Alternative retirement living

GroovyGirl has a good piece on retirement living.

Groovygirl believes that in the next 20 years, retirement units will be hard to come by and expensive. But as more Baby Boomers retire and require special accommodations, those living costs will stabilize or decrease.

In some areas, the waiting list of retirement units are 2-3 years long. What do you do in the meantime? You have sold your house (before it is devalued any more) and you are now homeless, waiting for your retirement unit.

A hotel

Select service hotels such as Residence Inn By Marriott and Hilton Garden Inn may offer a good daily rate for an extended contract of 6 months to 2 years (sometimes much better than the local retirement home daily rate). These hotel rooms are usually larger than most “retirement rooms” and have a full kitchen (including plates and cookware) and full bath. For an additional charge, you can also have your pet (usually under 35 pounds) live with you. (I know retirees that live at a hotel for this benefit alone as most retirement facilities do not allow pets. This will probably change in the future as more Baby Boomers retire.)

These types of hotels usually have a free breakfast and cocktail hour, so part of your daily food expense is free. At a hotel, they do not have any medical staff available, but there is always someone checking on you in case something should occur. Depending on the location, there is sometimes a van service to take hotel guests to local attractions, the airport, or shopping. There is usually free internet, WiFi, and public computer center, an exercise room, local phone, guest laundry, and pool. Those extras can really add up and should be calculated into the decision process.

I know one retiree who didn’t want to handle the maintenance of a big house, but didn’t want to go live “in a place with a bunch of old people”. She lives at the hotel to be around all age groups and have her dog with her more than any of the other benefits. And her rate is currently less than the local retirement community.

The downside: no storage.

Rent a private room

With many people needing help making the mortgage payment, families or single mothers may be willing to rent out an extra bedroom for a small fee. While it used to be that you rented out the spare room to a local college student, times have changed. Start asking around and see if you have any takers.

Remember to be upfront about all your wants and needs and have all the rules in writing. But this could be a very good temporary solution if you do not have family in the area (or even of you do).

House sharing

If you live alone and have extra room(s), you could invite other retired people to share expenses in your home. Again, be upfront with expectations.

Live in another country

If you are relatively healthy, consider moving to another country where your USdollar or gold savings will go farther. South and Central America seem to be very popular for this move. There are many considerations with a move like this. Do extensive research first.

Move in with your children or grandchildren or other relative

Always an option. Put it in writing and make sure it has an end date or a review date.

These are just some of the options for retirement living. Most of these solutions would not work if you had a severe medical condition.