If you’re researching retirement communities, you’ve probably discovered there are a variety of lifestyles, names and financial options out there. To help you make a more informed decision, this blog post will discuss senior living entrance fees and the monthly cost.
Entry Fee vs No Entry Fee
As you may have discovered, a rental senior living community may not charge an entry fee, whereas some communities could have an entry fee ranging from tens of thousands to hundreds of thousands of dollars. Does that mean a community that doesn’t charge senior living entrance fees is a less expensive option? Not necessarily. And the difference could come down to the need for a higher level of care. As you determine which option makes the most financial sense for you and your family, here are some things to consider.
- Lifetime costs: The differences in costs between one-time entry fee and non-entry fee communities may not be as high as they appear at first. Especially when evaluated over a longer term. That’s why it’s important to also consider:
- What’s the cost of higher levels of care in the community? (If provided.)
- If a continuum of care isn’t provided, would you have to move if you needed care in the future?
- Is any portion of the entrance fee refundable?
- How does the monthly fee at each community type compare, and what are the services and amenities each one offers?
- Breaking even: According to the U.S. Department of Health and Human Services, 70% of seniors 65 and over will need some form of long-term care in their lifetime for an average of three years. That long-term care could be assisted living, memory care or skilled nursing. In 2020, a study by Genworth — a company dedicated to helping seniors and their families navigate the cost of health care — found the market rates for higher levels of care in the Chicago area were:
- Home health aide — $5,053/month (assumes 44 hours a week) or $60,632/year
- Assisted living — $4,950/month or $59,400/year.
- Skilled nursing with a private room — $8,532/month or $102,383/year
With numbers like that, it doesn’t take long for the costs of care to add up and to see the benefits of one-time senior living entrance fees.
What Makes Peace Village Different?
Here are some specific examples of why you may want to consider Peace Village.
- Lower monthly fees: While you pay a membership fee (also known as an entry fee) coming in, your monthly fee is much lower than you would pay at a rental community. On average, the difference is made up in as few as 13 months.
- Membership fee refundability: Up to 90% of your membership fee is refunded when you leave Peace Village. Or, if your health care needs change, you can use it, as necessary, to fund your stay in our assisted living or memory care community.
- Feeling of community: Many of our residents have lived here anywhere from five to 15 years. At our Life Plan Community, you get to know your Peace Village neighbors and form lasting friendships. Month-to-month rental communities can have a much higher resident turnover.
- Not-for-profit: We serve the community and the residents. Profits are reinvested back into the community in service to our mission of embracing the continuing vitality of our residents by fostering a loving and respectful community in which our residents’ individuality is honored, wellness is supported, faith is inspired, and friendships are made. Plus, we’re managed by a dedicated board of trustees made up of community business leaders.
- Care access: No entrance fee is required to access our on-site care. Our services are provided at predictable, all-inclusive monthly rates for assisted living and memory care, so you never have to worry about unexpected charges. Direct admission of nonresidents is also accepted.
Enjoy Peace of Mind
At Peace Village, you and your family will have peace of mind knowing a continuum of care is available at a predictable monthly rate. If you’d like to learn more about what makes us different, contact us here.