.png&w=256&q=75){kind=small}
How Much Does It Cost to Live in a Retirement Community?
Date Updated: January 3, 2025
Written by:
Sarah has produced thousands of articles in diverse niches over her decade-long career as a full-time freelance writer. This includes substantial content in the fields of senior care and health care. She has experience writing about wide-ranging topics, such as types of care, care costs, funding options, state Medicaid programs and senior resources.
Reviewed by:
Kristi Bickmann, a licensed Long-Term Care Specialist, represents top-rated "Traditional" & "Hybrid" LTC companies. Serving associations such as the American Nurses Association, she's a licensed insurance agent in 27 states. Specializing in insurance products for seniors, Kristi helps hundreds of families every year protect assets, retirement, and loved ones. She understands aging concerns firsthand, having assisted her own parents. Kristi ensures accuracy on topics about senior long-term care and its consequences.
Per person, it costs around $1,000 to $5,500 to live in a retirement community monthly. Prices vary significantly, depending on the community type, required services and location. For example, independent living residences tend to charge less than assisted living communities. Additionally, payment options vary among settings.
Independent Living Versus Assisted Living
Independent living residences or 55+ communities provide maintenance-free environments where older adults can access diverse amenities and leisure activities. Seniors benefit from scheduled housekeeping, and many communities offer meal plans, allowing residents to cook for themselves or enjoy effortless dining with their peers. As well as their private homes, seniors can access shared spaces, such as clubhouses, gyms, swimming pools and gardens, and they can join resident- and staff-led social events, activities and excursions.
Assisted living communities also offer on-site recreational amenities and leisure programming. Similarly, rates cover property maintenance, housekeeping and meals. Unlike independent living, assisted living includes care services for seniors needing daily assistance. Caregivers follow customized service plans to support individuals with everyday tasks, such as bathing and dressing. Some facilities offer medication management services and nursing oversight, and they may coordinate with external health care providers and facilitate on-site wellness services.
Costs of Independent Living and Assisted Living
Some communities only offer one type of senior living; others — commonly known as continuing care retirement communities — accommodate seniors’ changing needs. Many aspects affect pricing, including:
- Geographic location
- Required care and support
- Facility amenities
- Accommodation types
- Inclusive utilities
- CCRC contract types, entrance fees and service charges
- A la carte assisting living services
No national database exists for independent living fees, and pricing structures vary between stand-alone independent living residences and CCRCs. Excluding potential buy-in fees, independent living typically costs less than assisted living. According to Genworth’s Cost of Care Survey, assisted living residences charge a median of $5,350 per month nationwide in 2024. However, while each resident pays for personalized care services, couples share housing costs, reducing their overall fees.
Financial Options for Retirement Communities
Assisted living residents may qualify for financial assistance via regular Medicaid or waiver programs, and the Program of All-Inclusive Care for the Elderly operates in specific locations. VA benefits, such as Aid and Attendance allowance, can also reduce out-of-pocket expenses. Most seniors use private pay options, including:
- Long-term care insurance
- Life insurance
- Private income
- Savings and assets
- Reverse mortgages
- Loans
No assistance programs pay for independent living, and older adults must use their own funds, private insurance or loans. However, veterans who satisfy homebound requirements qualify for VA Aid and Attendance regardless of where they live.