By Belinda Hulin
Jacksonville travel writer Judith Martin isn’t planning to retire anytime soon. But between trips to research Barcelona architecture and Alabama barbecue, the 60-year-old divorcee has already started shopping retirement communities.
“It’s a way of making sure you can stay active,” says Martin. “Everybody starts slowing down eventually. If you live alone, there’s a lot of effort that goes into maintaining your existence. Living in a retirement community means you don’t have to worry about the cooking, shopping and housekeeping. You can reserve your energy for the things you want to do.”
Continuing care retirement communities—developments that offer everything from single family homes with minimal services to full-scale nursing care—are one of the hottest segments of the U.S. housing market. Generations-removed from your grandmother’s “old folks home,” these well-manicured campuses seduce active seniors with a siren’s promise of carefree living, resort-quality amenities and, when needed, easy access to medical services and daily assistance. As Martin notes, “It’s all the things you have at a great hotel--the pool, the tennis court, the dining room, the salon, the car service and the housekeeping—plus someone to help when your knees give out.”
A well-chosen retirement community can be an investment in ongoing mental health, as well as shelter. Today even mid-sized cities with a young demographic are likely to support several large retirement communities as well as smaller, more specialized senior complexes. Some may be affiliated with religious groups, while others cater to seniors with common interests. In the greater Philadelphia area, many retirement communities are affiliated with the Religious Society of Friends. Fleet Landing in Atlantic Beach, Florida attracts retired military personnel. There are retirement communities nestled into larger housing developments, so seniors can live near adult children or middle-aged friends, as well as retirement communities on college campuses, near artist colonies and near medical centers.
Such communities, as noted by the U.S. Department of Health and Human Services, have gained popularity because they provide a “continuum of care.” Able-bodied seniors make the decision to move to a house, condo or apartment in such a development while they’re still active, with the promise of being assured a spot in one of the onsite assisted living or nursing care units when and if that becomes necessary. A confluence of sociological and demographic trends has fueled the growth. First, there are Census Bureau estimates that the country’s elderly population will increase 65-percent by 2025. Combine that with the fact that people are living longer and—with adult children following their careers to far-flung places—are less likely to live near extended family.
“My children live in Canada, Colorado and Washington State,” says Winnie Young, an active 81-year-old resident of Vicar’s Landing in Ponte Vedra Beach, Florida. “If anything happens to me, my children don’t have to hop on a plane right away. That’s one of the things that I thought about before moving here. Also, when you’re living alone in a house, you think you’re going to be able to hire all sorts of people to take care of the things that need to be done, for both you and the house. Well, even if you can find people to reliably provide those services, the services keep getting more and more expensive.”
Young, a widow, gave up a house with a swimming pool in the exclusive Sawgrass community to move to Vicar’s Landing. Moving to a small apartment required “purging” her belongings to a manageable collection, but Young says she has no regrets. “I was tired of taking care of everything,” she says, adding that she loves the camaraderie of her community. “When you’re a single woman, it becomes more and more difficult to entertain and as a result, it becomes more difficult to socialize. Now, I can easily invite two couples to join me for a drink at our bar. And I’ve made the most wonderful friends here. I recently came back from visiting my brother in Michigan. A car picked me up at the airport, when I got here someone brought my bags to my apartment and I walked into the dining room. Well, it was as if I had this big extended family just waiting to greet me and find out about my trip. I absolutely love it.”
Of course, such convivial convenience comes at a price. Retirement communities have a wide range of payment structures, but most require an initial buy-in plus monthly fees. Some offer all-inclusive monthly payments, while others operate on a fee-for-service basis. Entrance fees can range from less than $10,000 to $500,000 depending on the age and health of prospective residents, as well as the size and style of housing they prefer, and the location and general amenities of the complex. Retirement communities that operate on a strictly fee-for-service basis offer some plans with no set monthly fees, however charges for home health care visits, dining room meals and housekeeping can add up. Average monthly fees for most retirement communities range from $1,000 to $4,000. Smaller digs in independent living units command a lower rate than more elaborate housing or accommodations in assisted living or nursing care buildings.
According to a recent Wall Street Journal article, residents in retirement communities generally have modest annual incomes from pensions or investments, but a net worth of more than $150,000. Residents generally sell their homes to fund retirement community entrance fees and to supplement investment accounts.
“Affording a retirement community can be tricky,” says Martin. “Most of us need our assets to generate income to live on in our old age. If you take a big chunk of that money to buy into a retirement community, that pretty much guarantees you’ll have less money to live on and do all the things you want to do.”
Both Martin and Young say people should give thought to moving to a retirement community while they’re still young enough to enjoy all the amenities and before they need all the life-care services. “I think people tend to wait too long to make these decisions,” says Martin. “They move after they’re disabled or need serious care, and they can’t take advantage of all the fun things these places offer. If you move to a retirement community because you’re forced to, that can be depressing. You want to enjoy your golden years, not feel like you’re waiting to die.”
[A version of this story originally appeared in Jacksonville Homebuyer Magazine.]
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