Cut your cost of living with a new retirement home
Worried about rising prices? Retirement living could save you significant sums.
Retirement living developments bring lots of benefits, from the beautiful, easy-to-manage, contemporary properties to the friendly community on your doorstep, but you might not have considered that there are substantial financial benefits too – which is reassuring if you are concerned about your retirement budget.
Save £1,200 a year on running costs
Research from McCarthy Stone found that downsizing from a three-bedroom family home into one of their purpose-built retirement apartments could save you £1,200 a year*. That’s because of lower energy bills, as well as cheaper maintenance and running costs.
Beat rising energy prices and save around £435
The average saved on energy bills if you move into a new build home is an impressive £435 a year**. This is thanks to eco-friendly construction methods, which mean energy-savings are built into premium quality new properties. Heavily insulated walls and the latest spec double glazing will keep rooms warmer, while clever design maximises natural light. Highly-rated energy-efficient electrical appliances like ovens and fridge-freezers will be fitted as standard and many new retirement apartments offer economical – and luxurious – underfloor heating too.
Save thousands of pounds on care
If you, or a friend or relative, needs extra care support, then an apartment in a retirement development with care on site could equal considerable savings. The average person in a residential care home pays £32K a year. In contrast, someone in a McCarthy Stone Retirement Living PLUS apartment with eight hours of care per week pays on average £18,730 a year.***
Retirement living options for every budget
If you want to move into a retirement property but are unsure what you can afford, you might be pleasantly surprised by the number of options available – be sure to ask lots of questions.
Questions to consider:
Do I have to buy? What alternatives are there?
You don’t want to buy a property outright, it might suit your financial circumstances to rent, for example, or part buy, part rent. You may also want to look into the new Older Persons Shared Ownership. Be sure to ask what options are available.
What is included in the property price?
Ask for specific details on things like carpets, fitted kitchens and white goods.
What communal facilities and services are on offer?
Retirement developments often offer a range of communal facilities and services that are paid for by the service charges (see below) – these can include things like an onsite manager, landscaped gardens, subsidised restaurants or health and beauty centres.
What is included in the service charge – and how much will it be?
Service charges usually cover the exterior maintenance of the building and the grounds, including gardening, repairs and window cleaning, as well as the upkeep of the communal internal areas like lounges, event rooms and lifts. It could also include the services of an onsite manager and safety features like 24 hour emergency call out. Many people find the simplicity of a monthly service charge makes it easier to budget and often saves them money on comparable services.
To find out how much you could save by moving into a retirement property read McCarthy Stone’s seven step guide to financial planning for retirement living. Or search for a retirement property now.
*Typical net saving when running a McCarthy Stone apartment when compared to the costs of running a three-bedroom house is £1,200 per year. Source: Internal research carried out by McCarthy Stone, 2018
**Research carried out by HBF, 2021
***Research carried out by Laing Buisson, 2018
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