The cost of senior living can vary greatly depending on the type of retirement community you are moving into. The cost at some CCRCs can run into six figures making it unaffordable to most people. For example, the average entrance fee for some Continuing Care Retirement Communities is about $414,722, (Kiplinger).
Although the entrance fee may secure lower rates for any care you may need, paying one might mean you’ll have less money to do the things you want while you are able to. In addition, you may remain healthy and need little or no care. Which is why this type of community is not for everyone.
A rental senior living community (or a community that offers monthly rent or leases) is the least expensive path to downsizing. After all, there’s no up-front cost to pay beyond the security deposit, and the monthly fee is straightforward. In addition, you may remain healthy and need little to no care.
Bottom-line: if you are comparing the cost of living in a rental retirement community vs a buy-in, make sure you know what is important to you. Prioritize your needs and wants when researching places and spend time in them. After all, until you’re there, it can be very difficult to know if the community is a good fit for you.