Why Affluent Retirees Are Aging in Luxury Communities
By Brian Famigletti, Managing Director & Head of Marketing
From Anxiety to Extravagance
For many wealthy retirees, aging has transformed from an anxiety to an extravagance.
Upscale retirement communities are emerging across the U.S., enabling seniors to live out their golden years in luxury. These facilities — also called “life plan” or “continuing care retirement communities” — often include high-end amenities like valet parking, gourmet meals, and even lectures from prominent professors.
The appeal of aging in luxury communities is obvious: they promise a long life of peace, comfort, and independence. But this lifestyle comes at a price. Upfront fees range from around $1 million to more than $7 million, and monthly fees average nearly $5,000, with the highest fees reaching well above $10,000.
A Proactive Approach To Aging
To many retirees, the high cost may well still be worth it. That’s because these luxury communities aim to be more than just a place for seniors to live, but also a comprehensive care plan for their later years.
By offering contracts to lock in costs, life plan communities provide residents a smooth transition from independent living to more gradual care, all without the financial unpredictability associated with traditional care options.
Additionally, these communities are often located near major universities to foster a social and intellectually stimulating environment, which research suggests can actually help people live better and longer.
They can also help ease the challenge aging can pose for loved ones, who may otherwise bear the responsibility of paying for and/or administering care.
Weighing the Investment
The decision to move into a life-plan community isn’t just a lifestyle choice. It’s also a financial decision. So how do you determine whether or not the return on investment will be worth it?
First off, it’s important to treat this question as you would any other retirement consideration, or major financial decision for that matter. In other words, be sure to act according to your individual needs and goals.
From a financial perspective, monthly fees for life-plan communities range well into the thousands, and can even increase annually. However, it’s worth considering monthly fees at typical nursing homes can also approach or exceed $10,000. And those arrangements don’t necessarily come with luxurious amenities, or the same social and emotional benefits.
At the end of the day, aging in luxury communities is like any other investment in your health and happiness. It certainly comes with a hefty bill, but for an increasing number of seniors, living out their golden years in a predictable and engaging environment has proven worth it.
Unsure whether a life-plan community is a worthwhile option for you or an aging loved one? Reach out to Griffin Asset Management today.
Sources:
WSJ: Wealthier Americans Are Paying Millions to Age in Luxury Campuses
Money Wise: Rich Older Americans Choose Life Plan Communities
