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Retirement housing isn’t just about location, location, location! One of the many wonderful aspects of being a retiree is the freedom to explore the wide range of senior living options available.

Whether you choose to stay in your current home, downsize, or relocate to a retirement community, it’s essential to understand how much each option costs. Armed with this knowledge, you can decide which choice is best for you and your retirement budget. In this guide, we’ll take you through everything you need to know about retirement housing, including the different types of senior living available, their costs, and how to choose the right place for you.

continuing care retirement communities

Discuss Your Vision for Retirement Housing

Before choosing where you want to retire, it’s important to talk with your partner and establish a clear vision for retirement.

“It’s hard to have a good financial plan if you don’t really know what life is going to look like in retirement,” said Keri Dogan, senior vice president of retirement income solutions at Fidelity. Having a conversation with your spouse or significant other is fundamental. “One of my favorite pieces of research that we’ve done in the past was about those spousal conversations and how many times spouses don’t have the same vision for retirement.”

Not all spouses are on the same page. “Sometimes we find that when we meet with spouses, they haven’t talked about their vision for retirement,” Dogan said. “We have one spouse who’s picturing moving to a farm in Vermont and another who’s thinking about moving into an apartment in the city, and they don’t realize it until they’re a year from retirement.”

Dogan recommends starting with the basics. “Think about where you will live and if you will stay in your house or downsize.”

Another crucial conversation is with your financial advisor. Make sure you have a firm grasp on what your retirement portfolio looks like, what you can afford, and how housing affects your overall budget.

Downsizing vs. Staying in Your Current Home

Many empty nesters realize they have more square footage than they need. Downsizing to a smaller home saves on monthly payments, utilities, and repair costs. It can also free up funds to pay for assisted living or nursing home costs.

A home with a smaller footprint certainly helps simplify your life and frees up time to enjoy hobbies or travel. However, the emotional ties to a family home can be strong, making the decision to move difficult.


The Downsizing Dilemma: 5 Questions to Ask Yourself

  1. If you own your home, how much equity do you have?
  2. Can you afford to stay in your current home for another decade (or longer)?
  3. Can your medical or physical needs be met in your current home?
  4. Is home and yard maintenance enjoyable or overwhelming?
  5. Do you feel lonely or isolated?

Pro Tip: Our downsizing guide takes a deep dive into the pros and cons of downsizing.

Once you and your partner are on the same page and you’ve decided whether or not you want to downsize, it’s time to look at your different options for retirement housing.

Types of Retirement Living Options

Aging in Place

Older adults who age in place choose to remain in their current home instead of moving to a retirement community. An essential part of comfortably and safely aging in place is ensuring extra care (such as home health care) is available and necessary home modifications are made.

How Much Does Aging in Place Cost?

Financial costs for aging in place are based on a person’s medical and physical needs. For example, adding wall-mounted grab bars and a shower chair in the bathroom to prevent falls won’t break the bank. However, extensive modifications come with a heftier price tag. According to HomeAdvisor, the average price of installing a stair lift is $6,000,1 and adding a wheelchair ramp averages $2,000.2

Home alterations and modifications can add up. The National Institute on Aging (NIA) suggests contacting your local National Association of Area Agencies for Aging for additional support resources.

Independent Living Retirement Community

Independent living retirement communities are designed for independent and active retirees. While some communities set the minimum age at 50 years old, the more common minimum ages are 55+ and 65+. Amenities are like those found in high-quality hotels, including swimming pools, fitness centers, beauty salons, restaurant-style dining, and security services.

You can find a wide variety of independent living retirement housing, including these options:

How Much Does Independent Living Cost?

On average, prices range from $1,500 to $3,500 per month to reside in an independent living community. Independent living facilities often bundle rent, utilities, and amenities into the overall monthly cost. Costs vary by location.

From the pros: Affordable senior housing is available. The U.S. Department of Housing and Urban Development (HUD) and the Housing for Older Persons Act provide HUD-sponsored senior housing. Older adults with limited resources can apply for affordable housing, such as a low-income senior apartment, under Section 202.

Continuing Care Retirement Community

A continuing care retirement community (CCRC) is a life plan community offering an independent, amenity-rich lifestyle with access to onsite care should medical needs progress. This continuum of care offers stability, allowing residents to stay in one community for the long term.

How Much Does Living in a Continuing Care Retirement Community Cost?

According to CBRE Group, a U.S. commercial real estate firm, the average CCRC entrance fee is $329,000. Monthly charges can range from $3,000 to $5,000 but may increase as needs change. It’s important to note that these fees may include the cost of care, depending on the contract and community you choose.

Assisted Living Retirement Community

Within assisted living retirement communities, you’ll find older adults who remain largely independent. While residents may need help with specific activities of daily living (ADLs), they don’t require 24-hour medical attention. Common services provided in assisted living communities include meals, laundry, housekeeping, and transportation.

How Much Does Living in an Assisted Living Retirement Community Cost?

The size of the assisted living facility you choose, along with the types and number of services you need, all impact the final cost. According to Genworth’s Cost of Care Survey, the 2020 national median cost for assisted living is about $141 per day or $4,300 per month, totaling $51,600 annually. Assisted living communities are more affordable than a private or semiprivate room in a nursing home.

Did You Know: Our in-depth assisted living vs. independent living guide explains how these communities differ and who they are best suited for.

Nursing Homes

Nursing homes are residential care facilities that provide 24-hour care for older adults who need high levels of assistance with nonmedical, everyday living tasks. Support may include dispensing of medication, housekeeping, assistance with ADLs, and meal services. Senior care in a nursing home is more advanced than assisted living.

How Much Does Living in a Nursing Home Retirement Community Cost?

Genworth’s Cost of Care Survey reports the nursing home financial cost for a private room is $290 per day or $8,821 per month, totaling $105,852 annually. Semiprivate rooms are slightly more affordable, averaging $255 per day or $7,756 per month, totaling $93,072 annually.

From the pros: Not all retirement housing has to break the bank. Don’t miss these 10 places to retire for $1,000 or less.

Keep in mind that the above nursing home costs do not include higher-level skilled nursing, memory care for Alzheimer’s and dementia patients, or hospice care.

Retirement Housing Planning Resources

According to the State of Retirement Planning Study by Fidelity Investments, a mere 12 percent of older adults aged 41 to 75 years have used online search tools to calculate how to afford their desired retirement lifestyle.

It’s time to fire up your computer and take control of your future! Budgeting for housing during your retirement years doesn’t have to be overwhelming. Simply tapping into the wide range of online resources is an excellent way to make educated decisions.

Pro Tip: Which retirement locations have it all? Learn more about the best places to retire.

A great place to start is understanding how much money you’ll need for retirement and creating a budget. Additional financial planning resources for older adults include the National Council on Aging, the U.S. Department of Health and Human Services, and AARP.

How much do nursing homes cost

Helpful Tips for Choosing a Senior Living Community

12 Retirement Community Questions to Consider

You’ve worked hard. Now it’s time to enjoy your retirement! There are quite a few factors to consider before choosing your new place to call home. Here are 12 important questions to get you started on your journey.

  1. What is your expectation for daily life as a retiree?
  2. What are your preferences for geographical location and climate?
  3. What is the cost of living in the communities you’re considering?
  4. How will you pay for living in a retirement community?
  5. What are the contract terms, entrance fees, and monthly association fees?
  6. What is your plan for current and future health care needs?
  7. Does the community offer recreational and leisure activities of interest, such as exercise classes, gardening, golf, or crafting?
  8. What amenities does it offer?
  9. Are there restrictions such as no pets, limited visitors, or no smoking?
  10. Is the location a gated community?
  11. What is the crime rate?
  12. Are you eligible for municipal tax benefits?

Retirement Locations Designed to Meet Your Lifestyle Needs

Finding a community where you truly feel at home is a key factor to long-term happiness. There is a multitude of retirement lifestyle communities to choose from, including these types:

Did You Know: Do you have a passion for pickleball? Or dream of living in an artist’s colony for older adults? Check out these 10 unique retirement communities.


  1. Home Advisor. (2021). Stair Lift Cost.
  2. Home Advisor. (2021). Wheelchair Ramp Cost.
Reviewed By

Jeff Hoyt

Editor in Chief

Since graduating from Harvard with an honors degree in Statistics, Jeff has been creating content in print, online, and on television. Much of his work has been dedicated to informing seniors on how to live better lives. As Editor-in-Chief of the personal… Learn More About Jeff Hoyt

Written By

Maureen Stanley

Writer & Editor

Maureen joined with more than 10 years of experience writing in health, lifestyle, and nutrition for premium brands like General Mills, Westinghouse, and Bristol Myers Squibb. Her passion for empowering older adults is evident in coverage of topics like retirement, health… Learn More About Maureen Stanley

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