Where Do I Go From Here? A Journey to Independent Living at a Senior Care Facility
The Problem Emerges
Margaret’s Situation
At 75, and recently widowed, Margaret has decided to sell her detached home in British Columbia. She’s in good health but wants to eliminate the responsibilities of homeownership.
The Dilemma
With anticipated net sale proceeds of $800,000, Margaret is faced with a decision about her next living arrangements. She considers three options.
- Purchasing a Condo
This would continue to provide Margaret with equity in real estate and would reduce the day-to-day requirements of maintaining the property. However, condo ownership still involves maintenance costs, that is the strata or condo fees, and even worse, even though the real estate market has gone up dramatically in the decades since she and her husband bought their home in 1980, that does not mean that her condo would necessarily increase in value at the same pace or increase in value at all. It would still be subject to market volatility.
- Renting an Apartment
Instead of purchasing a condominium, Margaret considered renting a similarly sized apartment. That would eliminate the extra fees and the potential for major costs as an owner. If she found she didn’t like the place, renting would also give her the flexibility to move out without huge costs or the potential for loss of value. On the other hand, renting would lack long-term security if the landlord came up with a legally justifiable reason to evict her.
- Retirement Community
Moving to a retirement community, especially one with multiple levels of care, that is, independent living, assisted living, and long-term care (i.e., 24/7 nursing care) seems ideal to Margaret. It will provide her with amenities and a community of people of a similar generation something that appeals to her, but she realizes that she has to gain a better understanding of the costs and commitments involved.
The Struggle and Complexity
Evaluating Options
With a wide variety of options among retirement communities, Margaret explores the various living arrangements. Not only do the various retirement communities have different financial and lifestyle arrangements but in the larger communities, there are multiple options available. This prompts Margaret to ask several questions.
Understanding Costs
What are the upfront and ongoing expenses at a retirement community? Some places have a “life lease” arrangement that will secure Margaret’s right to live in the retirement community. This way she can stay in a place that, while it is not hers as such, allows her to live there as long as she wishes or until she needs a higher level of care. These arrangements typically allow for a portion of the upfront cost to be refunded to her or paid to her estate if she dies while living there. When the lease is resold, Margaret may also be eligible for a portion of any appreciation.
Not all retirement facilities offer this arrangement. Some require an entry fee that secures access to different levels of care. Typically, the monthly fees for living expenses, services, and care would still be required. These entry fees or deposits may or may not be partially refundable.
Still other places charge only a monthly amount without upfront lump sums.
Financial Planning
How should Margaret allocate her home sale proceeds to ensure long-term financial security? Margaret and her husband had a financial planner who had reassured them that their income and expense projections were more than adequate to meet their needs for the remainder of their lives. Following her husband’s death, the financial planner had revised the plan for Margaret alone, assuming a life expectancy of age 100 and the anticipated change to her housing arrangements. While 100 seemed excessive to Margaret at first, the money from her home added to her government supports via the Canada Pension Plan (including the survivor portion from her husband), Old Age Security, and the assets in her RRIF (again including the portion of her husband’s RRIF that she received as the successor annuitant) and TFSA assured her of not running out of money even if she lived longer than usual for a 75-year-old woman. These details removed one of the stressors she had about her future.
Future Care Needs
How will potential future health needs be addressed within the community? One of the important reasons why Margaret found a retirement community appealing is that they offer a “continuum of care.” In other words, as Margaret ages, she can stay within the same community but can access assisted living support and eventually, if required, long-term care with 24/7 nursing services.
It should be noted that not every retirement community offers this full range of services so one of the important considerations in selecting a community to move into will be to understand what is available to you.
Discovering Independent Living
Margaret learns about Cascade Place*, a not-for-profit campus of care in Abbotsford, BC, offering various levels of senior living, including independent living, assisted living, and long-term care.
Independent Living at Cascade Place
Accommodation Options: Margaret is considering a one-bedroom suite in Promenade West, one of Cascade Place’s independent living buildings.
Monthly Rent: One-bedroom suites range from $2,400 to $2,700 per month, depending on the floor and view available.
Services included in the rent are:
- A daily noon meal.
- Snacks (fruit & muffins).
- A full recreation calendar.
- Chaplain care & activities.
- An in-suite storage room.
- Laundry facilities.
- Utilities: Hot water, cable, phone, and internet package.
- Not included in the rent are Hydro (electricity and heat), underground car parking (Margaret still has a car so she would pay extra for this), an evening meal package, and a damage deposit.
Financial Structure: Unlike some retirement communities that require a substantial upfront life lease or entry fee, Cascade Place operates on a month-by-month lease model for its independent living apartments. This approach provides Margaret with greater financial flexibility and liquidity.
Relief and Excitement
Financial Planning
Monthly Expenses
With a monthly rent of approximately $2,700 (a lower-priced unit plus Hydro and car parking ), Margaret’s annual housing cost is about $32,400.
Investment Strategy
- Emergency Fund: Margaret’s financial planner has suggested she allocate $50,000 for unanticipated expenses, down slightly from the $60,000 they held when her husband was still alive. This money is held in a High-Interest Savings Account.
- Investment Portfolio: Margaret has an existing investment portfolio, as noted earlier, held in her RRIF and TFSA accounts. With $50,000 held in chequing and short-term savings, her financial planner recommended that the remaining $700,000 in house proceeds be invested in a combination of globally balanced equities, discount bonds, and Guaranteed Investment Certificates (GICs).
- Income Planning: Since inheriting her husband’s accounts, when combined with her own, Margaret now has more than $1 million in RRIF money. Concerned that this would leave a big tax bill at the end of her life, Margaret and her planner worked out a plan to withdraw more than the annual minimum payments and use the after-tax surplus cash to contribute to her TFSA, to invest in her non-registered account, and to give to her children and grandchildren. While that means paying a little more tax now, she enjoys seeing her family make good use of the money now, when they need it. The RRIF money, along with the interest and dividend payments from her non-registered account as well as her Canada Pension Plan (CPP) and Old Age Security (OAS) benefits more than adequately cover her living expenses and smooth out her tax burden.
Lifestyle Benefits
- Maintenance-Free Living: Freedom from home maintenance responsibilities was Margaret’s primary reason for seeking a retirement community. The relief from managing her house and property was immediate and liberating, allowing her to focus on enjoying her daily life rather than worrying about repairs, yard work, and upkeep.
- Community Engagement: Home maintenance was front of mind for Margaret, but she realized that her new location offered something even more important. Margaret is a sociable person, but that engagement often took place with her husband as they gathered with friends whom they had known for decades. Now alone, she appreciates the access to social activities, fitness programs, and spiritual care, all of which have helped her to thrive despite the loss of her husband.
- Future Care Options: After many years in the same house, moving to Cascade Place was a major disruption, even though it was very welcome. The fact that assisted living and long-term nursing care are available on the same “campus” should she need it, has eased her mind about having to move again.
A Bright Future
Sitting on the patio outside the recreation centre and taking in the warm spring day, Margaret couldn’t help but feel a sense of joy at her situation. After the emotional and regulatory (so much paperwork!) tumult following the death of her husband, she has finally settled into her new situation. Despite the loss, she has re-established:
- Peace of Mind through a secure, engaging, and supportive environment without the financial and physical burdens of homeownership;
- Financial Security, thanks to a well-structured financial plan that maintains her standard of living and preserves her wealth; and a
- Community Connection provided by Cascade Place, which has given her a sense of belonging and access to various amenities that enhance her quality of life.
For those who find themselves in a similar stage of life—navigating loss, change, and new possibilities—exploring retirement community options can be a meaningful step toward greater peace of mind and security. Whether now or in the future, thoughtful planning can help ensure that your next chapter is one of comfort, connection, and financial stability.
If you have moved into a retirement community, or helped a parent or parents to do so, I’d love to hear about it in any of the social media options to which this blog is posted. I am confident that your experience would be instructive to others.
*Cascade Place is fictitious.
This is the 282nd blog post for Russ Writes, first published on 2025-03-17.
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Photo by Julia Vivcharyk on Unsplash