be possible, if you plan to make this investment, you might want to try finding something that checks most of the boxes. For example, if you want to be physically active, does the community provide enough opportunities for that?
Should you rent or buy?
While you might have been taught that buying is always better, there may be advantages to renting. If you rent, you may have less responsibility for home maintenance, which is helpful if you have mobility issues. Renting can also be a good option if you are not in a financial position to buy but would still like to enjoy the lifestyle that a retirement community provides. If you are committed to buying your home, you may want to see if the community allows you to "try before you buy" and let you spend the day or overnight in the community.
How does it fit with your budget?
Living in a retirement community can get pricey—they often have additional charges such as HOA fees. It can be helpful to get a complete list of the fees, so you know exactly what the monthly cost will be.
When evaluating monthly costs, it can be useful to look at all your sources of funding and think about the long-term possibilities. You may want to take stock of your regular sources of income, like retirement accounts and pensions. It can also help to look at alternative sources of funding. For example, do you have a permanent life insurance policy like whole life insurance or universal life insurance? You can borrow against the cash value of permanent life insurance for any reason, which may be helpful during market downturns when you don't want to withdraw from investments or accounts that rely heavily on the market; this can also help you manage taxes.
What are the transportation options?
Having accessible transportation options can make your experience at a retirement community much more convenient. If you have a car, check to see if the places you still need to go are within easy driving distance and if there's an additional fee to keep a car. If you do not have a vehicle, look into the other transportation options—there may be public transportation, or the community may provide regular shuttles to nearby destinations.
Do your research
Choosing whether to move to a retirement community is a big decision. Because it's such an important move, you may want to take some time to shop around before committing. Look at different housing types like condos, freestanding homes, or apartments to see which one feels right. Check out the weather patterns where you will be living. Speak to residents to see how they feel about the community. Compare prices. Moving out of a retirement community can sometimes be trickier than a typical move, so make sure it's right for you.
The primary purpose of permanent life insurance is to provide a death benefit. Using permanent life insurance accumulated value to supplement retirement income will reduce the death benefit and may affect other aspects of the policy.