Retirement communities popular for seniors of all ages

June 13, 2013

As the Baby Boomer generation nears retirement age amidst the perception of an improving economy, a rise in the number of seniors buying into luxury retirement facilities has taken place. In the past, seniors often waited to enter a retirement community until they required assistance with medical care and daily tasks, such as cooking. These days, an increasing number of seniors are opting to move into such facilities at a younger age, when they are able to take advantage of their amenities.

Many of these facilities now offer high-end services, such as gyms, five-star chefs and state-of-the-art community centers. In addition, they provide a significant number of activities in which residents can participate, if they choose to do so.

Baby Boomer retirement communities

According to the National Association of Home Builders, 2013 may see a 25 percent increase in the number of single-family homes purchased in retirement communities by individuals over 55 years of age. In 2012, home sales in such areas increased by 21 percent.

This increase is due in large part to the number of individuals across the country who are currently reaching the age of eligibility to move into such communities. The National Association of Home Builders has estimated that by 2020, over 46 percent of households in the United States will include individuals aged 55 and above. In 2012, only 42 percent of U.S. households were senior citizens.

While these luxurious residential communities offer a wide array of benefits, it is important for senior citizens considering such a move to take precautions to protect their assets. For starters, many of these facilities are pricey, whether the individual is planning on renting or purchasing within the community. Seniors should examine their budget to ensure the cost of living in such an area is feasible.

In addition, some residential facilities called continuing-care retirement communities -- also referred to as CCRCs -- can be risky investments. In such situations, individuals pay a large fee up front for a residence and continuing care throughout the course of their life. While the community may offer a large number of services when the individual buys in, there have been cases where financial difficulties have led to a cut back.

When deciding to move into a residential community geared toward seniors, it is wise for senior citizens to discuss their options with a real estate attorney. Consulting with a legal professional will ensure the homebuyer's rights are protected throughout the process.

Article provided by Timothy J. Morgan, Attorney at Law
Visit us at www.timothyjmorgan.com