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Health and finances are two of the most important considerations when it comes to retirement planning, and the two are often interlinked. It’s possible to have some degree of predictability on finances, however, health is less easy to predict – sometimes even impossible. Barry Kaganson, CEO of Auria Senior Living – a company which develops, owns and operates gold-standard senior living communities in South Africa – says: “The only way to have a real chance of ‘control’ is to plan ahead which will help give you and your family more peace of mind.”
According to Kaganson, these are the top 5 things you need to consider now when planning for retirement.
1) Decide on the kind of living space you’d like to retire in
The word ‘retirement’ often comes with a degree of worry about loneliness and isolation. Kaganson says: “It is important for older people to be in an environment where they can easily socialise and have access to opportunities for personal enrichment.” People often worry that moving to a senior living environment presents a trade-off – the sacrifice of personal freedom and a meaningful life for a ‘safe’ but limited living arrangement. “This doesn’t have to be the case. Modern senior living communities like Auria are vibrant, social and attractive places to live – destinations rather than options of last resort – which helps eliminate feelings of guilt for the family or apprehension on the part of the older relative,” says Kaganson.
2) Think about your risks and the kind of care you might need
There are a number of risks that people face as they get older. Dementia is becoming more prevalent worldwide and there is a greater awareness of its complications than in the past. However, not everyone is well prepared to take the best possible steps to mitigate the risk and progression of dementia. Loneliness and isolation are known to be contributing factors in the onset of dementia, so the opportunities for socialisation and the engaging and stimulating lifestyle offered in well-structured senior living communities is often a mitigating factor for dementia.
Falls are another common concern, as the agility of seniors decreases and their susceptibility to injury changes with age. “An advantage of senior living communities is that they are able to make exercises that are specifically targeted to improve general conditioning, balance and strength a part of residents’ regular routines. Frequent, pro-active assessments can also assist in identifying residents who are at higher risk for falls, and various interventions can be implemented for those at risk. Emergency response in the event of a fall is a strong factor in recovery and treatment, and this can be offered rapidly in a senior living community,” says Kaganson.
3) Consider your physical safety
Physical security is a factor that cannot be ignored, particularly in the South African context. An advantage of senior living communities is that they make high levels of security a priority. They are well protected from outsiders, and in an environment where staff and residents know one another, it is also easier to pick up on changes in normal behaviors among residents and alert the appropriate people.
4) Decide on your preferred ownership model
The two most common investment types for retirement or senior living communities are sectional title ownership or life rights. Sectional title complexes are run by a body corporate – committees made up of the residents themselves, who are often ageing and many of whom have little experience running a complex operation. In a life rights model, the owner and/or operator is incentivized by means of long-term capital appreciation. This means that they are completely aligned with residents in ensuring that the community is run optimally over the long-term. In addition, life rights communities often have monthly levy structures that are determined upfront, meaning that prospective residents are able to plan their finances, with few “surprises” in the future. Different investment types come with different responsibilities so it’s important to make oneself aware of the differences in these models in order to make a more informed decision.
5) Put your name on a waiting list early on!
Planning ahead and putting your name on a waiting list in good time is important. Ideally, one wants to make the decision to move when one wants to, rather than when one has to, as it offers more choice. “At Auria, we believe that your later years should be defined by choice, and not by compromise. Senior living communities can provide great peace of mind for both caregivers and their loved ones and should be a first choice rather than a default option,” says Kaganson. “Most of these communities have extensive waiting lists, which is why we encourage people to plan ahead.”