The Complete Guide to the Costs of Retirement Living

Navigating the world of lifestyle and care communities for older adults can feel overwhelming, especially when faced with rising costs, complex options and pressure to make the right decision for yourself or your loved one. The facilities can also look very different, depending on the services offered. Some focus on luxurious amenities and wellness programs, while others promote independent living.

We’ve created this guide to the costs of senior living to help bring clarity to the process so you can move forward with confidence.

What does community-based living for older adults include?

Most older adult communities aim to remove day-to-day stress while supporting independence and personal well-being. While offerings may differ slightly from one facility to the next, here’s a breakdown of what’s commonly included:

Core services

The core services are the foundational offerings of older adult communities:

• Delicious meals: Many facilities provide meals daily in a communal dining hall. This can help support nutrition while also encouraging social connection.
• Utilities and basic services: This is when electricity, water, trash removal, internet or cable are bundled into the monthly cost, so budgeting is more predictable.
• Housekeeping and laundry: Weekly or biweekly housekeeping services help keep living spaces clean and organized. Laundry services may be included or offered as an optional add-on.
• Social and enrichment activities: From art workshops and book clubs to movie nights and group excursions, many communities provide daily opportunities to engage, learn and connect with others.

Support and safety features

For individuals who need extra help with daily tasks, support services can be tailored to meet changing needs. These may include:

• Assistance with bathing, dressing or managing medications.
• On-site staff available around the clock.
• Emergency response systems in each living space.

Optional add-ons and personalization

Every resident’s lifestyle is unique, so some communities offer flexible add-on options:

• Transportation: Schedule trips to local shopping centers, medical appointments or faith services.
• Concierge services: Receive support for errands, tech setup or coordinating deliveries.
• Guest accommodations: Overnight suites or extended stay options may be available for visiting family and friends.
• Pet-friendly policies: Many communities welcome pets, though conditions or fees may apply.

Cost breakdown by living type

Understanding the average cost of senior living facilities is crucial for effective planning. Here’s how prices differ for various community types:

Independent living

Independent living is ideal for older adults who want the freedom of a low-maintenance lifestyle with access to amenities: 

• Cost factors: Prices vary based on location, unit size and services offered. 
• National averages: The average cost for independent living is around $3,000 monthly.
• What’s included: Most communities include housing, basic utilities, meals, housekeeping, activities, and access to fitness or wellness programs. 
• Pricing models: Communities may charge monthly bundled rates or offer à la carte pricing for specific services.

Assisted living

Assisted living supports individuals who need help with daily activities such as bathing, dressing or medication management.

• Cost factors: Prices are influenced by the level of personal care required, location, apartment size and amenities.
• National averages: The average monthly cost for assisted living is around $4,800, while the average cost of assisted living for a couple will be well above this amount, depending on the state.
• What’s included: Basic room and board, meals, personal assistance, recreational activities and housekeeping are typically included.

Memory care

Memory care is for individuals with Alzheimer’s or other forms of dementia.

• Cost factors: Staff training, safety measures and specialized programming are part of the reason why this route can be costly.
• National averages: The cost for care varies, but it can be around $3,656 to $5,395 per month, depending on the individual facility.
• What’s included: Secure housing, meals, round-the-clock supervision, memory-stimulating activities and individualized care plans are available.

Skilled nursing care

Skilled nursing care is for individuals who need continuous medical attention or rehabilitation services following illness, injury or surgery.

• Cost factors: Pricing depends on the intensity of care, staffing ratios, facility quality and geographic region.
• National averages: A semi-private room averages $8,200 per month, while a private room could cost more.
• What’s included: Medical care, medication management, meals, nursing support, and physical or occupational therapy are generally included.

Continuing care retirement communities (CCRCs)

CCRCs offer multiple levels of care in one setting. This means that residents can transition between different models as needed.

• Cost structure: The facilities typically require an entrance fee, which often starts at around $115,000, and then a monthly fee starting at around $2,100.
• Contract types: Options include non-refundable, partially or fully refundable entrance fees, depending on the community’s policy.
• Long-term value: While the upfront costs are higher, CCRCs can offer peace of mind and stability for residents who prefer to age in place.

Key factors that affect pricing

The cost of community-based living varies significantly based on several factors. Understanding these can help you better evaluate options and budget accordingly.

1. Geographic location

Where a community is located plays an important role in determining its cost. For example, urban settings tend to be more expensive than rural areas due to factors such as real estate costs.

2. Level of care required

The amount and type of assistance you need directly influence costs. Independent living options, which offer minimal assistance, are generally more affordable. In contrast, memory care units, which are designed for individuals with cognitive challenges, require specialized staff and security measures, leading to higher expenses.

3. Amenities and services

Communities offering various amenities such as fitness centers, gourmet dining and cultural activities can have higher monthly fees. While these features enhance the experience, they also increase costs.

4. Type and size of accommodation

The size and style of your space affect pricing. Larger units or those with premium features can be more costly.

Paying for community living: Funding options and strategies

Understanding the various funding options available can help you make informed decisions for your financial situation. Here are some of the ways you can pay to live in a community for older adults:

• Personal savings and investments: Many individuals use personal savings, retirement accounts and investments to fund living arrangements. 
• Social Security and pensions: These income sources can help offset housing and service fees.
• Medicare and Medicaid: Depending on state guidelines, Medicare or Medicaid may assist with your needs.
• Long-term care insurance: These policies cover care services for home or licensed communities.
• Life insurance: Some policies offer “accelerated death benefits” or cash value withdrawals.
• Loans: Short-term loans help cover expenses while waiting for a home sale or benefits approval.
• Selling a home: Proceeds from selling a primary residence can fund entrance fees or subsidize ongoing costs.
• Department of Veterans Affairs (VA): The VA provides financial assistance to eligible veterans or surviving spouses to help with costs.
• Tax deductions: Some of the monthly expenses may be tax-deductible. You’ll need to consult a tax professional for eligibility.
• Financial planning: Working with a certified financial planner can help you create a realistic budget and explore available funding resources.

Garden Spot Village: A local option

Garden Spot Village, located in New Holland, Pennsylvania, is a 55 and over community designed to enrich the lives of older adults. With a focus on active, independent living, we offer a range of housing options, including the Sycamore Springs neighborhood at Garden Spot Village.

Residents enjoy green spaces designed for connection and abundant opportunities to live purposefully. From woodworking and gardening groups to international volunteer trips, Garden Spot Village supports physical, emotional and spiritual well-being.

Make a comfortable transition with Garden Spot Village

Understanding the differences between care types, the financial implications and available funding sources equips you to make the best choice for yourself or a loved one.

Garden Spot Village stands ready to support your journey, offering purpose-filled living in a vibrant, supportive community. Contact us today or download pricing to discover how life can be rich, connected and full of opportunity at every stage.