Housing Options for When You Are Nearing Retirement

Where will you live when you retire? Will you live in your current home, and for how long? What other options are available? There are several things to consider, including the cost of living, health and mobility, and personal preferences. 

Money is always a consideration, especially when you retire and are on a "fixed income." Will you be able to maintain your lifestyle, travel, enjoy recreational and social activities, and enjoy family on your retirement savings?

Have you paid off your mortgage? If not, can you make your mortgage (or rent) payments, including taxes, utilities, and normal household and property maintenance, on your retirement income?

As you get older and your health declines, the question must be asked if your current home is age and disability-friendly? If you move, this will be a key consideration.

Can you receive in-home care in your current or future home if you need long-term health care? If you have Long-Term Care Insurance, it will pay for the care but is your current home a good setting for you as you get older? If you don't have insurance, can you afford the care and your other expenses?

Hopefully, you have prepared for these questions before retirement. Planning ahead is always easier than planning in a crisis.

There are affordable housing options available if your budget is very tight. Here are some of those options:

Move-In with Your Kids

This option seems far-fetched for many, but it is worth considering for some people looking for cheap housing. Much of the decision-making will not come down to you but your family, as you'll be their new permanent roommate. This option requires you to have a strong relationship with your kids, but it could be very fulfilling. You can spend time with your grandkids and enrich your children's lives. So if this option is viable for you, it's worth exploring.

However, living with your adult children and their family is one thing - having them become caregivers if you need help with daily living activities is another. Even if you have an excellent relationship with your children, having them be your caregiver in addition to their roommate adds another level of stress which is undesirable. 

Caregiving is physically and emotionally demanding. Family caregivers must juggle their career and family responsibilities along with being a caregiver. When you live with one of your children and their family, the problem never goes away. This is too much to ask. 

Families in this situation will often bring in professional caregivers to take on that role. However, if you are independent but have limited financial resources, living with your kids could be an option.

Live in a Senior Community

These independent communities come in various shapes and sizes. Still, they all have a similar theme: they offer homes, townhouses, condos, or apartments in a community where all the residents are age 55 and older. 

No matter the name, retirement villages, active adult communities, senior independent living, or senior housing, residents have their own private living space and access to amenities, including on-site pools, tennis courts, golf courses, and restaurants. Many communities have common areas where you can host private parties. These communities typically have many social activities that are available for their residents. 

These are housing options that allow you to remain active and independent and be around people of your own age group.

Subsidized Housing

Senior subsidized housing is a consideration for those with low income and few assets. There are federal housing programs that can help subsidize or stabilize the rents of seniors that are often administered on the local or county level. The U.S. Department of Housing and Urban Development provides funds and administers these programs; however, some have long waiting lists due to the high demand for subsidized housing.

There are income and asset requirements for these programs, and generally, you must be age 62 or older. 

Learn more - Information for Senior Citizens | HUD.gov / U.S. Department of Housing and Urban Development (HUD)

Sell Your Home and Go Mobile

This option sounds dramatic, but it's a fun way to do something different that you've always wanted but never had the chance to do. A mobile lifestyle is not for everyone, but it is a great way to see the country and never have to stay in one place. 

Are you ready for the RV? There are permanent and semi-permanent RVers who have sold everything – homes, condos, cars, furniture, and see the country coast to coast.

It can be hard to sell your home and get rid of many of your items, but it can also feel liberating. You will need to sell your home and belonging other than what you need in your RV. Some people will put some stuff in storage or get a small condo or apartment to call their "home base."

Selling your house can sometimes be a long process. Some people use the short sale. Considering the short sale process for your home, if other options don't seem reasonable, it is an option many people don't think about that could be very beneficial for getting you closer to retirement and out on the road if that's what you want to do.

Life Plan Community or CCR

A continuing care retirement community (CCR), sometimes known as a life plan community, is another for people with available assets. These communities offer a continuum of aging care needs—from independent living, assisted living, and skilled nursing care—which can all be met within the community. You buy into these communities and then sell them at the end.

There are monthly costs, and they can increase a bit if you need long-term health care. These costs initially are lower if you own a Long-Term Care Insurance policy. The regulation varies depending on which state you live in, so check on the available consumer protections that are available in your state.

Finding the correct housing options for when you are nearing retirement is challenging. However, finding the right choice can be very rewarding. Your home is your sanctuary at the end of the day, so don't settle for something that makes you unhappy. Instead, pick the best option for you and go for it.