Retirement living alone vs. having a later-life roommate
Being home alone is a retirement reality for many. According to government data, more than three in 10 women and two in 10 men at least age 65 live alone. For women, the odds of being solo increase with age, thanks in part to longer life expectancy than men. In 2018, 44% of women at least age 75 lived alone.
Anyone living alone — and who worries about having the retirement income they need to enjoy themselves — should at least consider having a roommate. Sure, it’s way outside the box, but before you dismiss the idea, consider how it might enhance your retirement.
Home alone is expensive
Even if you’ve polished off the mortgage, there’s still property tax to pay.
In pricey markets such as Short Hills, New Jersey, where the average home sale price is near $2.5 million, or Boston, where the average home sale price is near $1 million, that’s likely going to eat a chunk of retirement income.
Or maybe you’ve got your eye on a retirement relocation, but your top choices seem out of reach. The $600,000 average sales price for a San Diego condo or townhome might be more in reach if there’s someone to share costs with. Perhaps the dream of retiring in Key Largo, Florida — median monthly rent of nearly $1,400 — becomes more realistic when there’s another person to share bills with.
Been wishing you could move into a bustling city, where you can ditch the car and walk more? Maybe that becomes more realistic when the cost is shared.
Then there’s the potential payoff from having some company. Maybe that’s not front of mind now, but as you age, you may find your energy to go out to see friends and attend events slows a bit. Studies have shown that social isolation is a health risk and it may also lead to an increased likelihood of developing dementia.
Start the co-housing conversation
OK, the big hurdle is finding the right roommate. And that’s not easy, because this is a topic that isn’t exactly part of everyday conversations. But what do you have to lose by raising the issue? Do you have friends or family who are also living alone, and that you could envision sharing a place with? Start with them.
And consider floating the idea among any communities you are involved with, be it a place of worship or your local Nextdoor group. Maybe frame it as an exploration. “I am interested in the possibility of sharing my home (a home) in retirement. It’s a big decision, but if you share the interest, might we start a conversation?”
Companies including Seniorhomeshares.com and Silvernest are in the business of connecting seniors looking for shared housing. The Oddcoupleshousing.com website works to connect older homeowners with younger adults looking to rent a room and, if agreed upon, handle some of the chores.
Hash out the logistics
You want to work out as many kinks as possible before anyone makes a move. There’s no need to combine financial accounts. If only one of you is paying the other, put in writing the date that a direct deposit will be made to your checking account each month. Or if you’re splitting housing costs, maybe consider setting up a joint checking account to autopay all the bills, with the understanding that you both will make your monthly deposits into that account by an agreed upon date each month.
Also put in writing exactly what costs will be shared. Are you going to shop and cook together or separately?
The biggest hurdle will be talking through how you might handle one of you becoming ill. Don’t assume the other person will be the caregiver. You need to carefully discuss how that situation will be handled.