Research conducted by The TransAmerica Center for Retirement Studies indicates that deciding to relocate to a 55+ community in retirement requires considering far more than warm weather and low taxes. It’s essential to also consider the following needs:
- Accessible healthcare & providers
- Lifestyle-appropriate housing
- Public transport systems or ride-sharing systems
Since many retirees want to continue working part time, the community should also have access to potential opportunities for employment.
Overview Of 55+ Communities
Also known as independent living communities, 55+ Communities are designed for retirees who are not yet in need of assisted living or a nursing home. The majority are located in Sun Belt states that offer warm year-round weather and resort-like, on-site amenities including:
- Golf courses, tennis courts and community pools
- Gyms and fitness centers
- Community recreational events
- Restaurants, salons, spas and markets
- Cleaning and laundry services
- Transportation services
“The Sun Belt states are where many 55+ communities are located. Many offer lower property taxes and some do not have a state income tax.”
The Pros
Resort-Like Living: Combined with the amenities above, some communities offer nature trails, water sports, private beach access and playgrounds for visiting grandchildren.
Maintenance Services: Most communities provide basic home and community maintenance. Others include landscaping, house cleaning and a range of other daily-chore services.
Lower Taxes: The Sun Belt states are where many 55+ communities are located. Many offer lower property taxes and some do not have a state income tax.
The Cons
Monthly HOA Fees: Homeowners Associations (HOAs) charge monthly fees to cover the cost of the community amenities listed above. Ask yourself how often you’ll use the amenities you’ll be paying for once you move in. Keep in mind, HOA fees increase over the years.
Resale Potential: Since most of the homes in a 55+ community are designed for two people, you need to consider resale potential. There may be a time when you’ll want to, or need to, sell your home. Remember: the pool of potential buyers will be limited to the 55+ age bracket.
The Lifestyle May Not Be For You: Making new friends in a 55+ community can be a challenge. Studies show some former residents report that they didn’t fit in with social cliques or the expectation of joining social events. Others missed the lack of age diversity or being close to their family. Conduct your research before you decide.
Of course, when planning for retirement, budgeting is a priority. Consider working with an FRC™ trained advisor who can help you calculate your projected expenses to determine if purchasing a home in a 55+ community is the best choice for you.
