Apr 5, 2024
The expression “birds of a feather flock together” leaves plenty of room for, well, ruffling feathers — especially where retirees are concerned.
There are plenty of benefits to independent living communities for those over the age of 55 — from socialization opportunities to living a low-maintenance lifestyle — but what are the downsides?
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The most infamous 55-plus community, Central Florida’s The Villages, is the world’s largest at roughly 32 square miles — an area larger than San Francisco.
Home to more than 79,000 people, according to 2020 U.S. Census data, it sometimes gets bad press, in part due to its reputation as ground zero for self-indulgent baby boomers.
While The Villages may be a unique case, does the notion of moving into a 55-plus community give you pause? We break down some of its biggest cons.
Lack of affordability
Retirement communities offer older Americans amenities such as group activities, transportation options and housekeeping services, among others. While these are certainly perks and offer opportunities to make new friends and enjoy leisure time, it can put strain on your wallet.
According to a study conducted by caregiver resource company A Place for Mom, the national median monthly cost for independent living in a retirement community is $3,000.
Although this isn’t as high as monthly fees for assisted living — which can cost upwards of $4,800 a month — it’s still enough to give many people pause.
Many senior communities also have entrance fees, which is essentially a buy-in and can be quite substantial. According to Simply Senior Living, it can add an additional $30,000 to your bill. Although typically refundable, entrance fees can still be a significant out-of-pocket expense for many.
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Paying for unused amenities
Even if you can afford to live in a 55-plus community, additional fees will have a way of eating into your retirement budget.
For example, amenities can total roughly $200 a month, meaning an annual outlay of $2,400. (The Villages in Florida, for example, charges $195 a month.)
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While these expenditures cover items such as maintenance, entertainment and classes, you’ll have to pay them regardless of whether you use all the associated services. You can also expect them regardless of whether or not you take full advantage of them.
One thing to consider when debating senior living communities is whether or not you’d fully utilize the additional amenities it offers.
Racial disparities
When considering the racial disparities in many retirement communities across the country, the numbers can be quite shocking. For example, according to data from the United States Census Bureau, 97.4% of people living in The Villages in Florida are white, while Black residents make up only 0.4%.
There’s also a disproportionately low number of Latino residents residing there: only 1.4%.
According to the New York Times, Black Americans have only 14% of the wealth of white people, while Latinos have just 20%. (This data excludes Social Security.) As a result, there’s a significant diversity problem in senior living communities.
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Isolation from other generations
Paul Irving, founding chair of the Milken Institute's Center for the Future of Aging, said that 55-plus communities lack another kind of diversity: intergenerational relations. Although many senior living locations allow visitors, you might want to reconsider a lifestyle that solely places you with those in your age demographic.
“These places can seem safe choices in a youth-focused America that stigmatizes aging," he wrote in 2021. "But studies confirm that the intergenerational connections and sense of purpose associated with these types of living and learning arrangements foster health, positive attitudes and well-being."
As one study published in the National Library of Medicine stated, “intergenerational relations are an integral part of the cultural makeup of society.”
The stress of adapting to a new environment
At the end of the day, moving into a new space (not to mention downsizing) can be a jarring experience for anyone, regardless of age.
There are a lot of unknowns to consider: location, cost, distance from loved ones, extracurricular activities, etc. However, many independent living facilities offer a sense of community and, if you do your due diligence and research a variety of options, it may go a long way toward easing any nerves or concerns you may have.
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Lou Carlozo is a freelance contributor to Moneywise.
