As we age, it becomes important to plan for the future and consider our living arrangements.
One option for seniors is a retirement home, but a newer trend known as a Granny Pod offers a different kind of living arrangement that enables family to take care of their parents So, what is the cost comparison between the two options?
What is a Granny Pod?
First, let's define what a Granny Pod is. A Granny Pod, also known as a micro-home or in-law suite, is a small living space attached to or located near a family's home. These pods offer seniors the opportunity to live with their families while still maintaining independence and privacy. They can be customized to include features such as a bedroom, bathroom, kitchenette, and living area, and can come equipped with technology to allow for remote monitoring of a senior's health and safety.
Want to learn more about Granny Pods? Check out our other blog: What is a Granny Pod.
What is the cost of a Granny Pod?
Now, let's compare the cost of a Granny Pod to a retirement home. The cost of a Granny Pod can vary based on factors such as location, size, and features, but on average, they range from $70,000 to $250,000. This may seem like a significant upfront cost, but it is important to consider the long-term financial benefits of a Granny Pod:
Purchasing a Granny Pod is an investment. After purchasing the Granny Pod it is owned by the family and when parents pass away the living space can be used for other family members, or rented out and used to generate passive income.
Granny Pod can provide seniors with the opportunity to age in place, avoiding the need for costly assisted living facilities.
Granny Pods can offer cost savings in terms of living expenses, as seniors may be able to share household expenses with their families.
If you are in the process of getting pricing for Granny Pods be aware that some companies advertise pricing and do not include some of the costs needed to complete the project. Some of the most common hidden costs are permits, transportation, excavating, foundation, utilities, & finishing touches.
When looking at cost you should contact the companies you are considering or visit their website to understand exactly what is included in the cost and understand the product they are offering.
Parts of the project like the permits, foundation, and utility connections can easily exceed $40,000 and need to be budgeted for when putting together your plan.
What is the cost of a retirement home?
On the other hand, the cost of a retirement home can vary widely based on location, size, and the level of care needed. The average cost of a retirement home in the Wisconsin ranges from $1,500 to $12,000 per month, or $18,000 to $144,000 per year. There are different levels of services that are available and they can be broken down in a variety of ways, let's take a look at some of the standard options and the costs by category:
Institutional Independent Senior Living: $1,500 - $4,000 per month
Assisted Living: $4,000-$6,000 per month
Nursing Home: $7,500 - $12,000 per month
In summary, the cost of a Granny Pod is generally lower than the cost of a retirement home when considering the long-term financial outlook. It's also worth noting that at the end of the care period, with a Granny Pod the family is left with an asset that be used to generate income or for additional family housing.
Think a Granny Pod is right for you? Check out our other blog: Why Choose a Granny Pod