Will Buying in a 55+ Community Impact My Retirement Savings?

If you're considering purchasing a property in a 55+ community and wonder how it may affect your savings, this article has some helpful tips for you. Before taking the plunge, let's look at a few important homebuying factors that can impact your finances in retirement. 

Buying a Home Before Retirement

As you approach your golden years, your retirement budget holds great importance. If you're intrigued by 55+ community homes, it might be in your best interest to invest in one before you officially retire. The reason why is that you earn more income before retirement than afterward. And with that higher income, you may be able to snag a lower-interest loan.

The critical question you need to answer is whether you can afford to buy a new home while still building your retirement savings. If you plan accordingly, purchasing a new home could lower your future retirement budget. It’s worth considering an investment in an active adult community if any of the following situations apply to you: 

• You have existing home equity that can cover most, if not all, of your new home purchase.

• You are downsizing from a larger home and stand to reduce your monthly mortgage.

• You can secure a better interest rate on a new loan, giving you lower monthly payments.

• You are moving to a state that will reduce your cost of living.

• You are relocating closer to family members who are willing to provide assistance.

Regarding that last point, this may not be monetary assistance. But as you age, you may need help with activities such as getting groceries or making doctor’s appointments. Living close to relatives may not only lighten the load, but it can also save you some money in the long run.

Exploring 55+ Community Costs

As we get older, finding a place to call home can be challenging. However, there are over-55 communities available that give you the ability to stay socially active and be surrounded by like-minded individuals. Del Webb is one such community, offering an on-site activity director to ensure you're always having fun. Plus, unlike other planned residential communities, everyone here is in the same age group.

Of course, all these communities have one thing in common: homeowners association (HOA) fees. Those costs depend on several factors, from community size and amenities to location, but don’t let the thought of HOA fees put a damper on your enthusiasm for enjoying the 55+ lifestyle. Find out what expenses you can expect and more in our article, "Are There Hidden Costs for Senior Living Communities?"

Saving for Retirement

We all want to be smart with our money when buying a home, especially when we’re also budgeting for retirement. If you're already a homeowner, acquiring a new or a second property might seem daunting and expensive. But if you're currently renting somewhere, it might be time to consider investing in a home of your own instead of continuing to pay rent in retirement.

Rather than investing in an older home that might come with unforeseen headaches, consider buying a brand-new construction home in a vibrant and active over-55 community. With Del Webb, you'll get a 10-year structural warranty guarantee, meaning you can relax and enjoy your new space worry-free. Plus, if you choose, you can pass your beautiful, low-maintenance home to a loved one. 

There are plenty of ways to find 55+ community homes that fit your retirement budget. Learn about states that are great for retirement. Or, browse Del Webb’s active adult communities to find a 55+ community home that will help you make the most of life without tapping into your savings for retirement.

Contributed to The 55+ Society