A recurring question when planning for retirement is what is the cost of living in a residence ?
Let’s take a look at the various factors that need to be taken into account to determine the budget required to live in a retirement home.
Cost of living – Rent
Rent is, trivially speaking, the biggest expense when living in a retirement home.
However, the amount can vary significantly depending on the size of the apartment, the number of rooms, the services offered, and the geographical location of the retirement home in question.
Actual pricing can be obtained by contacting the residences you are interested in. You can also visit them to see if the rent is in line with what’s on offer.
It’s also important to check what’s included, such as electricity, heating, air-conditioning and basic appliances, to accurately determine the cost of living in a residence.
Cost of living – Meals
Meals are an important enough expense to merit consideration.
If you still want to prepare your own meals and your apartment has a fully-equipped kitchen, the amount you need to budget will not change significantly from what you spend now.
What’s more, it’s the cheapest and most attractive solution, provided you’re self-sufficient and willing to cook on a daily basis.
If not, you can enjoy your meals in the residence’s dining room. Meals will either be prepared directly on site by a skilled team, or delivered by an independent caterer.
In both cases, you’ll need to budget much more than if you were to shop and cook yourself.
Nonetheless, this solution will allow you to take a load off your mind when it comes to food, and no longer have this constraint in your sights.
Other costs to consider
You’ll need to consider paying a flat rate for phone calls and Internet access.
Check with the residences you are interested in first, as these services are sometimes included in the rent. On the other hand, you’ll need to take out home insurance to cover your personal belongings, as well as your civil liability.
And don’t forget the cost of parking, both for you and for your visitors. A final important point to consider concerns additional services.
The latter are optional, and can relieve you of a number of tasks, such as housework, medication management or meals. Don’t forget that if you’re aged 70 or over, you may be entitled to claim a tax credit for home support for seniors.
NOTE: Residents aged 70 and over are eligible for financial assistance in the form of monthly payments (averaging from $141.00 to $430.00), thanks to the tax credit for home support for seniors and the housing allowance.
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