There is a major shift with the baby boomer generation, where massive numbers are seeking retirement options all at once. With our government still catching up to this and the large spectrum of retirement homes that range from incredibly independent and uplifting to overpriced communities that feel more like a prison – it can be difficult to know the right move. If you are considering moving yourself or a loved one into an over 55 community, use this guide to weigh out the pros and cons.
The 7 disadvantages of 55+ communities that we should talk about are:
- Higher rates of depression and suicide
- High costs
- Lack of privacy
- Many get lonely even with the lack of privacy
- High turnover in underpaid caretakers
- No exposure to children, teens, adults, or age diversification
- The HOA (Pro or Con)
We will cover both sides of this argument so you can make an informed decision about whether the 55+ community is your best option.
We will also cover the pros, cons and questions to consider in choosing your community, and alternatives. Read through these insights to determine if this is the best option for you, or if there is a better way to spend your golden years of freedom!
Aging can be a difficult season of life for many individuals if enough thought is not put into planning every step of it. With adequate planning, though, one is ensured a very smooth process.
Firstly, we would like to note that if you or a loved one is in need of special care, you may be better suited to assisted living or simply applying for home care or hospice.
If, however, you are:
- In good health
- Over 55
- And have reached a point where you are weighing out your retirement options
The 7 disadvantages of 55+ communities that you should consider and we believe more people should be talking about will include but not limited to the following:
Higher Rates of Depression Among Potential Retirees
The peak age for a higher likelihood of suicide is between the ages of 45-64, and “20% of older adults and up to 37 percent of nursing home residents suffer from depression, a condition that may lead to suicide,” according to the American Foundation for Suicide Prevention.
Additionally, according to the American Psychological Association, 25% of those over 55 suffer from a mental disorder.
If you’re approaching or have passed retirement age, it might not be the best time to make a major life shift by moving out of your home. However, a change might also be just the right thing to help you jump into a new way of living, so make sure you take this advice with your own personality and experience in mind.
55+ Communities Have High Costs
Of course, the cost ranges widely from facility to facility, but it is difficult to find a community that is cheaper than your standard home. 55+ communities can easily cost thousands of dollars monthly.
Some of the expenses you will experience as a member of an over 55 community may include:
- Entrance fee (which could be thousands upfront)
- Monthly fees which may include, HOA, Insurance, community upkeep
- Taxes
And if you require any live-in care or personal assistance, this will be separate.
Many people do not have the retirement funds to spend on the extras of community living when there are so many more affordable ways to get the most out of life.
Some people are paying extra for amenities that they are not getting any use out of, and there’s often no price-lock available, which means that you have no guarantee of your monthly rates staying the same. With the great influx of baby boomers, we can almost guarantee it will go continue to go up in price.
55+ Communities Lack Privacy
You may enjoy having neighbors to be close to and get familiar with, which is certainly one of the most convincing ‘pros’ for having a community at all.
But if you enjoy your alone time, don’t want nosy neighbors that are too close for comfort, or you just appreciate having your own space to do in what you want, an over 55-community might not be your best option.
These communities are often about getting people together with scheduled events and physical activities to keep you busy in your retirement. However, if you want to do your own thing, this won’t be the place to do it.
55+ Communities Can be Lonely Despite Community
Many over 55 that get put in a community feel it was done against their will. Perhaps your children are pushing you towards this solution, but it is not what you want.
Many people report feeling lonelier than ever once joining this so-called, ‘community,’ because they feel isolated from their friends, family and rarely get visited by the people they want to see most.
These studies show the seriousness of loneliness:
- A 2012 Study, “that tracked over 6,500 elderly men and women over a seven-year period in the United Kingdom reported that the lack of social contact leads to an early death, regardless of participants’ underlying health issues.”
- In a study done by the University of California, they found that “43% of all seniors surveyed reported that they felt lonely, yet only 18% of those seniors lived alone. The remaining 25% lived in nursing homes or received in-person care.”
The loneliness is real despite your lack of privacy, a packed schedule of activities, or the supposed ‘community,’ you are supposed to feel. Like being lonely in the middle of a party, you might feel surrounded by buzz and people but never more isolated.
The loneliness is measurable and present in these homes and should be considered in your decision-making process. You may end up feeling here than you do at home.
55+ Communities Have High Staff Turnover
Since many of the staff members are making minimum wage and the hourly wage for a caretaker in an over 55-community is between $11-13, there is high turnover.
An ‘Alarming Statistic’ shows that, “According to the Home Care Bench-marking Study over the years, the median rate of caregiver turnover has been on the rise from 39.4% in 2009 to an alarming 65.7% in 2017.”
That is an over 25% increase in turnover because caretakers feel overworked, unsatisfied with working conditions and environment, as well as their salary.
The turn over can take its toll and be difficult to get attached to any one member of your community, with turnover rates steadily on the rise. Many elderly report being treated badly by their caretakers, and this is another vicious cycle that leads to more negative-light being shown on the over 55 communities and healthcare.
55+ Communities Have No Age Diversity
When people move into these communities, they often report a somberness that they didn’t anticipate feeling because there are no young people around.
They miss seeing children play, parks with kids running, families biking together, teens being active, and even couples in their 20’s to 40’s.
You might take for granted how nice it is to experience youthfulness and that lightness of energy, because inside – we’re all just big children.
Perhaps you’ll want to keep yourself around that kind of jovial influence to keep your heart light and limber. Along with the high depressive rates and unsatisfied employees with high turnover, you may feel happier staying where age diversification is the norm.
55+ Communities have HOAs
55 Places has written a piece called, “Why Is It So Hard to Find Active Adult Community HOA Fee Information?”
It is difficult to find and also expensive. You will pay for HOA amenities in your monthly fees which will cover things like:
- Activities on the calendar
- Amenities like swimming pool, golf courses, theaters, and maintaining them
- Gardens and area landscaping
- Safety cameras, gates, and lighting
If you are comfortable paying these fees, then this does not need to be considered a ‘con’ against over 55-communities. However, many people don’t appreciate high fees for activities they don’t want to be apart of or amenities they’re not utilizing.
It’s like paying school taxes when you’ve never had any children. It rubs some people the wrong way, so we are including it here so that you can be aware of high HOA fees and decide for yourself if it’s an advantage or disadvantage of these retirement communities.
Regardless, you will have to run all home improvement ideas by the HOA if you want to paint your house, alter your landscape, or make any decisions that could affect the community’s property value.
Advantages of 55+ Communities
We realize it’s not the title of the article, but it’s only fair to cover both sides of the argument. To quickly understand some of the advantages which might sway your decision either way, here are the ‘pros’ of an over 55-community:
- Low maintenance – You are taken care of with the HOA and monthly fees, so there is little for you to worry about in terms of upkeep.
- Local Amenities – Amenities are in close proximity and walking distance! They typically have a resort-like feel, and many of the more active retirement homes are actually quite upbeat and high-spirited. Not all of these homes are depressing despite statistics, but it will usually cost significantly more to live in one that feels like a private getaway.
- Community and People – It can be difficult to make friends at any age group once you get off the playground. This allows an easy way for you to meet others in your age group and bond over your life experiences. It brings people together and may have you doing more swimming, golf, gossiping, and socializing than you were doing as part of the workforce!
- Kid-Free – Not everyone enjoys the ‘youthful energy,’ or age diversification we covered above. If you are sick of tantrums on aisle four and don’t want to see any crying infants, this is the place to go!
- Social Calendar Planned – Not only do you have all of the local amenities and people to enjoy them with, but it’s all planned out for your enjoyment. There are often happy hours and social mixers, so all you have to do is outline your monthly schedule and attend the events that get you excited!
Questions to Consider Before Joining a 55+ Community
Some questions to consider if you are thinking about enrolling yourself into an over 55-community:
- Can you afford it for the long-term? If you don’t have enough in retirement to cover all entrance fees and 10-20 years of ‘rent,’ then don’t make a large investment of this scale. It could blow through all of your retirement when you could get more use out of your money.
- Do you want to live in a senior community? Does it look like fun to you, doing the activities, having amenities in close proximity, and getting to know people your own age?
- Would you be nearby other family members that could visit?
- Does this community offer all of the amenities you want?
- Is it cheaper to seek out these amenities from your own present home?
- Are you accounting for caretaking expenses if necessary?
- Do you have any family members that could benefit from you owning your own piece of real estate? An investment that can be passed onto them and has more value than a house in an over 55+ community in which they could not live in.
Questions to consider if you are thinking about enrolling a family member or parent into an over 55-community:
- Would they be close enough for you to visit periodically?
- Can the family afford to assist them with the high expenses? Is it feasible? Would another real estate investment be more lucrative in the long-term? Something that could be passed down to you as the child heir perhaps.
- Would they be happy here?
- Is it in their best interest or yours?
Alternatives to 55+ Communities
Now that we’ve gone over the advantages and disadvantages of 55+ communities, it only feels fair to offer you some reasonable alternatives.
You may feel as if you’re limited on options, but that is simply not the case.
- Cruise Ships – Yes, cruise ships. I worked as a travel agent for years and had many repeat/long-term clients that lived on cruise ships permanently. It is actually cheaper in many cases to live on a permanent vacation than to pay for an overpriced retirement home.
With some cruises being as little as $30 a day, including all meals and concierge services for your every beck and call – you can travel the world and circle the globe over and over. There are activities onboard, events, age diversification, and endless memories to create in your travels. I’ve worked with dozens of clients that had been living on ships for 40+ years, and it’s more common than you may believe. If you want to see the world, there’s no better way!
- Senior Villages – These allow you to connect with people who can offer you transportation, help around the house, and connect with people. You may need some light help, and this is a great, affordable way to find it. The services here can be covered by a membership of around $500 per year.
- Senior Homeshares – Find a roommate that is over 55 and can live an independent lifestyle with you.
- Senior Co-Ops – Similar to an over 55-community but with more freedom and independence.
- Tiny Houses – They’re trendy, they’re tiny, they’re affordable! You can purchase your own tiny home for under $20,000 easily. This could be much more affordable than a retirement home and offer you the independence to move your tiny home anywhere.
- Post-Acute Care – This is a smaller-scale assisted living without all of the pressure, but certainly with fewer amenities. You can read more about what programs like The Green House Project are doing to assist seniors.
- Live with your family – In many cultures, this is the way things happen. Your parents care for you, you grow up, they grow old, you care for them. It is the circle of life and part of caring for your family. If you are close to family members that would have an extra room, you can all save money, help each other, and you’ll be close to the ones you love. This might be the best way to spend your golden years and also assist with babysitting the grandbabies! Win-Win!
- Stay where you’re at – Maybe home is where the heart is! You can still schedule amenities, find a local pool, use apps like Meetup to find locals with common interests. You don’t have to pay $5,000+ a month for this. Especially since these homes don’t include caretaking, you may as well stay where you’ve lived your whole life and are comfortable. Consider making home modifications and investing your money in changes that would increase your joy, instead of investing it in retirement homes which can’t be passed on to your children or family members.
Final Verdict – Not a One-Size-Fits-All Solution
With nearly a quarter of our population presently being comprised of baby boomers, there is about to be a major wave of senior citizens and changes in our programs surrounding retirement.
Although many over 55-communities offer great amenities, it may not be the best option for you.
You’ll have to determine for yourself what you desire to live comfortably based on the disadvantages and advantages we’ve covered above.
If an over 55-community allows you to have those things, determine if it is financially feasible. If these communities do not offer you what you want, simply know that you have other options.
Do not feel forced to move into a community or lifestyle that you do not find enriching. There are federal programs, healthcare assistance, programs that will come to your house and assist you, or you can float around the world on a cruise ship for less than your standard retirement home.
Great numbers lead to great change, so we could be on the brink of a time that will create even more unique ways to help our over 55 age-group do more of what they love. Keep in mind that you will not have a piece of real estate to pass on to your younger family members with this investment, and it will not include caretaking services. These are major strikes against the investment of an over 55-community that may make it highly expensive with little payoff or long-term value.