Friday, 24 January 2020

Things to consider while choosing a retirement home

Capitalstars Investment Advisor
Senior living housing projects and assisted living facilities are transforming the way senior citizens live during their golden years.

While many of us have grandiose notions about settling into a cottage in the hills or traveling the world after retirement, the reality is often very different. The need for security and stability trumps all else.

Retirement planning is therefore crucial, but finances are not the only thing to worry about. In 2011, roughly one in 11 Indians were over the age of 60.

According to projections by the Census of India, this figure is expected to grow to around one in eight by 2025. This calls for major sociological changes to accommodate the needs of senior citizens.

What is senior living?

Given that India has no social security framework to offer senior citizens the support they need, both financially and socially, the private sector has stepped in. “Senior living options are definitely on the rise in India, particularly in the past few years, propelled not only by the growth of nuclear families with children living abroad or away from their parents but also by the increase in the number of seniors who are financially independent.

These facilities feature conveniences like security services, cleaning and maintenance facilities, medical care and meals. There are two categories of senior living services: independent living and assisted living. The former includes housing units designed with seniors in mind. These projects have special features like skid-proof tiles, ramps for wheelchair access, grip rails, panic buttons, etc. Assisted living, on the other hand, features round the clock care and is more suitable for older seniors or those with ailments. There are attendants present to assist residents with tasks like eating, dressing and getting around.

A group of niche developers across the country have come up with residential projects aimed at senior citizens. These are typically equipped with facilities like health centers, specialized kitchens, gyms and recreational spaces. Most offer housekeeping, maintenance, and laundry services as part of a service package. Some have doctors, therapists, and dieticians on-site to help their residents with physical and mental health concerns. Needs like a specific diet or exercise regimen are also accommodated.

A wide range of options
The options range from luxury to low budget. While the more expensive can be priced in crores, there are also plenty of reasonably priced options. Ashiana Housing Limited’s senior living projects, Jagriti Dham in Kolkata, Kshetra in Hyderabad, Oasis Senior Living Communes and Dignity Lifestyle Township, in Neral, Maharashtra, and are a few examples. These facilities offer rentals, leases and residential units for sale at slightly higher prices than market rates, complete with a lifestyle element and opportunities to socialize.

Choose carefully
While there are various advantages of moving into a senior living facility, there are also a few downsides that you should consider. For instance, while most such facilities promise medical attention in emergencies, the facility can deny having any direct responsibility for critical care unless otherwise specified in the contract.

Senior living: What are your options?
Facilities offer a choice of renting, leasing or buying specially designed units.

OPTION 1: Rent
Pay a registration fee of Rs 5 lakh. A refundable deposit of Rs 20 lakh. Also, pay Rs 25,000 for services each month.
Our assessment: This option allows you to test the waters before you make a decision. You can choose to have your deposit refunded and leave if the lifestyle or facility doesn’t suit you.

OPTION 2: Lifetime lease
Register with a fee of Rs 5 lakh. Pay a monthly rent of Rs 30,000 for the rest of life. Also, pay Rs 25,000 for services each month.
Our assessment: This is a major commitment. Once you lease the unit, you’re tied in for the rest of your life. It would be wiser to rent first and then migrate to a lifetime lease when you see fit.

OPTION 3: Buy
Pay between Rs 45 lakh and Rs 1 crore to buy 2BHK units. Pay nominal charges of Rs 500 for meals, cleaning. All other services are charged individually.
Our assessment: This gives you complete ownership of the property and you can choose to sell it or pass it on to your legal heirs. However, some facilities have conditions about only senior citizens being eligible to buy or occupy the units. Carefully study the agreement to know your rights.

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