There’s nothing quite like the feeling of your first day of retirement. But it’s the days (and years) leading up to that day that make it all the more fulfilling because of the work you put in to make retirement a reality for you. Part of that reality is knowing the answer to complicated questions.
How much do you need to retire and live comfortably without a paycheck? How can you plan for the potential changes that may come down the road? In answering these questions, you’ll be able to better determine where you want to spend your retirement and secure proper care for yourself as you get older.
To help you develop a retirement plan that you can feel confident about, let’s explore the retirement options available to you and determine which of them best suits you.
How Much Do You Need To Retire?
The cost of retiring is different for everyone and can vary from one region to another. Seniors retiring in Texas will want to consider the unique costs of living associated with different cities, as well as the level of luxury they desire in their environment. For example, maintaining the lifestyle you’re used to in a luxury senior living community in bustling cities like Austin may carry a heavier cost, and you’ll need to determine how you’ll plan your retirement finances to accommodate your needs.
Before you start planning your future and diving into the details of where and how you want to spend your retirement, answering these four questions from the American Association of Retired Persons (AARP) can help set the stage for a successful process.
- How much will you spend?
- How much will you earn on savings?
- How long will you live?
- How much can you withdraw from savings each year?
Retirement Planning Considerations | Cost of Retiring at Home
Not every retirement plan includes transitioning to a retirement community. Many older adults choose to remain in their home, especially if they’ve already paid off the mortgage. However, even if the mortgage is paid off, the cost of home insurance and taxes will need to be accounted for in your overall budget. The cost of retirement will also include expenses related to your lifestyle, from dining to travel, but other unknown variables like future health and well-being can be harder to estimate.
Considering that upwards of 70% of seniors over 65 will need long-term care at some point in their lives, understanding your options for in-home care is an important financial aspect to plan for in retirement.
One potential care solution for seniors living at home can involve in-home health aides. But, according to data from Genworth, the average monthly cost of a home health aide in Texas is approximately $4,576. The AARP estimates that more than half of adults aged 65 with additional care needs will need to seek out paid services, with approximately 14% of those adults requiring more than two years of paid care. Those who pursue traditional Long Term Care Insurance (LTC) can potentially mitigate some of these down-the-road costs, but at a monthly premium.
The Cost of a Retirement Community | Consolidating Expenses
Moving to a senior living community is a popular choice for seniors who prefer to leave the hassle and expense of home ownership behind. Moving to a Continuing Care Retirement Community (CCRC) allows seniors to downsize their living space while upgrading their social life, making a variety of luxury services and amenities available to them.
A CCRC is an opportunity to maintain your independence while ensuring that you have long-term care options available to you when and if needed, from skilled nursing to memory care.
No discussion of a CCRC is complete without covering the associated costs. To begin with, a CCRC will require an entrance fee, which can vary depending on the types of amenities and services provided. CCRC retirement community entrance fees can range anywhere from $100,000 to over $1 million, in addition to a monthly fee that is inclusive of many utilities, amenities, and services. It’s important to explore your options and find the retirement that best suits your lifestyle and your financial means.
Prepare for Retirement with Querencia at Barton Creek
Maintaining your independence is an essential element of living at Querencia, a CCRC and upscale retirement community in Austin, Texas. Our community is dedicated to keeping residents active and engaged. When you sign a Type A Life Care contract with Querencia, you become part of a community where you’ll be surrounded by friends and neighbors and have a variety of amenities and services available to you. It’s about making your senior years as fulfilling as possible.
Life Care at Querencia also means guaranteed priority access to a complete continuum of care, from rehabilitation to assisted living. If and when you need a higher level of care, the convenient and compassionate support you need is right here in the community where you live.
There is a one-time entrance fee for living in the CCRC at Querencia, in addition to monthly ongoing payments that cover the cost of the community’s services and amenities.
Get In Touch Today & Start Your Austin Retirement Planning Today
Whether you’re looking for a place to retire for yourself or someone you love, don’t miss out on all that Querencia has to offer. Contact us today to learn more about our community!
