Considering a ‘Senior’ Community? What’s In It For You?

Here are some pros and cons of a senior community

By Deborah Jeanne Sergeant

 

The websites and brochures for senior communities show gray-haired people with a jaunty expression and loads of vitality living their best life.

But is it in your best financial interest and will it provide you with the best quality of life to downsize and move into a senior community?

Jeff Feldman, Ph.D., certified financial planner at Rochester Financial Services in Pittsford, said that many people who lack long-term care insurance think of senior communities as another alternative to long-term care.

“They think they can go into one of these communities as a backdoor way of obtaining that care but it’s not true,” Feldman said. “The owners of these communities are aware that a large percentage of people going into these communities expect to be taken care of. They won’t allow those with adverse health situations into these communities because they don’t want to take on their healthcare.”

Some facilities offer transitional levels of care, from independent living to assisted living and then full-time care in an on-campus nursing home.

But communities that offer independent living are the least expensive and offer the least amount of support. Landscaping, snow removal, and general building maintenance is usually all that’s offered for independent living.

Despite this, “it can be very expensive for people who want to go into these communities. They won’t get anything for free,” Feldman said. “You’re paying quite a bit to get that insurance component of communities that take you on when you don’t need assistance and progress on to more care as your situation requires it.”

When purchased as a young adult, long-term care policies are easier to afford; however, few companies offer them. And once someone’s over 55, the price is “prohibitive,” Feldman said. “You risk a situation where you can exhaust your assets paying for this care.”

He noted that New York protects retirement assets for people who need care.

“People requiring long-term care can sign up for Medicaid while the assets in their retirement fund can remain intact,” he said. “As far as how to protect yourself against the need for long-term assistance, there are no alternatives.

“The best advice I give to people is to try to look out for your own health.”

Keep up with doctors’ visits and follow their orders for medication and other protocols. Eat a balanced diet, exercise for 150 minutes weekly, socialize regularly, avoid tobacco and abusing drugs and alcohol. Sleep and de-stress sufficiently. Stay mentally active, learning new information often. All of these steps can help you stay vibrant longer.

 

The alternatives aren’t great.

Feldman said that in Rochester, the cost for a good quality nursing home is approaching $225,000 annually. That’s about $18,750 a month.

“People are trying to figure out how to get that care without paying for it,” he added. “Someone has to pay for it: either you or the government. Some are afflicted with illnesses or have accidents but those who have the opportunity to take care of their health, that to me is probably the best step to take in order to avoid a financial catastrophe.”

As for quality of life, he doesn’t often see many advantages to downsizing from a 2,500-sq. foot home to a senior community townhouse of 1,700-square feet. He has seen clients who actually pay more for the smaller place because they don’t want to perform maintenance like moving and snow removal, both tasks that they could hire someone else to do. Most older adults lack nearby family members who are willing to perform work like this.

Some older adults feel pressured to move into a senior community because of transportation needs since they no longer drive. Many senior communities are located near public transportation or have frequently used services nearby; however, Feldman sees ride share services like Uber or Lyft as one means of filling that need.

Sites such as GoGoGrandparent can help fill that need for people who eschew apps. Once signed up, the older adult can call from any phone—even a landline—and a live, 24/7 operator will connect them with services such as a ride and grocery and restaurant delivery for a fee, along with notifying a designated family member that the older adult is going somewhere. Speed dial services that do not require a live operator are also available.

“I’m not a big fan of senior living communities unless the attractive feature is the entertainment, pool area and activities,” Feldman said.

Most senior communities provide a common space for socializing like a “community room” for birthday parties and an outdoor space for enjoying nature and meeting neighbors.

For some people, kicking off their downsizing early can help them make more decisions about what happens to their stuff and who in their family gets what. They can also pass along things they no longer need to people who could really use it, such as giving a spare bedroom set to a grandchild who is just starting out.