When you reach retirement, deciding what is your best living arrangement is an important factor to determine. There is a number of options to consider when choosing where to live when you retire.
Sure enough we all want to have that ideal retirement home, waking up to the sounds of nature, listening to the waves breaking while sipping on a cup of tea, afternoon siestas, you know what I mean.
There are a number of factors to consider when deciding on the best place to retire. Below is a list of the best 5 options on where to live when you retire.
Home Sweet Home
Let’s be honest, the cliché “there’s nothing like home” never gets old, even in your retirement years. So this is the reason that I have put this option at the top of this list. Now that you have retired and settled your mortgage your own is your own home.
When you retire your priorities change as well, you might not even realise that your home is too big now because your children have moved out and there are empty rooms not being used anymore or you might have chosen your home to be close to your workplace, but you are now retired.
- Independence – You have the comfort of your own home.
- Safety and Security – You tend to feel safer and more secure in your own home.
- No Landlord – There is no contracts signed with a landlord and therefore you live under your own rules
- Cost of Security – The cost of security can become an issue.
- Maintenance and Repair Costs – Looking after and maintaining your home; it could become costly.
Taking all of the pros and cons into consideration, especially with regards to maintenance, you can consider selling your bigger home and buy a smaller home therefore lowering your maintenance costs.
Another option would be to sell your home and buy a home in a safe secure location, for example, buy a townhouse, buy a house in a secure village, etc.
Sharing is Caring
If you live alone or are struggling with the high rent or maintenance costs, sharing a home is a good option to consider. This option depends a lot on your personality.
- Maintenance and Repair Costs – The sharing of maintenance and repair costs is a big advantage.
- Companionship – You are not alone and have a companion. This is important because loneliness can lead to depression
- Safety and Security – Living with someone increases your own safety and security. For example, when you are away your companion is at home looking after the house.
- Sharing Chores – The sharing domestic chores as well as sharing the cooking.
- No Privacy – Living with someone else loss of personal privacy
- Major Adjustment – Sharing a home with somebody leads loss of your own private space which can take some getting used to.
This depends a lot on your personal circumstances and might be the only option as you might not own a home of your home when you retire. It could also be your personal choice to sell your home and rent a home.
- No Maintenance and Repair Costs – There are generally no maintenance or repair costs as this is the responsibility because the landlord is responsible for this.
- Flexibility – If you want to change homes you can by just giving notice to the landlord.
- No Capital Risk – If your home’s investment value drops you don’t have to worry about the equity risk of the home being sold below what it was bought for.
- Increases in Fees – Most leasing contracts have an annual increase clause on your rental fee.
- No Pets – A lot of retirees love pets and your landlord might not allow pets onto their property.
- Maintenance and Repair Issues – Your landlord might not maintain and look after the property very well.
- No Decorations – You have to consider the fact that often you can’t decorate the home as you would like it.
Old Age Homes
Also called an “old people’s home”, although most people will think of it as a nursing home which it isn’t, it is a multi-residence housing facility for the retired elderly.
- Companionship – Living with other retired elderly people gives you sense of constant companionship.
- Medical Care and Facilities – Old age homes offer medical care and medical facilities.
- Entertainment – Most old age homes provide entertainment and library facilities to keep you busy.
- Safety and Security – Living within a community makes you feel safe and secure.
- Healthy Lifestyle – They provide you with well balanced meals ensuring you have a healthy life.
- Fear of Depression – Loneliness and depression can become a problem as you are away from family and friends.
- Waiting List – There are usually long waiting lists because of their high demand.
- Small Living Space – The living spaces are generally small and there’s a possibility of sharing that living space.
In recent years retirement villages have grown in popularity as this option gives retirees the convenience of having support facilities at hand combined with all the advantages of independence of living in your own home.
The advantages of a retirement village outweigh the disadvantages in my opinion.
- Independence – You have the luxury of living in your own home.
- Support – You have the reassurance and peace of mind knowing that you have the support on hand in case you require it, for example, frail care and medical assistance.
- Maintenance and Repair – You don’t have to worry about maintaining or repairing your property as these costs are usually included in your regular service charge/levies.
- Safety and Security – There is usually a high level of security in retirement villages.
- Facilities – Many villages include prepared meals, restaurants, libraries, gyms/health clubs, hairdressers, nursing homes, etc.
- High Fees – Service fees/levies can be very high so you need to make sure that your carefully check what is included in these charges.
- Fear of Depression – Loneliness and depression can become a problem as you are away from family and friends. In most villages there are set hours that children can visit you.
Deciding what is the best living arrangement for you is a very personal matter. You need to do all the research you can on the different options available to you so coming back to this page will serve you in good stead when making that final decision on where to settle down on your retirement years.
Also referring this page to your elderly friends and family will help them greatly in understanding the different options that they have as most of them might be unaware of all these options.