You’ve worked hard to build up your retirement savings, and now’s the time to make a plan to ensure your savings last a lifetime. What can you do to protect your retirement savings while providing for your needs in the years to come? Consider the benefits of a Life Plan Community with a LifeCare® contract, which allows you to secure future healthcare at today’s pricing levels.
With the price tag for senior care on the rise, it’s easy to burn through your retirement savings faster than you’d anticipate. According to a report by RBC Wealth Management, the average lifetime projected healthcare cost is over $660,000 for a 65-year-old couple in retirement. Also keep in mind that the cost of long-term care can run more than $100,000 per year for a private room, according to Genworth Cost of Care Surveys.
A Smart Plan for Your Finances and Your Future
Life Plan Communities — also known as Continuing Care Retirement Communities (CCRCs) — typically have an entrance fee and monthly fees that are based on the type of residence and type of contract you choose. Communities with a Type A LifeCare contract make retirement planning simple and concise with a monthly fee that doesn’t change significantly when your healthcare needs increase, which gives you the freedom to enjoy retirement without worrying about outliving your savings.
The entrance fee can be a significant financial hurdle, but it may be more affordable than you think when compared to the costs of paying for long-term care in a rental community. Let’s explore why choosing LifeCare is a good investment and the best way to secure your future in retirement:
A Contract with Lifelong Benefits
Although the contract details can vary from one community to another, a LifeCare contract typically includes priority access to a continuum of care for your lifetime. The contract specifies what services are covered and how much the resident will pay for those services when needed. Many Life Plan Communities also cover financial support if a resident exhausts their assets through no fault of their own.
An Entrance Fee That Locks in Pricing
With a LifeCare contract, you can expect to pay higher upfront costs in exchange for predictable rates for healthcare costs now and in the future. An entrance fee is a one-time, upfront fee you pay to move into a independent living community. The amount of your entrance fee depends on the size of the residence you choose and the number of people living in the residence. The entrance fee is often fully or partially refundable to you or your estate when you leave the community for any reason.
One Monthly Fee That Replaces Multiple Bills
Senior living communities generally charge a monthly fee that includes your residence and an array of services and amenities. Your monthly fee also covers lawn care, landscaping and snow removal, and typically covers all utilities and many additional services like housekeeping and 24/7 security. When you compare the monthly fee to the stack of bills you regularly pay to maintain your home, you’ll see why an all-inclusive Life Plan Community is so appealing. In addition to maintenance-free living, residents enjoy a range of life-enriching amenities and activities.
Predictable Future Healthcare
LIfe Plan Communities with LifeCare contracts typically cover all or most of your healthcare costs at the community, regardless of the level of care you require. They provide security and peace of mind that you won’t be surprised by high fees if you ever need assisted living, memory care, short-term rehabilitation or skilled nursing care. You and your family can also avoid the costs and stress associated with having to move unexpectedly from a senior rental apartment to a community that offers assisted living, memory care or skilled nursing care.
Potential Tax Breaks
The tax advantages associated with moving into a senior living community may also provide additional financial benefits to you. A portion of community entrance fees and monthly fees could be tax-deductible, and certain tax deductions also apply to veterans and/or their spouses. Consult your tax advisor for details about how this may apply to your personal situation.
Flexibility for Changing Needs
The monthly costs are usually lower at a rental community with a fee-for-service model. However, a rental option often ends up being more expensive if you experience problems with your health or mobility down the road, and possibly need to move multiple times to get the long-term care you need. That’s why choosing a Life Plan Community can save you money and give you peace of mind that any future healthcare will be provided in a familiar place by care providers you know and trust.
Financial Security for Your Future
Don’t wait to move to a senior living community until something in your life changes and the decision becomes inevitable. Making the move sooner rather than later can minimize the burden on your family and help you save money by locking in today’s pricing. This is a decision you want to make on your own terms and while you’re healthy enough to take full advantage of everything a community has to offer.
Discover an Exceptional Value in Senior Living
Moving to Brandon Wilde is a sensible investment that protects your retirement savings and preserves your assets for the future. Our LifeCare contract offers clear and easy-to-understand financial options with predictable monthly payments to fit your budget. As you consider your next steps, feel free to contact us to ask questions or request additional financial planning information. We’re here to help you explore options and compare the costs with your unique needs and financial situation in mind.