It takes a (retirement) village. Or does it?
January 18, 2014 3:32 PM Subscribe
My dad-in-law and his wife are getting ready to chunk out the $ to move into a retirement place. I'm looking for input about these kind of "all inclusive" retirement places, their financial setups, and possible alternatives for them.
posted by ecorrocio to Work & Money (22 answers total) 8 users marked this as a favorite
My wife's dad (83) and his wife (67) are planning on moving to a retirement "village". It's basically small apartments in a hotel-like setting with dining and amenities provided (pool, fitness area, some services etc.). The way these places work is that they require a large entrance fee (in this case $250,000) and then you pay monthly rent as well ($3K/mo). The fee is 90% refundable when they give up the place -- though it has to be secured to new owners before the $ is refunded. Demand is fairly high right now. We toured it today. It's a nice place. As I said, a lot like a fairly nice big hotel. Overall, it's pretty expensive, but they can afford it (just) and would not have to worry about any upkeep, utilities, maintenance, security etc. There is also available basic assistance and transportation in the retirement facility (slight extra $). There are also other buildings that provide assisted living and nursing care. They'd have to move out of one and into the other if that's what they needed. They seem convinced this is the way to go. Father-in-law's health is declining, and his wife is not terribly capable of looking after him as this happens. Also, I'm sure he wants her provided for after he's gone. She could stay there as she would continue to receive his pension. The place appears to have a clean track record.
All well and good, but just to do due diligence, I'm wondering what the alternatives might be. They're in a 3 bedroom, 2-story house now, with yard etc. They do not want to continue with it. Perhaps they could move to a low maintenance townhome for about the same $250K, and use what they would have been paying in rent to hire in services as needed? That way they'd own the place 100% and not be beholden to refundable fees (which I'm leery of). They'd have more upkeep and more to manage, and would not have the "community" the retirement village supposedly has.
Does anyone have experience on either end of this type of place? Or with alternatives?