By the time you retire, you may have decades of savings based on rough estimates of projected living expenses. However, with retirement approaching (or perhaps already upon you), you’ll likely want a more concrete idea of your ongoing monthly budget as you settle into this next stage of life.
As you weigh options such as remaining in your current home or moving to a senior living community, what you decide may ultimately depend on the cost of independent living in Oklahoma City.
Taking stock of various senior-friendly living arrangements and the potential costs associated with each will help you make some important decisions about your retirement lifestyle. It’s important to remember, even though retirement is on your immediate horizon, continuing to think about your current and future needs will serve you well for the rest of your life.
Evaluate Short-term Expenses
Planning your monthly budget during retirement is similar to any other stage of life, with adjustments that reflect how you’ll be spending your time. For example, you may trade your work commuting expenses for leisure travel, and the money you once spent to maintain your professional wardrobe could get reallocated to your favorite hobby.
To get a realistic look at your senior living expenses in Oklahoma City, start by breaking your monthly budget based on your current living arrangements into categories such as essentials, discretionary and other. Under essentials, include items like housing, utilities, insurance, taxes, phone, internet, cable, transportation, groceries, clothing, personal care items, medication, health care and payments on any outstanding debts.
In your discretionary bucket, account for things like travel, entertainment and hobby-related expenses. The final category can be tailored to your personal circumstances. It might include pet care, home repairs or other ongoing bills you anticipate needing to pay.
Having a strong understanding of these amounts will help you compare alternate living options and determine the financial implications of making a change.
Think About Long-term Expenses, Too
One mistake many seniors make is ignoring the reality that retirement can bring unexpected changes in your physical and mental health beyond your control. That’s not an intentional oversight; it’s just hard to imagine that you could need help with your daily care when you’re still so healthy and active.
The fact is, only about a third of 65-year-olds don’t ever rely on long-term care. At 65, you actually have about a 70% chance of needing some level of long-term care in the future.
That’s not to bring doom and gloom to your planning. Rather, it’s a suggestion that when you’re evaluating your living options, it’s smart to consider what each decision looks like 10 years from now.
For example, does your home have stairs, either inside or as an access point? Are you confident you’ll be able to use them to safely move throughout your living space and get out by yourself in an emergency?
If you eventually need additional care, such as help with activities of daily living—like grooming, bathing and eating—do you have the resources to bring those services into your home? In Oklahoma City, you can expect to pay about $3,000 a month to have a home health aide come into your home for three hours a day, seven days a week. Plan on another $3,000 a month if you need help keeping up with housework like laundry, vacuuming and preparing meals.
By comparison, the average monthly fee for an assisted living community is about $4,600 in Oklahoma City. (For independent living, average monthly rates in Oklahoma are about $2,700.) With that context in mind, it makes sense to take a closer look at community living from a long-term financial perspective.
Senior living communities that offer a continuum of care—often called a Life Plan Community or Continuing Care Retirement Community—can be especially appealing. That’s because although you would move in as an independent living resident and take advantage of all of the community’s amenities in the short term, you have the comfort of knowing advanced care is available if you need it down the road.
Break Down Community Expenses
If the idea of a senior living community appeals and you want to know more about the cost of independent living in OKC, you’ll need to get familiar with the different types of fees and plans you might encounter when you begin comparing communities.
Many senior living communities, including Epworth Villa, require residents to pay a one-time entrance fee upon moving into an independent living apartment or cottage. This fee provides a residence, access to community activities, and access to all services, programs and amenities provided by the community.
Residents also pay a monthly fee, which covers nearly all of the ongoing monthly expenses, including all utilities except telephone, expanded cable and internet connection, regular linen and housekeeping services, exterior and interior maintenance, mail service, full-service dining, 24-hour emergency call system, local transportation and assigned covered or garage parking.
The entrance and monthly service fees depend on how many people will live in the residence; fees for a couple aren’t double what a single person would pay, but they are higher. In addition, fees vary depending on the type of residence, type of financial agreement and refund plan selected.
Choosing Your Residence
If you think you would enjoy the peace and privacy of your own living space while still taking advantage of the benefits of community living, a private cottage may be exactly what you need. Epworth Villa offers eight distinct cottage floor plans with open-concept layouts and an abundance of natural light. Entry fees start at $244,445 for these private residences featuring yard space for flowers, gardening and outdoor living, and indoor living space such as sunrooms, studies and hobby rooms in some cottages.
For those who are more budget conscious or prefer the social opportunities that come with apartment living, entry fees start at $66,365 for a 405-square-foot studio apartment at Epworth Villa. Floor plans range up to a spacious 2-bedroom apartment with more than 1,500 square feet of living space, including two bedrooms with attached bathrooms and a powder room for guests.
Selecting a Financial Agreement
At Epworth Villa, residents can choose between two financial programs: LifeCare and Fee for Service.
With LifeCare, your one-time entrance fee and monthly service fee are based on a long-term plan. If your needs extend beyond independent living, such as assisted living or memory care, you can access that care within the community with minimal increase in the monthly service fee. That means you have access to care for life at predictable rates. Another benefit of this program is the possibility of treating your entrance fee as a pre-paid medical expense when you file taxes (a tax advisor can guide you based on your personal financial situation).
For someone seeking lower entrance and monthly fees, the Fee for Service program is an attractive alternative. While residents receive similar housing and lifestyle benefits, additional health needs aren’t factored into the fees. Residents can still access those services if they are needed, but they pay at current rates, rather than locking in rates ahead of time. Aside from lower fees, some residents prefer this approach because they avoid pre-paying for care they may never need.
Considering Refund Options
Each financial program also includes refund options that allow residents to make decisions based on their available assets and desire to return funds to their estate for their heirs.
We’ll Do the Math
With so many factors and variables to consider, you may need help sorting through the options to determine your personal cost of independent living in Oklahoma City. Our Independent Living Affordability Calculator is a great starting point. You can answer a few simple questions, and our team can help guide you toward a perfect match at Epworth Villa. Our team is also available to answer your questions by phone or during a scheduled tour.
