4 Tips for Gen X on Looking For That Future Perfect Retirement Home

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

According to Allianz Life Insurance’s 2024 annual retirement study, 55% of Gen X respondents wished they had saved more money for retirement. With that, it also revealed that 62% of Gen Xers felt confident about financially supporting everything they wanted to do as retirees. With most of Gen X falling between the ages of 44 and 59, they’ll likely be considering retirement soon, meaning they’ll have to start thinking about their expenses and future living setups.

Focusing on location, affordability and future lifestyle needs is essential when deciding on retirement goals. We will share expert tips for Gen Xers on finding their ideal retirement homes.  

Look Into Downsizing

Chad Gammon, a CFP and owner at Custom Fit Financial, noted that downsizing could be an excellent strategy for Gen X retirees trying to figure out the perfect retirement home.

“Selling your current home for a smaller, more affordable property can unlock cash from your home equity. If you still have a mortgage, this might allow you to pay off the mortgage and secure a debt-free living situation,” he said.

When setting up a financially sound retirement, it’s essential to address considerations like downsizing options and pricing. Selling your current home could benefit you if you want to be able to afford a certain retirement community or if you want assistance with your expenses when you leave your job. 

Gammon added, “A smaller home or apartment often has lower costs, such as utility bills, insurance and property taxes.”

By looking into downsizing right now, Gen X can feel more confident about their finances as they head into their golden years. The goal is to be proactive about retirement planning so that you don’t have to stress about managing bills in the future. 

Age in Place If You Can

“Gen Xers who own their homes outright can see the biggest potential cost savings if they choose to age in place for as long as possible,” said James Bowdler, the founder of PrimeCarers. “Nursing homes are generally overcrowded and insufficiently staffed, leading to a possibly unsafe environment that could compromise your health and safety. The attention and care provided by staff may be less than what you require.”

Bowdler noted that high nursing home costs make this option highly preferable because it’s no secret that assisted living options can be expensive, and many aren’t prepared for these hefty monthly payments. According to research from the National Council on Aging (NCOA), the average cost of assisted living is around $4,500 monthly or $54,000 annually. The price will vary based on the type of community, the state you’re located in and the level of care you require. However, the harsh reality is that assisted living may be too costly for many Gen Xers who want to retire in the next decade or so.

Bowdler expanded on retirement costs:

“Retirement expenses in assisted living facilities range from $2,000 to $7,000 per month, while people in independent living communities shell out anywhere from $1,800 to $6,000.”

While the costs will highly depend on the type of facility you want to live in, Gen Xers have to accept that they may have to seek alternative retirement living setups for when they’re ready to leave the workforce. If you start working on the planning now, you could age in place by staying in your current home.

Bowdler concluded, “When you age in place, you can remain self-sufficient for longer, retain your independence and continue meaningful participation in your community.” 

This leads us to the next option… 

Try Homesharing

“Rather than downsizing or moving into a retirement community, Gen Xers could stay in the homes they love while earning extra income through homesharing,” said Sean McGrail, co-founder of Home Sweet Homeshare. “This provides a flexible and financially sound way to maintain their lifestyle in retirement without the need for drastic life changes.”

Homesharing is becoming increasingly common as retirees deal with rising costs for assisted living facilities. You could share your home with a younger person who helps you with basic tasks so you don’t have to rely on hiring staff.

McGrail elaborated, “Gen Xers can stay in their homes longer by partnering with a younger houseguest who assists with tasks like cleaning, cooking, and gardening. This arrangement preserves their independence while ensuring that essential home upkeep is manageable.”

Check Out 55+ Communities

Gammon pointed out that 55+ communities are another option for Gen X.

“These communities have a lot of amenities (swimming pool, gym, pickleball courts), but they also have monthly or annual fees that you should check into.” 

If you’re unsure of what type of retirement home setup you would prefer, you could look into this alternative choice. If you’re considering this option, you should start by visiting the communities, as they each have their own vibe. Some are for very active retirees, while others are quiet and low-key so you can relax.

Share This Article: