Will Buying a New 55+ Home Impact My Ability to Retire?

Exploring 55+ community homes and wondering how buying one might impact your savings for retirement? Do you have it in your retirement budget to afford to live in an over 55 community? Here are a few things worth considering before buying a home before retirement.


Buying a Home Before Retirement

Your retirement budget is a sacred thing, especially as you near your retirement age. If you are interested in 55+ community homes though, it would be best to invest in one before you’ve retired. Why? For most people, your income before you retire is higher than it will be after retirement. And a higher income could qualify you for a lower-interest loan.


But can you afford to buy a new home while still saving for retirement? Buying a new home might actually help you lower your retirement budget if you plan wisely. If any of the following apply to you, it might be worth considering an investment in an active adult community.


  • 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 with lower monthly payments
  • You are moving to a state that will reduce your cost of living
  • You are relocating closer to family that is willing to provide assistance


On the last point, this may not be monetary assistance. But you may need help getting groceries or making doctor’s appointments as you get older. Living close to relatives who can help could help you reduce your overall living expenses.


Exploring 55+ Community Costs

Living in an over 55 community is a lot like living in any master-planned community, although there may be some additional perks—for example, some over 55 communities, like those from Del Webb, have on-site activity directors to help you stay socially active, and, unlike a master-planned community, a 55 and over community provides you with the opportunity to be with people your own age. One thing that  master-planned communities and 55 and over communities have in common though is both will include the expense of a Homeowners Association Fees (HOA’s). But, these expenses can vary greatly depending on the size of the community, the amenities that are offered and even where the community is located. If you are worried about how an HOA could impact your savings and ability to retire, learn more about what 55+ community costs you can expect, and those that you shouldn’t in our helpful article: Are there Hidden Costs for Senior Living Communities?


Saving for Retirement

If you’re working hard to save for retirement, you don’t want the goal of buying a new home to interfere. Especially if you already own your own home and buying a new home would cost you more money. But if you don’t own a home, buying one could be a better decision than paying rent in a retirement community.


In this case, it might be easier to buy a new construction home than to invest in a home that is bound to bring along with it, a lot of unexpected repairs. With Del Webb, you’ll enjoy a 10-year structural warranty guarantee. Of course, you’ll also have the opportunity at some point to leave your home to a loved one.


There are plenty of ways to find 55+ community homes that will fit within 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

Looking for more Society tips and learnings? Return Home here.

Published  1.7.22  

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