Retirement Community Disadvantages They'll Never Tell You (2024)

At first glance, as wonderful as they might seem, there are some distinct negatives/cons of retirement communities. To be clear, we’re talking about those over 55 active senior places catering to us baby boomers.

The disadvantages of retirement communities include they aren’t cheap, could be in a less than an optimal location, smaller living area, lack of diversity, cliques/gossip and restrictive/excessive rules.

They can range from condo/apartment style facilities to gated communities with individual houses. Some are far better than others, yet all have some drawbacks that need to be considered and addressed.

It’s vital you do your research, checking into ratings and reviews of the places. Also, try and set up a meeting with one of the people on the executive committee to ask some questions. If a short meeting is refused, consider this a warning sign.

You’re pulling up stakes to move so you want to make sure it’s going to be somewhere you’ll be happy.

1.Retirement Communities Aren’t Cheap

Most retirees are looking to reduce their cost of living. One of the negatives of active adult communities is they’re generally no less expensive than traditional home ownership.

And, that may not include additional costs these 55+ villages are notorious for.

Now, one might argue the benefits outweigh the costs. Such as activities, amenities and a maintenance free lifestyle. Yet, any way you slice or dice it, you’re not likely to reduce your costs.

Buy or Mortgage?

Instead of freeing up the equity in your home, in most situations, you’ll be transferring it into your new property. As a general rule, mortgages will be underwritten for only a portion of the value.

Home Owners Association (HOA) Fees

The home owner’s association (HOA) fee is a monthly charge for all the things included. As a general rule, this fee will likely be, at least, a couple of hundred dollars a month.

Depending upon the management, they might include:

·Recreational activities such as workout facilities, pool, nearby golf course, etc.

·A social center with scheduled events.

·Entertainment which could include movies or live performances.

·Gourmet chef prepared meals or crappy cafeteria style food.

·Spas and other specialty services.

·Green areas and gardens.

·Activities and events such as cooking classes, crafts, cultural trips, movie nights, etc.

·Exterior maintenance for buildings, lawns, pools, and much more.

Whether you use these services or not, you’ll still pay the monthly fee. In addition, they commonly increase each year due to inflation and rising costs.