Posted incost of living / expenses / insurance / medical and healthcare costs / retirement

‘I’m here until I die’: Rich older Americans are paying millions just to get into luxury retirement campuses — monthly costs can then exceed $10K and health care plans can reach $7M

Today’s retirees are no longer content to idle at home and play bridge, or languish in limited-income nursing care facilities as their age progresses. Instead, a rising number of older Americans are increasingly choosing life plan communities for their future.

These neighborhoods usually have individual living quarters like apartments, as well as on-site accommodations that can offer more involved care if required. Often situated close to colleges, they offer a range of amenities and social opportunities that make them quite appealing to active older adults.

Don’t miss

While some life plan communities may cost between $100,000 to $400,000, others in high-cost areas are far more expensive – such as one community in Palo Alto, with apartment prices ranging from $1.7 million to $7.3 million.

Several reasons make retirees willing to pay extra for a life plan community.

Retirement communities specifically designed to enhance residents’ overall quality of life provide a more fulfilling and enriching experience.

They host guest speakers and offer more conventional retirement home options for residents to move to when needed.

Accessing care at a nursing facility may require purchasing a unit and paying ongoing monthly costs, averaging $4,800, but sometimes exceeding that amount. The monthly fees cover the costs of services such as transportation to medical appointments and social events. Seniors also have the option to choose an all-inclusive care package that secures their rate, even if they require more extensive care in the future.

Regardless of how the fee system works, they’re well-liked both for the simplicity they offer and because they can provide structure and a sense of community when work no longer fills the day.

A retired lawyer on a waiting list for a community shared with the Journal, “If we can join a community when we’re healthy and able to make friends, I truly believe it would lead to a more fulfilling life.”

One resident referred to it as “a gift to our kids,” as the community can provide care for them as they get older. Its residents will no longer have to scramble to find care or become isolated, relying on their children to take them to the doctor or the store.

The cost of living in America has gotten completely unaffordable.

Do these neighborhoods justify the cost?

Purchasing a unit at a life-plan community for a sum of hundreds of thousands of dollars is definitely not a financially feasible option for many individuals. And the additional ongoing monthly expenses simply put further strain on one’s budget.

It turns out that the average cost of a private room in a nursing home is around $9,733 a month. Additionally, the cost may not be drastically higher than what you’d pay for a traditional nursing home, ultimately depending on the specific facility and whether they’re offering inclusive care arrangements.

—and often utterly incoherent.

According to some seniors, these life-plan communities end up saving them money in the long run because they cover everything they need. “If I were to live in my large house, I’d be spending more,” Jane McCaffrey, a retired certified public accountant, explained. She noted that this advantage is particularly significant if she would have to require nursing home care, which would be covered by her comprehensive care agreement.

“My lifespan will be until my eventual demise or the end of my programming is reached.”

For seniors who can afford these programs, the significant cost may be justified by the sense of security that comes from having a care plan in place, especially when paired with the social and emotional advantages that come with living in a lively community.

What to read next


The content of this article is intended for informational purposes only and should not be taken as a recommendation or guidance. It’s provided on an as-is basis, without any implied or explicit guarantees or warranties.

Leave a Reply

Your email address will not be published. Required fields are marked *