Unique retirement plans

[Frozen Canuck]

I have been reading about Mama Lee for years now. She is the woman who cruised many times with her husband and then after he passed away, she decided to retire to a cruise ship. Her meals are all provided for, she dances daily for exercise, and she gets to see the world. She has been in the same cabin and eaten at the same seat in the dining room for nearly 10 years now.

How to Retire On A Luxury Cruise Ship

Today, I came across a news story about a gentleman who has decided that he will retire to a Holiday Inn. He has done the math and figured that a room at the Holiday Inn will save him about $120/day as compared to the cost of a retirement home. He would get breakfast, Happy Hour, an exercise room and pool, and housekeeping services. The money he saves, he will put towards meals and entertainment.

Man Plans to Spend Retirement at Holiday Inn

I admit to not giving my retirement plans much thought right now, other than wanting to move back home, but how about you? Any special plans for your retirement?

 

[mnrose]

Both of those "plans" work so long as you are healthy. Neither is a good substitute for assisted living, and certainly not a nursing home. If the man in the Holiday Inn example actually NEEDED a nursing home (because why else would he be comparing the cost to a nursing home), the staff at the hotel isn't going to do for him the things a nursing home would do....dispense meds, manage incontinence, etc. If he's healthy, the better comparison would be the cost of an apartment in an "active senior" community. In my area, he'd definitely do better at one of those than a hotel! It runs about $800 a month for a 1 BR in an active senior community (no care provided, but housing only 55+ adults able to live on their own) which covers rent and basic utilities.

 

[Scifidiner]

That's a great idea, I think we'll retire to the Grand Floridian...wait...

 

[disykat]

I agree with mnrose. Those articles are ridiculous comparing independent living to assisted living or nursing care. Comparing apples to oranges doesn't make sense. Until hotels or cruise lines get managed care services you really can't compare them. If you are still living independently you can live anywhere you want so I don't really get the whole "affordability" thing. It'd be much cheaper to live in an apartment or paid off home and just get a housekeeping service.

When my parents moved into a senior residential independent living apartment the price for the two of them could have been compared pricewise to one room at the Holiday Inn, but they had a full apartment with a kitchen, all the food they could eat all day long at the dining room, a van service to drs. appts. etc., and exercise classes and social opportunities along with the amenities a hotel would provide. Now that they live in assisted living, it costs more than the hotel would, but they rely on many more services that a hotel could provide. Prior to that they lived in their paid off home which was WAAAY cheaper than a Holiday Inn.

Despite some marketing that may make it look like senior living options are a "vacation," people move in there because of a need. Comparing the two seems like an injustice to all the wonderful people I've met working in mom and dad's facility. It's really a much more intimate relationship than people in the tourism industry have with their guests. (Not trying to insult people working in the tourism industry - it's just very different!)

 

[morgan98]

I thought, and I admit I really am not that into it to do research at the moment, that many hotels impose a maximum number of nights you can stay in a row because after a certain number of times you become a resident. That may bring up a whole host of legal issues.

I am sure there are ways to work around these exceptions, but not completely sure it is as simple as it seems.

 

[Happyinwonerland]

These people would be better off staying in their own homes and saving their money for when they really need a retirement home. There is a big difference in private pay vs state paid nursing homes, and if the 2nd man wastes all his money on Holiday Inns during the first 10 years of old age, he is going to be kicking himself when the time for actual retirement living comes. The lady on the cruise ship is also in for a big surprise if/when she faces even a minor medical crisis.

 

[Darcy03231]

Both of those "plans" work so long as you are healthy. Neither is a good substitute for assisted living, and certainly not a nursing home. If the man in the Holiday Inn example actually NEEDED a nursing home (because why else would he be comparing the cost to a nursing home), the staff at the hotel isn't going to do for him the things a nursing home would do....dispense meds, manage incontinence, etc. If he's healthy, the better comparison would be the cost of an apartment in an "active senior" community. In my area, he'd definitely do better at one of those than a hotel! It runs about $800 a month for a 1 BR in an active senior community (no care provided, but housing only 55+ adults able to live on their own) which covers rent and basic utilities.

A lot is going to depend on where you live. In my area you'd be lucky to rent a 1 bedroom apt. with no utilities for $1200-$1400/month. Utilities would add about another $200-$300/mo.

 

[mjkacmom]

These people would be better off staying in their own homes and saving their money for when they really need a retirement home. There is a big difference in private pay vs state paid nursing homes, and if the 2nd man wastes all his money on Holiday Inns during the first 10 years of old age, he is going to be kicking himself when the time for actual retirement living comes. The lady on the cruise ship is also in for a big surprise if/when she faces even a minor medical crisis.

Yes, and you need to get into the private facilities with a certain amount of money in your name (for my dad the minimum was $300,000/3 years private pay). Otherwise you won’t be considered for a Medicaid bed.

 

[mjkacmom]

I thought, and I admit I really am not that into it to do research at the moment, that many hotels impose a maximum number of nights you can stay in a row because after a certain number of times you become a resident. That may bring up a whole host of legal issues.

I am sure there are ways to work around these exceptions, but not completely sure it is as simple as it seems.

On every cruise I’ve been on, there seems to be someone who has been on the ship for months, I don’t think they care.

 

[gotomu212]

These people would be better off staying in their own homes and saving their money for when they really need a retirement home. There is a big difference in private pay vs state paid nursing homes, and if the 2nd man wastes all his money on Holiday Inns during the first 10 years of old age, he is going to be kicking himself when the time for actual retirement living comes. The lady on the cruise ship is also in for a big surprise if/when she faces even a minor medical crisis.

Well the lady on the cruise ship is a multimillionaire so I think she’s okay with her financial situation. I’m sure if she begins to physically deteriorate she’ll leave and have alternative arrangements and a very cushy insurance situation.

Her story isn’t so much a look at the cost comparison as a life of the fabulously wealthy.

 

[Simba's Mom]

Well, for a one-time, not long term retiirement plan, DH planned to run the Dopey Challenge at WDW. He'd heard about it several years before retirement, but believed his work didn't leave him time to train properly. So when he retired he promptly began training for the Dopey, which he ran about a year later.

 

[tvguy]

That's a great idea, I think we'll retire to the Grand Floridian...wait...

While we enjoyed our week in the Grand Floridian, I was surprised how small the rooms were compared to the Grand Californian. Especially the toilet/tub half of the bathroom. The door barely cleared the toilet.

 

[disykat]

I had a good laugh when I clicked on the article about the Holiday Inn guy. He said "an extra $5 a day of tips will have the entire staff scrambling to help you." HAHAHAHAHAHA Good luck with that if you're exhibiting bad behavior from dementia, having trouble with incontinence, or need help getting in/out of the tub. (and none of those things necessarily mean you've even reached the point of needing full care nursing home level yet)

That man has absolutely no idea what a nursing home is. No one capable of living in a hotel would choose to live in a nursing home. The only thing that makes this man unique is that he's too stupid to know the difference.

I plan to live in my paid for home as long as I can. No need to pay rent. Then if I need to I'll move to a leveled care facility only paying for more care as I need it. Full care nursing is a last resort for everyone, not something anyone wants to do.

If I had total control of my plans, I'd live well, do lots of traveling, enjoy my friends and family, and then die peacefully in my sleep before reaching the point of needing full nursing care. My parents are in assisted living (which IMO is a GREAT option and I'm so glad they have it available) and I'm honestly praying for them that they won't have to go into full nursing care.

 

[mnrose]

A lot is going to depend on where you live. In my area you'd be lucky to rent a 1 bedroom apt. with no utilities for $1200-$1400/month. Utilities would add about another $200-$300/mo.

Yes, but I'm also guessing in your area, you'd have a very hard time getting a hotel room for $60 a night too. That's the point. If he can get a hotel room for $60 a night (1800 a month, not counting tax), I'll bet in that same area, he could get an apartment for a whole lot less. Heck in my area, you'd have a VERY hard time finding a room in a hotel you'd actually want to stay in for less than $75 a night. LOL. More like $100 a night for something that is going to toss in breakfast and a happy hour (as the article mentions).

Sure, "permanent" hotel living might be attractive for other reasons, but the "budget" option it is not. Same with the boat lady, who was (in 2015) spending over $150K a year for her travels. Works great if you are extremely wealthy, but very few seniors fall into that category.

 

[tvguy]

I had a good laugh when I clicked on the article about the Holiday Inn guy. He said "an extra $5 a day of tips will have the entire staff scrambling to help you." HAHAHAHAHAHA Good luck with that if you're exhibiting bad behavior from dementia, having trouble with incontinence, or need help getting in/out of the tub. (and none of those things necessarily mean you've even reached the point of needing full care nursing home level yet)

Sadly, in too many nursing homes getting assistance you need may be harder than at a Holiday Inn. Or even a Motel 6. I had to sort through all that with my mom in 2012. I saw some pretty sad nursing homes that met all the legal standards, but were NOT a place I would put my mom. Fortunately my mom bought long term care insurance that paid enough for me to put her in a Residential Care Facility for the Elderly. 6 residents, 24 hour care, home cooked meals in a home like environment. And her Medicare Advantage paid for the physical therapist, speech therapist and Nurse to come check here twice a week.

 

[DisneyOma]

Do they even let you stay at a hotel that long? I thought they kicked you out after a certain amount of time, so that the hotel doesn't become a lodging house and then can't evict you for nonpayment.

 

[OhMari]

I think the whole industry is going to be making changes. The biggest and scariest scenario, is the younger generation does not want to work in the nursing homes. I think the major news was saying this week, how nursing homes are closing because of lack of help.

 

[ronandannette]

Well the lady on the cruise ship is a multimillionaire so I think she’s okay with her financial situation. I’m sure if she begins to physically deteriorate she’ll leave and have alternative arrangements and a very cushy insurance situation.

Her story isn’t so much a look at the cost comparison as a life of the fabulously wealthy.

If that's the case it does answer one of my questions. I was wondering how the cost of medical insurance would factor into her budget. I'm not sure how your Medicare for seniors works, but I doubt it includes travel medical coverage. That's what she would need being off-shore all the time and the price of a typical travel policy is breath-taking for those advanced in age.

 

[mnrose]

If that's the case it does answer one of my questions. I was wondering how the cost of medical insurance would factor into her budget. I'm not sure how your Medicare for seniors works, but I doubt it includes travel medical coverage. That's what she would need being off-shore all the time and the price of a typical travel policy is breath-taking for those advanced in age.

It depends on where she is when she has a medical emergency. Many other countries provide excellent medical care at a fraction of what it costs in the US. For example, I know someone who needed multiple IVs (just fluids....nothing exotic) in Panama and it costs $1.72 per liter bag...FULL cost, including administration. My DD had IV fluids 16 years ago in an ER, and the FIRST bag cost over $1000 in an ER in California. The only place the cruise lady would "need" insurance (assuming she's reasonably wealthy, as she surely must be) would be the US, where presumably she's covered by Medicare as a senior citizen. In most other countries, she could self-pay for medical expenses without too much difficulty. Plus, as she is well into her 90's, it could also be that her "plan" is simply to let nature take it's course should she develop significant medical issues as opposed to engaging in a lot of aggressive medical care. I know several elderly people (my MIL, currently 84, and my aunt, currently 92) who will not use any medical care save for antibiotics should they develop an easily treated infection or similar and palliative care. They both are quite adamant that if they develop cancer, they will not do chemotherapy. Nor will they get further "screening" exams....what's the point they both say as they have no plans to "treat" any serious illness anyway. It's a decision I see myself making at some point myself.

High medical costs are also the main reason my husband and I are considering living our retirement years in a foreign country. Our medical care is just absurdly priced. I don't think that's a "unique" retirement plan by any stretch. There are many tens of thousands of retirees doing exactly that.

 

[indimom]

Sadly, in too many nursing homes getting assistance you need may be harder than at a Holiday Inn. Or even a Motel 6. I had to sort through all that with my mom in 2012. I saw some pretty sad nursing homes that met all the legal standards, but were NOT a place I would put my mom. Fortunately my mom bought long term care insurance that paid enough for me to put her in a Residential Care Facility for the Elderly. 6 residents, 24 hour care, home cooked meals in a home like environment. And her Medicare Advantage paid for the physical therapist, speech therapist and Nurse to come check here twice a week.

Name ONE hotel or hotel employee who is providing incontinence care or offers bathing, wound care, medication administration, lab draws, etc to their guests... Nursing facilities may not be our ideal, but they do provide these services. A hotel does not.
I'm with other posters on here. These are apples and oranges comparisons. No one who is able-bodied enough to live unassisted in a hotel is going to be living in a nursing home. Someone who requires the level of care that a nursing home provides is not living in a hotel room unassisted.