Overwhelmingly, retiring Americans want to age in place or at least in their communities. However, the question becomes, “Do I move to a senior living community or downsize to a cheaper home?”
This decision is not just about the money, you need to consider your quality of life while in retirement.
When you are deciding whether to stay where you are or moving, you must consider all factors. Let’s look at some of the factors that you should consider before making a final decision.
Retirement living: do you live in a Peter Pan home?
Coined by a University of Southern California professor emeritus of gerontology, a Peter Pan home is one built for people who will never grow old. These houses typically have multi-levels or at least stairs, narrow hallways, inaccessible bathrooms and inadequate lighting. They are not designed to prevent falls or provide independence no matter how old you are.
If your home checks off most of these items, you have a Peter Pan home. That does not mean that you cannot make alterations to your home to support yourself during retirement. It does mean it will likely cost more than if you are living in a one level, ranch style house.
Most of the homes in this country do not support aging in place. Therefore as people age and their needs change, their homes become a barrier to their independence. If the construction costs are so massive in order to make the home “user friendly”, it might make more economic sense to move. If the construction costs are in line with what you have to spend to make the necessary modifications, then aging in place might be the sensible tack to take.
Can you afford home health care costs?
The median nationwide cost for assisted living in 2024 was $4,495 per month according to A Place for Mom’s 2024 Cost of Long-Term Care and Senior Living Report. Particular parts of the country vary wildly therefore the $4,495 number can be either higher or lower depending upon where you live.
The national median cost of in-home care was $30 per hour, or $5,720 per month based upon 44 hours of care per week. That is a $725 difference in cost per month between the two forms of care.
While $725 per month may not seem like a large sum of money, don’t forget about the cost of home maintenance, utilities, taxes and insurance that must be added on to the cost of living in the home.
When deciding upon staying where you are or moving, evaluate your proximity to hospitals and doctors, pharmacies and if necessary, public transportation.
What will give you the best quality of life in retirement?
From loneliness to accessibility to hobbies, culture and entertainment, deciding whether to age in place or move goes beyond bottom line costs. You have to factor in how your quality of life will be impacted if you leave behind the home or community to which you have accustomed to.
This is true if you have a network of friends, family and support in your current location. Will you have the same if you move? What about social interactions? Do you crave the companionship that can often be found in a retirement community or do you prefer to maintain the relationships you already have?
Don’t forget about your lifestyle and hobbies. If you move, will you still have access to all the things that you enjoy? Downsizing to a less expensive home to age in place may seem like a cost saving move but if you are spending hundreds to dollars to fly across the country to see loved ones or fall into a depression because of what you are now lacking, is that worth it?
The decision to move or not to move can be one of the most important decisions that you will make in your life. What we recommend is to take the time to evaluate your options, talk to family, talk to friends, talk to your financial advisor and then make an objective, intelligent decision.
Retirement Solutions has for over 40 years, helped clients make decisions about where to live during retirement. We offer a no cost, no obligation consultation to allow you to ask questions regarding your particular situation. You talk, we listen. Simply click the “Schedule a Consultation” link in the upper right corner of the home page of the website.