50+ Lifestyles

Aging and You

Happy New Year 2025!

By Julie Arndt
Marketing Director at Ridgecrest Village

As we make plans and new goals for 2025, it’s a good time to look back to 2024. According to the U.S. Bureau of Labor, average inflation was up 2.6% for the year through November. Overall, things are looking good for 2025 as inflation reportedly continues to come down. I personally have not found that to be the case and suspect many of you may feel the same, especially when you open your bill for your annual homeowner and auto insurance renewals this year.

This is the third year in a row my homeowner insurance has increased by over 20%, even though I have not filed a claim. Nationally, rates have risen around 19% with the primary reason being inflation and weather-related natural disasters, according to a study by Guaranteed Rate Insurance cited in PR Newswire. It varies by state. In another study, since 2018 insurance rates in Iowa have increased by 34%, compared to Illinois which had 45% increases (realtor.com).    

Historically, other than those teen years when our children were learning to drive, our insurance was a very small portion of our monthly budget. It’s one of those expenses that has silently snuck up on us, now accounting for nearly one third of our fixed monthly cost. With this being one of our highest household expenses, it has given me pause to consider how older adults who are living on a fixed income can absorb this ever-escalating cost.

I write a lot about the benefits of considering a retirement community, but frankly I have never considered the soaring cost of homeowner insurance high on the list of reasons until now. There doesn’t seem to be an end in sight, and as I look at my own future retirement one day, this is a factor. Will our homeowner insurance at some point equal or surpass our property taxes?

For many of you, this may be the year to make the transition from home ownership to renting in a senior retirement community. By the time you factor in the inflated cost of homeowner insurance, food, utilities (gas, electricity, water, garbage), internet, television, property taxes, and general maintenance, you may find that senior housing is much more affordable than you would think.

In most senior housing communities, you can expect to have many, if not all, of these expenses included in your rent. The community may require, or at least suggest, that you have renter insurance, which is typically far less expensive than homeowner insurance. It would cover personal items in the event of a disaster and may even provide some liability coverage should you be found at fault for damage to another person’s property. Regardless, it is important to review your coverage with your agent and be familiar with what your insurance covers.

If you are contemplating a move, the prime selling season for homeowners is just a few months away. We already have folks in line to move into Ridgecrest this spring after the selling season arrives. You don’t have to wait until you sell your home to rent an apartment or cottage in senior housing. Some find it much less stressful to secure their new space and move in slowly while downsizing and selling their property.

If you would like to discuss how this all works, do not hesitate to give us a call at Ridgecrest Village. We have a little something for everyone at Ridgecrest and can help make your transition into retirement living as seamless as possible.