Did you know that the number of Americans ages 65 and older is projected to increase from 58 million in 2022 to 82 million by 2050?(1) And life expectancy has been on the rise for decades thanks to advancements in medical technology and healthier lifestyles. Specifically, the average life for an American rose from 68 years in 1950 to 79 years in 2019.(2) This shift in demographics has allowed the senior living landscape to evolve, encompassing greater flexibility to accommodate all forms of lifestyles. With the surge in senior living options available today, it is time to rethink our retirement years.
Being retired does not need to mean slowing down. Moving into an independent living facility relieves you of household chores and responsibilities—allowing you more time to spend on activities that you enjoy—and provides an expanded social community. This is critical as studies show loneliness increases the risk of premature death by 45%.(3) Engaging with others also stimulates mental agility and creativity which can boost longevity.
While most people move into a retirement community when they are in their 70s, the average age for senior living is trending even earlier given the ample amenities available at these facilities. And this wide range of options is ever-expanding to suit unique interests. On Top of the World in Ocala, Florida is tailored to those who wish to continue their fitness journey. Lake Weir Living offers residents the opportunity to enjoy their Harleys, hot rods, RVs, boats and other vehicles with few restrictions. Escapees CARE is a community located in Livingston, Texas that caters to RV travel buffs. Continue to enjoy life on the road while taking advantage of medical and nursing care needs as they arise.
Whatever direction you take, be sure to visit these facilities in person and ask questions. Speak with staff and residents. Importantly, do not wait until a crisis occurs to make the transition. It takes time to make an informed decision and it is far more challenging to downsize and transition from your existing home during a health event. You should also be aware that many of the most desirable facilities have waiting lists—and require you to be healthy when you enter—so do your homework!
Of course, cost is one of the most critical factors to consider when doing your due diligence. Given the vast array of options, one can imagine the variance in price among these facilities. Understand what you are paying for to find a price point that is in line with your budget. Some monthly fees do not include meal plans, housekeeping services or utilities so be sure to closely review the contract.
Given our increased life expectancy, it is important to work with your financial planner now to ensure that you have sufficient assets to adequately fund your retirement needs. Maintaining a certain standard of living based on these added years may require some financial planning adjustments in your early years. Your advisor will guide you to be strategic and focused to make sure you stay on track to meet your retirement goals, whatever they may be. As of 2022, while 87% of Americans aged 60 or older have some retirement savings, only 52% are on track to save enough to fund their final years.(4) Studies find that financial stress can have a negative impact on our physical and mental well-being, so take steps now to build a plan to optimize your future retirement lifestyle.
Sources:
1-www.prb.org/resources/fact-sheet-aging-in-the-united-states/
2-www.aarp.org/health/healthy-living/info-2017/50-ways-to-live-longer/
3-www.health.harvard.edu/blog/why-life-expectancy-in-the-us-is-falling-2022
4-www.fool.com/research/average-retirement-savings/
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