One of the most important considerations when reviewing Retirement Home living is the cost. This is not surprising since the monthly fees can be significant. There are many types of costs associated with this lifestyle including fixed, fixed-optional and variable-optional costs. This post explains what to expect when touring a potential retirement home and provides a free, downloadable spreadsheet as a template for your own use.
Before getting the details of costing, it is important to note that there a minimum cost, a practical maximum cost and an approximate average for a given level of care in any particular home. Each retirement home provides prospective residents with a Tenancy Agreement that outlines the schedule of costs for that facility. To estimate the average monthly cost, enter the costs from their document into the spreadsheet provided below. You can create another worksheet for a retirement home to simplify cost comparisons.
Now for the types of costs …
One-time Costs
Before the first day of living in a retirement home, you can expect to pay some one-time costs such as the cost of furniture purchased specifically for the home, moving costs and installation charges such as cable TV equipment.
Every Retirement Home has three types of costs: fixed, fixed-optional and variable-optional. The following breakdown is typical but will vary by brand and facility
A. Fixed costs
1. Rent
These costs form the base rent for each unit and are the starting point for calculating total costs. They are quoted as a monthly amount and are the cost of accommodation consisting of:
- Monthly rent for a unit
- Appliances
- Utilities (hydro, gas, water)
- Heating Cooling units
- Emergency/fire safety systems and equipment
- Telecom connections
2. Basic Services
- Meals
- Snacks 24 hrs/day at an in-house “bistro”
- Access to amenities
- Use of laundry facilities for self-use
- In-house Social, Health and Spiritual care events
- Group transportation
- Access to health-care staff
- Parking spot (first come)
3. Personal Services
- Pharmacy delivery and consultation
- Light housekeeping
- Basic laundry – linens and towels
B. Fixed-Optional Costs
These are usually bundled into packages such as an Assisted Living Package and are charged on a monthly basis. Typical inclusions:
- personal care (dressing, grooming, bathing)
- personal laundry
- medication and diabetic administration
C. Variable-Optional Costs
These are personalized, discretionary supports and are billed on a per incident/request or per month. They may be temporary or on-going as needed. Examples:
- personal care (dressing, grooming, bathing)
- medication and diabetic admin
- injections
- eye drops
- nursing service
- porter service
- companion service
- food-tray service
- bed-making
Another way of looking at costs is to view them as internal or external costs. Internal costs are paid to the retirement home whereas external costs are paid to people or outside organizations who provide products or services in the home. Examples include telecom companies, chiropodists, denturists and visiting hair stylists.
Free, downloadable spreadsheet for your own use … click below
Retirement Home Costs Template Spreadsheet
The file will be updated periodically. Version 1 provides the basic template.
You are welcome to comment below with any helpful, pricing resources that you have discovered.
You may notice some Canadian spelling in these posts. The words may look odd but that’s how we spell them. We’re used to it.
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Author:
Unless otherwise credited, all posts are happily authored with a quill pen …
Paul Ferri, Broker, ASA (Accredited Senior Agent)
RE/MAX Unique Inc. Brokerage*, Toronto, Canada
*Each office independently owned and operated.
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