How Do the Finances of Senior Living Work?
For many people, the decision to move to a senior living community like Abbey Delray South isn’t about whether they want the lifestyle; it’s about whether they believe they can afford it. Assuming you cannot afford a retirement lifestyle in Delray Beach, Florida, is a mistake, because the options to finance the retirement lifestyle you’ve worked so hard for are likely more viable than you have imagined.
“One of the biggest mistakes we see seniors make is refusing to research their senior living options because they think it’s out of reach for them,” says Keslerme Thelemaque, Abbey Delray South executive director.
These misconceptions are understandable, of course, because there are nuances to financing senior living. Clearing up these mistaken beliefs may require a conversation or two with your financial advisor, a tax professional, and the sales team at a senior living community. But Thelemaque advises retirees to start considering their options now rather than waiting.
“Sometimes, the most important piece of the puzzle isn’t having all the answers,” he says. “It’s simply starting the conversation. At Abbey, we offer so many options to make your retirement lifestyle more affordable.”
Don’t Let Financial Uncertainty Keep You From Exploring Senior Living
As a community offering a continuum of care — and that is recognized for the second year in a row as one of America’s Best Continuing Care Retirement Communities on Newsweek’s 2026 list — we are a great resource for seniors and their families who are looking for answers on how to fund this exciting phase of life.
Every person’s financial picture is unique, but the good news is that many of the assumptions people make about paying for senior living aren’t true. To start your research, here is a list of terms Abbey’s team has prepared for you and your loved ones.
Glossary of Senior Living Finance Terms
ENTRANCE FEE
A one-time payment, called an entrance fee, is made when you move into a community like Abbey Delray South that offers a continuum of care. The entrance fee helps secure your residence and provides access to the community’s services and amenities, and on-campus healthcare should you need it in the future. Depending on the contract you choose, a portion of the entrance fee may be refundable to you or your estate.
MONTHLY SERVICE FEE
This recurring monthly payment covers many everyday living expenses, such as maintenance, utilities, dining, housekeeping, transportation, wellness programs, social activities, and access to community amenities. Here’s a glimpse of just some of the amenities at Abbey:
- Onsite dining venues
- Gorgeous outdoor gathering spaces
- Heated pool & spa
- Indoor pickleball court
- Fitness center & aerobics studio
- Library
- Shuffleboard
- Golf driving range & putting green
- Woodshop
- Card room
- Arts & crafts studio
- Resident gardens
- Billiards room
LIFE CARE
At Abbey, we offer independent living, along with a continuum of care that includes personal care, rehabilitation, and skilled nursi
ng. With a Life Care plan, you have access to everything offered in independent living, along with the assurance of care right here on campus, should you need it as you age. The best part? That care is provided at a predictable rate, locked in when you sign your Life Care plan.
PRIORITY ACCESS
When you move into a community like Abbey Delray South, your Life Care plan affords you priority access to care right here in the community. This makes aging in place easier and more affordable.
ESTATE PROTECTION
Many entrance fee communities offer different refund plans. Abbey Delray South’s Life Care plan help preserve a portion of a resident’s assets for their heirs. Depending on the contract you select, some or all of your entrance fee may be refundable to your estate. Refund percentages and conditions vary by community and contract type, so it’s important to ask about this aspect of financing your retirement lifestyle.
TAX BENEFITS
In some cases, a portion of an entrance fee and certain monthly fees may qualify as prepaid medical expenses for federal income tax purposes, potentially making them deductible. Because tax laws change and individual circumstances differ, retirees should consult a qualified tax professional for guidance.
LONG-TERM CARE PLANNING
Preparing financially and practically for the likelihood you may need additional assistance or skilled nursing care later in life is a big part of the financial picture as we age. A community like Abbey Delray South that offers independent living and a Life Care plan allows you to make those arrangements before a health crisis occurs.
Prioritizing What Matters Most
To ensure you have the resources to support the retirement lifestyle you want, evaluate these four factors:
- Your income
- Your savings
- Your investments
- Your future expenses
For many people, their home represents one of their largest financial assets. You don’t necessarily have to sell your home before beginning your senior living journey. In fact, many future residents begin planning well before their home is on the market. Part of that planning involves figuring out what matters most to you in this next phase of life.
The overall financial and lifestyle benefits of choosing a community with a Life Care plan are many. In addition to maintenance-free living and amenities that make life easier (and more fun!), residents value the assurance of knowing they will have access to future healthcare on campus at more predictable costs than they might experience elsewhere.
At Abbey, we offer independent living in artfully designed apartments and spacious Garden Homes, along with higher levels of supportive care, should you need them in the future, including:
Choosing where you will live is one of the most important decisions in a comprehensive retirement plan. The broader process of preparing for retirement involves more than considering your finances. Remember to consider future healthcare needs, the kind of lifestyle you want, and any personal goals you have for living your best life. All of these factors play a role in determining what makes sense for you.
That’s why the best first step isn’t trying to solve everything on your own; it’s simply learning what’s possible.
Learn as Much as You Can About Senior Living
“Many people are surprised to learn there isn’t just one entrance fee option,” Thelemaque explains. “Different residence styles, floor plans, and contract selections provide a range of investment levels to fit different circumstances and desires.”
Abbey Delray South offers Type A and Type B Life Care contract options. While each contract works differently, both are designed to provide valuable healthcare benefits and greater predictability for the future.
Some residents prefer the comprehensive protection offered through a Type A contract, while others choose the flexibility of a Type B option based on their personal financial goals, anticipated healthcare needs, and retirement plans.
Rather than wondering which option is right for you, our team can walk you through each contract and explain how they compare in clear, understandable terms.
Our team can discuss timelines, planning strategies, and resources to help coordinate the transition so you can move when the time is right, not when circumstances force the issue.
Today’s retirees have access to a variety of financial strategies that may help make a move easier. Depending on your situation, these could include:
- Using proceeds from the sale of your home
- Working with a financial advisor to structure retirement assets
- Opting for short-term bridge financing while a home is being sold
- Coordinating distributions from retirement accounts
- Evaluating tax considerations with trusted, professional advisors
Not every option is appropriate for every person, but knowing they exist often gives prospective residents greater confidence as they plan their next chapter.
Waiting for the ‘Perfect Time’ Isn’t Always the Best Strategy
It’s natural to want every detail to line up before making a major life decision. But many residents tell us they wish they had started researching sooner.
Waiting until health concerns, home maintenance, or an unexpected life event forces a decision can limit your choices and add unnecessary stress. Planning allows you to make thoughtful decisions on your own timeline while enjoying the lifestyle, friendships, and amenities that are important to you.
One of the best ways to explore your options is to schedule a visit with communities in the area that pique your interest.
“You don’t have to arrive with every financial answer,” Thelemaque says. “You don’t need to know exactly which residence you want. And you certainly don’t need to have every piece of your retirement plan finalized. You simply need a willingness to ask questions.”
Bring this checklist with you as you explore Abbey Delray South or any other senior living community.
- Which contract options would best fit my goals?
- How do Type A and Type B contracts differ?
- What entrance fee options are available?
- What refund options are offered?
- What are the monthly service fees and what do they include?
- How does future healthcare coverage work?
- What planning resources are available if my home hasn’t sold yet?
- Can you help me understand what other residents considered during their decision-making process?
Ready to start the conversation? Contact us here.