A financial expert and Financial Post columnist compares the costs of senior housing options including home care, long-term care and a retirement home.
A newspaper columnist recently contacted Amica to research an article on the cost of private retirement living. This wasn’t any reporter: it was Ted Rechtshaffen, a personal finance columnist for the Financial Post and the president and CEO of TriDelta Financial, a wealth management company he launched for Canadians looking for objective financial advice. He’s been named one of the Top 50 Financial Advisers in Canada by Wealth Professional Magazine. He’s also the son of a resident at Amica senior living.
Rechtshaffen’s column carried this headline: “Here’s what it costs to live in a retirement home — and the bottom line is less than you might think.” His article looks behind the monthly fee for a high quality seniors’ residence to debunk myths about the cost of private retirement living.
His aging clients often wonder if they can afford to live in a private retirement community, and how much extra in expenses they’ll pay. As he says, some seniors get “sticker shock” when they see that a nice residence costs $6,000 per month. “They wonder how they can suddenly add $72,000 to their annual expenses,” writes Rechtshaffen.
As the financial expert explains, it’s worth looking beyond the price tag to consider how moving to a residence for seniors would impact both your quality of life and your monthly expenses. (You can download this senior living financial planning worksheet to see how your finances compare with retirement expenses.) He says it’s important to consider these five factors behind the cost of retirement homes:
#1 Living at home isn’t free. Even if you have no mortgage, you may still be paying for rent, property taxes or condo fees, maintenance, utilities and food. Monthly expenses vary widely, but Rechtshaffen tallies how you’ll free up funds by moving out of a home. For more info, see six myths about the cost of senior living.
#2 How much does your lifestyle cost? You might be traveling, dining out, buying new clothes and spending on entertainment at age 70. By the time you’re considering a retirement residence you might be 15 to 20 years older: how might your spending change at 88?
#3 Get help from tax credits. If you’re paying for assisted living or a-la-carte health services in a private residence, these might be deducted from income under Medical Expenses or the Disability Tax Credit.
#4 You can tap multiple income sources. If you’re attracted to the high-level service, convenience and camaraderie associated with a good senior living residence, remember that you may have various sources of funding, including Canada Pension Plan, Old Age Security, RRSPs/RIFs and more.
#5 Will your long-term care insurance cover some costs? Some people carry this kind of insurance, which can help if you find yourself needing assistance and care as you age.
Read the full article by Rechtshaffen to find a list of key issues to consider for your own retirement situation. You can also see his table comparing typical costs associated with living at home with private care, living in a private retirement residence and living in a public nursing home. Living at home with full-time care could wind up costing more than you think, while living in a decent retirement home can offer comparatively great value. Check out the article to see the surprising math behind common senior housing options.
It one of the most tested and long-living medicals on the market using Cheap Levitra.
Reproduced from Amica Conversations.