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How Long Will My Retirement Savings Last?

By: / 03 Jul 2024
A group of people around a table

Planning for senior living is a large investment and requires much time and research to find the best option. For families, this process can feel overwhelming and filled with uncertainty. One cost concern we often hear is, "How much should I save for senior living costs?" This is a personal journey, involving both financial and emotional considerations, as you strive to find the best possible care and living situation. We understand the weight of these decisions and are here to help guide you through this complex and important planning process. 

Are you ready for Retirement?

It's impossible to predict precisely how much you will need to save to live comfortably in retirement. Here are some things to consider when saving for retirement:

  • Understand how long your money will last. We recommend using a tool like this "How Long Will My Money Last? Calculator." You can see how long your funds are expected to last based on your total savings, investments, taxes, and projected inflation rates. 
  • Get tax benefits with a Roth IRA. Research ROTH IRA withdrawal rules to see if any benefits are available. According to Charles Schwab, those 59 years or older with an account age of over five years may be able to withdraw from their Roth IRA accounts tax and penalty-free. 
  • Invest your money. Leading into retirement, it may be time to consider how your money is organized and if all your assets are allocated correctly. Investments such as bonds, high-yield saving accounts, and certificates of deposit (CDs) may prove helpful down the road. Reach out to your financial advisor with any questions.

Ways Beyond Retirement Savings to Pay for Senior Living

There are various other tools and ways to plan for long-term savings to allow for financial stability in a senior living community. We've discussed private income, retirement, social security, real estate, savings, and annuities, now let's review some other opportunities: 

  • Explore long-term care insurance (LTCi). This is a type of insurance individuals can use to help pay for long-term care goals and costs. This style of coverage can allow policyholders to save income and protect assets by covering some out-of-pocket costs and services typically not covered by health insurance. Coverage can even cover assisted living costs, depending on the policy.
  • Find funding in home equity. There may be a great opportunity to gain capital to pay for your cost of living through selling real estate. Connect with a local real estate professional to learn more about your family's options.
  • Consider using bridge loans. This special style of loan allows seniors to take out a line of credit to have financial flexibility. These loans are available during certain scenarios such as waiting to complete a home sale, your application for VA benefits is pending, or you are waiting for a long-term care insurance payout. 
  • Take a closer look at your life insurance policy. Depending on your coverage and policy type, a policyholder may be able to receive assistance to ease the burden of paying for senior living costs.
  • See if you qualify for special considerations. If you or your spouse is a veteran, there may be special benefits and programs to aid your savings and ability to plan for senior living communities. At Commonwealth Senior Living, we value our community for honoring veterans for their service by providing them with special benefits. This includes our Veterans Rate Lock, locking in the daily rate for all veterans and their spouses for two years after moving in as a thank-you for their sacrifices. 

Understanding the Average Cost of Senior Living 

According to Genworth's Cost of Living survey, Virginia's average cost of Assisted Living is $6,050 per month in 2023. These numbers vary based on the level of care, geographic location, market conditions, and amenities a senior living community may offer. 

At Commonwealth Senior Living, monthly costs range from $3,000 to $6,000, depending on the community location, level of care, style of suite, and type of living. We are proud to offer award-winning signature programs, farm-to-table dining experiences, and beautiful amenities, which also impact the overall cost of our communities. 

Other Considerations: 

  • Annual Rate Increases
  • Extra Fees
    • At Commonwealth, we charge a one-time community fee before moving in. Some of this fee is used to make our suites or apartments brand new again when you leave, and the remaining is used for community-wide upgrades to activities and common areas based on what residents share. To know the exact costs, speak with an expert at the community nearest you. 

True Cost Calculator

With over 20 years of experience in senior living, we understand how important pricing transparency is to families. We want to ensure you have all the resources and tools you need to make this important decision. Our True Cost Calculator is a helpful tool for families to use to compare their current living expenses to the cost of living in one of our communities. 

Planning for senior living expenses can be a wonderful gift to your family and loved ones. It starts with understanding the importance of long-term financial planning and having a solid plan to remain financially stable through retirement. At Commonwealth Senior Living, we value providing tools and information to help families make the best decisions for their loved ones. 

If you are interested in learning more about how Commonwealth Senior Living can help make your family's transition to senior living stress-free, click here to reach out to the community nearest you.


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