The Cost Of Retirement Apartments in America VS. the World

Retirement apartments are an exciting new option for those retiring in the twenty-first century. Finding housing in the right price range and location is a major decision faced by all of us as we age. Housing and health care costs are two of the major costs incurred as we age. Yet all of us want to be sure we do not overextend ourselves with our housing decisions so that there will be enough discretionary income left to maintain our lifestyle and pursue our interests.

Some people want to stay where they are, while others want to consider a new direction and location. Do your research about retirement apartments while you are still working in order to make the most informed decision.

Retirement in the United States

These apartments provide an attractive and safe physical environment as we age. Since retirement apartments are part of continuing care communities, they allow their residents to stay within the same community even though their physical needs may change. This is accomplished by moving them to different housing more appropriate to their needs but still within the same retirement community.

When you make a decision to purchase a retirement apartment you become part of a continuing care community. Though these communities are set up in different ways, in general you must pay an entrance fee and a monthly fee. The entrance fee is approximately that of the cost of a residential home in that particular geographic area. For example, according to the New York State Department of Health, a beginning entrance fee for an independent unit for a single person is $115,000, and the monthly fee is about $2,100. According to the United States General Accountability Office (GAO), an entry fee for a Life Care Plan ranges from $160,000 to $600,000, while a modified plan ranges from $80,000 to $750,000. For this same Life Care Plan, monthly fees in the retirement apartments range from $2,500 to $5,400, while a modified plan monthly fee is $1,500 to $2,500.

Retirement Outside the United States

Retirement Costs in Mexico

If you are considering a retirement move to Mexico, the cost of living in retirement apartments in continuing care communities in Mexico can be only twenty percent of the cost in the United States. These costs must be paid out of pocket, however, as Medicare does not cover costs outside the states. For information that is more specific, read “Retirees Flock South of the Border for Savings”. One retiree blogs of paying only $1,400 a month for continuing care services in Mexico.

Retirement Costs in Thailand

Retirees to Thailand find the cost of living is very low. For example, the cost to rent a 3-bedroom luxury furnished apartment is about $3,750. Many older Thais live with their families so the continuing care community is in its infancy there. For this reason, American retirees who need assistance to stay in their apartments hire private duty nurses around the clock for very low costs.

Retirement Costs in Philippines

Retirement living in Costa Rica and the Philippines, like Thailand, is much less expensive than in the United States. Though Medicare does not apply, health services, including home care, is much less expensive. Money for these apartments therefore goes further and the quality of living can be better.

Wherever you decide to retire, it is important to start the decision making process early because of the complexity of the decision.

Retirement apartments within continuing care communities are a relatively new concept. Since the various communities are structured differently, it will take some time to do the research. It is less expensive to retire abroad, but financial considerations must be weighed against the reality of living at some distance from current friends and family.

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