Which retirement residence should you choose?

It depends on what they have to offer and on what you have to spend…

Today’s retirement residences are very tempting, with their spas, sumptuous lake views and five-star dining rooms but don’t rush your decision. There will definitely be some homes that are more suited to your needs and budget than others and you must make an informed choice.

• Be sure to make a detailed list of all of your current expenses so you will know exactly what your budget is beforehand. Some residences provide forms you can use or you can print off an online version or find one in a retirement planning book.


• Get two or three real estate agents to calculate the market value of your home, particularly if it will be the main source of income financing your move. You don’t want to find out that the sale of your main asset won’t provide you with the amount of money you need.


• Once you have your budget you can compare the costs of each retirement home against it and see what you can afford. You may even find that you are paying more now than you would in the retirement home you are considering.


• If you will be selling your home but the market is slow and you need to move quickly, you may want to borrow money against the value of your house. Then you can finance a temporary retirement home stay until it’s the right time to sell. Alternatively you could rent out your home to finance your visit.


• Compare residences that are similar and ask for a detailed list of the features your monthly bill would include. That way you’ll be able to look closely, see what sets one apart from the other, and determine which one has the services you need.


• Find out how much you would be charged for extra care should you need it in the future. Investigate long-term care insurance if you haven’t already and determine if it is the right investment for you.


• Al-inclusive prices although they may seem high, can be lower in the end than à la Carte options; you may think you’ll only require a few services but if your needs change later it could get quite expensive. Remember, homes will usually provide a range of services for different budgets so be sure to ask what each one includes.


• This is one of the most important decisions you will make so do your research, work with a good financial planner who specializes in retirement issues and take as much time as you need.

Based on a story by Maureen Murray that originally appeared in Comfort Life magazine in 2009.