Are you financially prepared for retirement and the expenses senior living that come with senior living? With Tax Day 2025 behind us, it’s a great time to think about your financial planning.
The cost of retirement
It should come as no surprise that retirement is expensive. But do you know what the actual cost of retirement is? According to many sources, the average US adult over the age of 55 spends $50,000 per year. If you aren’t quite retirement age yet and want to estimate what your expenses may be, there is a simple calculation. It is suggested that in retirement you will spend about 80% of what you spend pre-retirement. So, if you currently spend $60,000 per year you should plan that you will spend about $48,000 per year after you retire. Being financially prepared for retirement now can help you stay knowledge and ready for retirement when it does come.
That can sound like a lot of money when you consider that you will no longer be working to earn a paycheck. This is why planning for retirement is so important. Often times, people are encouraged to start saving for retirement early and there are different schools of thought around how much money you should contribute to your retirement account each year or pay period.
When deciding how much money to put into your retirement account, you need to consider what age you want to retire at and how much money you need to have in your retirement account. Some experts say you will need between 10 and 12 times your annual income when you retire. This calculation should be done using your annual income from before you retire – not the 80% that you’re projected to spend. Using the same scenario as the earlier example, if your annual income before retirement is $60,000, it is recommended that your retirement account be between $600,000 and $720,000. As of 2025, Americans over the age of 65 had an average of about $273,000 in their retirement accounts. That amount is significantly lower than the $600,000 minimum that is recommended for someone who plans to spend about $48,000 per year.
The cost of senior living
You may expect that one of the biggest expenses with retirement is senior living. But, that isn’t always the case. Senior living is a sort of umbrella term with many different options existing beneath it. Like in choosing anywhere else to live, each has pros and cons and different costs associated. You may be surprised that some senior living options are more affordable than you think.
Senior living can include everything from a senior apartment or independent living all the way up to 24/7 skilled nursing care. With options ranging that wide, it’s no surprise that there is also a wide price range. In general, prices can range from as little as $1,500 a month all the way up to more than $13,000 a month.
At The Ohio Masonic Communities, most of our prices range from $1,850 to $7,700. Those ranges include independent living, assisted living, and memory care. The Ohio Masonic Communities typically charges a daily rate for skilled nursing, which involves 24/7 care. Many people use skilled nursing for short-term rehabilitation, and insurance often helps cover the cost, making a daily pricing model more appropriate than a monthly one. Our daily rates range from $294 to $450.
One important aspect to consider in senior living is what’s included. When you’re looking at the cost of one senior living compared to another, looking at what they include, such as utilities, can help you determine the full cost you may end up paying to live there. Being prepared financially for these costs can make the transition to retirement easier. The same can be true if you are comparing the cost of a senior living community to your current living expenses. Consider the bills you pay every month, including utilities, internet and cable, food, et cetera. Some senior living communities, like The Ohio Masonic Communities, include some – or all – of these. It can also include things like access to a fitness center and golf course, maintenance, housekeeping, activities and events, and more.
The role of financial planners
Being prepared financially for retirement and senior living can be confusing. Knowing how much money you should save involves complex formulas and different schools of thought about the best way to estimate your future retirement needs. That’s why there’s an entire profession dedicated to it.
Financial planners work with their clients to determine their retirement goals. Then, they create a plan for saving and investing that will help them to reach those goals. After retirement, a financial planner can help make adjustments to spending or saving as needed to make sure you have what you need now and in the future.
You may think financial planners are only for millionaires. That’s far from the truth. Financial planners are available to help everyone, but sometimes they do have account minimums. They also may charge either a flat annual fee, an hourly rate, or a percentage of the money invested.
Financial assistance resources for seniors
For many, retirement savings alone are not enough. This is where Social Security comes in. With Social Security, to receive full retirement, you must be between 66 and 67 depending on the year you were born. Early retirement can be taken as early as 62, but the retirement income will be permanently reduced. Similarly, waiting until after 67 to begin taking Social Security can increase your monthly retirement income. For someone retiring at 65, the average income is $1,583 per month.
Many older adults rely on Social Security as their only source of income. Even with some retirement savings, many find it a struggle to make ends meet. Thankfully, there are other programs that can provide assistance for older adults. Some of these include Medicare and Medicaid, food stamps, subsidized housing (including income-based apartments for seniors), and Meals on Wheels. To learn more about any of these programs, reach out to the senior center or council on aging in your area.
The Ohio Masonic Communities Resource Center
At The Ohio Masonic Communities, we have our own division focused on connecting adults over the age of 55 with the resources and services they need to thrive. We’re here to answer questions, offer support, help you find resources, and connect you with local services to support you. We have Community Outreach Coordinators throughout the state who can help you over the phone or in person. To speak with someone from The Ohio Masonic Communities Resource Center, call 1 (877) 881-1623.
At The Ohio Masonic Communities, we want everyone to have the resources they need to navigate their journey. If you want to learn more about senior living or the resources we have available, we’d love to hear from you. Give us a call at 1 (877) 881-1623 or contact us here. We have three senior living communities across the state of Ohio – Browning Masonic Community in Waterville, Ohio, Springfield Masonic Community in Springfield, Ohio, and Western Reserve Masonic Community in Medina, Ohio.