As adults grow older and begin to reach retirement age, many worry about whether they’ll have enough savings to enjoy retired life fully. While many adults started putting money aside for retirement early, others may not have had the financial security to accumulate as much in savings as they would like.

Therefore, many adults wonder if they can even afford to retire, particularly those who wish to move to a retirement home. Fortunately, retirement communities know that residents’ budgets can differ significantly.

Today’s article will review different cost-saving options for older persons with smaller budgets. You may be able to afford more than you think!

How retirees can save money on retirement costs

Retirement communities and the Government of Canada cater to the financial needs of older adults in various ways. While many people may enter retirement worry-free, other Canadians have smaller budgets and must cut costs wherever possible.

Let’s review how older adults can save on costs through different financing options and the varied pricing options offered at retirement communities. Click here for more information about the average cost of retirement living.

Using discounts

If your parents or grandparents are moving into retirement together, this may allow them to receive a cut in their retirement home fees. Many retirement communities offer a discount on the price of accommodations, while other fees for housekeeping, meal preparation, and other amenities remain at the same rate.

The amount of money they’ll save using this discount largely depends on the retirement home they choose and the province where they live. However, such a discount may allow older couples to put away their extra funds for more significant costs, such as the transition to assisted living or full-time care when and if the time comes.

Choosing smaller accommodations

Many retirement homes offer a variety of accommodation sizes, from standard one-bedroom apartments to multi-bedroom houses with backyards. If you only require a one or two-bedroom, one-bathroom layout, try to look for a retirement home based on the price of such a unit. 

It’s also essential to consider the location of your desired retirement home, as the prices for the same size apartment may vary depending on where you choose to retire. 

Vying for more basic care services

Suppose you are retiring at an earlier age or aren’t currently experiencing any major issues with your health. In that case, you may be better suited for more basic retirement home care and amenities offered through Independent Living and Independent Supportive Living.

Selecting one of these two retirement home options will provide you with basic housekeeping and meal services, similar to other residents, but you will be in charge of your medical welfare and needs.

Note that 24/7 emergency support is available in most retirement communities should it be required.

Basic government pensions

There are two government pensions that older adults can receive once they reach retirement age – the Canada Pension Plan (CPP) and Old Age Security (OAS), both of which can be allocated toward monthly retirement home fees.

Older adults can apply for the CPP as early as 60 with a reduction, at 65 with a full pension, or at 70 with an increased pension, for which you’ll receive monthly payments.

When you reach 65, you will receive the OAS, a benefits package with three different supplements you may qualify for – the Guaranteed Income Supplement (GIS), The Allowance, and the Allowance for Survivor.

While these government plans may not be able to cover your retirement home expenses fully, they will likely cover a significant portion, which may give you some wiggle room in your current budget.

Tax breaks

Canadian adults moving into retirement are eligible for a number of credits, which may allow them to claim some of their retirement home expenses when filing their taxes.

These tax breaks include the Age Amount, the Pension Income Amount, medical expenses, and disability tax credit, among other possible federal taxes you may qualify for.

Note that you can transfer all or part of the Age Amount to your spouse or common-law partner.

By applying for these credits, come tax season, you can write off a fair amount of your expenses, allowing you to save extra money and balance your budget.

Taking advantage of free and low-cost amenities

Finally, one of the main ways retirement homes cater to the diverse budgets of their residents is by providing them with various free or low-cost amenities.

When older adults move to a retirement community, they gain access to amenities such as community recreation areas, entertainment centres like on-site theatres, group exercise classes and fitness centres, and communal dining rooms.

Retirement home events and activities calendars also feature entertainment, classes and workshops, social dining opportunities, wine tastings and winery tours, and many other exciting events that are either free or low-cost.

By taking advantage of these amenities, older adults can enjoy fun activities, events, and entertainment that would normally cost a much higher fee elsewhere. Older ones can then save most of the funds they have set aside for miscellaneous activities and put them toward other more pressing expenses.

How do retirement homes cater to different budgets? — Conclusion

There are many different ways that both retirement homes and the government of Canada allow older adults with smaller budgets to enjoy their well-earned retirement years in comfort.

We encourage you to look into the options above with the help of a loved one or financial advisor to get a better idea of what you may qualify for so that you can secure your place at the retirement home without breaking the bank!

The post Inclusive Living: How Retirement Homes Cater to Diverse Budgets first appeared on Teecycle.