Choosing where, and how, you want to live in retirement is a deeply personal decision. Factors such as healthcare needs, lifestyle preferences, community, costs, and long-term flexibility all play an important role. Understanding the different retirement living options can help you make thoughtful choices for yourself or for someone you love—and ensure those choices align with your overall financial plan.
Aging in Place
What it is: Staying in your current home for as long as possible.
Best for: Independent individuals with a strong support network, and are in fairly good health.
Planning considerations:
While remaining at home can feel comfortable and familiar, costs often increase gradually. Home modifications, in-home care, and support services can add up over time. Planning ahead for these potential expenses, and thinking about social connection, is key.
Independent Living
What it is: Age-restricted communities offering housing, amenities, and social activities with minimal services.
Best for: Active, self-sufficient retirees seeking simplicity and community.
Planning considerations:
Monthly fees can be predictable, but expect them to rise over time, and may replace many everyday expenses like home maintenance. However, these communities typically don’t provide medical care, so it’s important to plan for how future needs might be met if they arise.
Assisted Living
What it is: Residential communities that provide help with daily activities such as meals, medication management, and personal care.
Best for: Individuals who need some support but still value independence.
Planning considerations:
Costs vary based on the level of care required and can increase over time. Many services are bundled into one monthly fee, which can simplify budgeting but should be reviewed carefully as needs change. Many assisted living facilities have add-on services, you may choose, that may increase the monthly fee.
Continuing Care Retirement Communities (CCRCs)
What it is: A tiered community offering independent living, assisted living, and skilled nursing—often all on one campus.
Best for: Those who want long-term care continuity and the ability to remain in one community as needs evolve.
Planning considerations:
CCRCs typically require a significant upfront entrance fee in addition to monthly costs. Contract terms and future care coverage vary widely, making financial planning an important part of the decision-making process.
Memory Care and Skilled Nursing
What they are:
Memory care provides specialized support for individuals with cognitive decline, while skilled nursing facilities offer 24-hour medical care and rehabilitation.
Planning considerations:
These options tend to be the most expensive and are often needed unexpectedly. Medicare generally covers only short-term skilled nursing care, up to 20 days when a co-pay kicks in for the next 80 days, after that it is self-pay. (The 2026 coinsurance for days 21 through 100, per benefit period, is $217.00 per day.) This makes advance planning essential.
Planning Ahead with Confidence
Needs and preferences can change over time, which is why flexibility is so important when planning for retirement living. Exploring your options early—and understanding how they fit into your broader financial picture—can help reduce stress and bring confidence to your decision-making process.
Talking with your family and your advisor about where you want to live and how you want to be supported can help ensure you’re prepared for whatever the future brings.