As you move closer to retirement, your needs and lifestyle may change. You may want to downsize or find a community where you feel comfortable. You, and many others, may consider a 55-plus community.
Different Retirement Community Categories
A 55-plus community is considered “senior living.” It’s a term that acts as an umbrella for many different communities. It’s regarded as a category, not a type of living.If a community designates itself as a senior living community, it tells you it’s not much more than a 55-plus community.
Independent living is a subtype of 55-plus community and has more amenities.
The next senior living under the umbrella is assisted living. It offers benefits similar to independent living, with the addition of support for daily activities. Some of this support could be bathing, preparing meals, or grooming.
Finally, there are continuing care retirement communities (CCRC), which offer a continuum of care so you can remain in the community no matter how your needs change. These include independent living, assisted living, memory care, and long-term care.
55-Plus Communities Are for Active Seniors
In a 55-plus community, at least one person in the home must be over 55. These communities prohibit anyone 18 or under from living in the home. Sometimes called “active adult communities,” they offer an enjoyable place to live for many age-qualified buyers near or in retirement. These buyers are surrounded by people who are like-minded in their approach to retirement.Fifty-five-plus communities often include amenities and are near stores, restaurants, and other attractions.
80/20 Age Rule in 55-Plus Communities
There is a rule derived from federal law for such communities. It’s the 80/20 rule, which states that at least 80 percent of occupied homes have one resident who is 55 or older. The 20 percent allows some flexibility in the requirements. But even though there’s some flexibility, individuals 18 and under are not permitted to live in a 55-plus community.Several Types of 55-Plus Communities
There are several options to choose from when looking for the right 55-plus community, including:- luxury communities, which offer more amenities and luxury-level features
- golf and resorts, which offer a resort-like environment
- singles only, which are designed for unmarried individuals
What Is the Monthly Cost of a 55-Plus Retirement Community?
When researching the cost of a 55-plus retirement community, it’s wise to first decide what type of housing interests you. There are communities with senior apartments or single-family 55-plus homes. The cost of these differs.The cost of a single-family house depends on the mortgage payment. Homes in a 55-plus community are purchased in the same manner as those outside a community. You may need to approach a financial institution for a mortgage. A Place for Mom states that the cost is typically $2,300 per month.
But because yard care and other amenities are included, there’s a homeowners association (HOA) fee. This could add hundreds of dollars to your monthly payment.
Pros and Cons of Living in a 55-Plus Community
There are many pros to living in a 55-plus community. There are benefits that are difficult to find in open neighborhoods. But 55-plus communities also have some drawbacks. It’s essential to contact the community you’re interested in and ask for a written list of their regulations.Pros of Living in a 55-Plus Community
Fifty-five plus communities are located throughout the United States. That means you have choices. And because these communities are typically gated, you’re fairly assured of lower crime rates. Many communities have on-site security for additional safety.The HOA fees typically include common areas, landscaping, and shared amenities. And although you still must maintain your backyard, it’s usually small. Amenities may include golf courses, social events, fitness centers, etc.
Cons of Living in 55-Plus Community
The HOA fees can be a major con. They can add up quickly. According to Rocket Mortgage, fees can be as high as $800 per month.Besides the HOA, there are also strict rules and regulations that must be followed. Fines are levied against those residents who violate them.
Read the Fine Print of Any 55-Plus Community
If you’re interested in a 55-plus community, contact the sales office to explore costs. Ask to see the HOA rules and regulations. Always visit the community before making a decision.Whether you decide to move to a 55-plus community ultimately depends on your lifestyle, health and finances.
