There are several benefits and a few issues to consider if you’re thinking about moving to a 55 and over community in New Jersey.
If you’re looking into this type of living arrangement for the first time, let’s start with a high-level overview of this type of living environment.
Here are several factors to consider:
Location. This applies to any place you live but is extra important in a senior community search. You’ll want to be close to friends and family, and ideally, you shouldn’t be cut off from social connections you already have. Climate is a part of the location factor, too. Stick with the climate that makes you most happy. You should also move close to activities you love, whether it is golf or just enjoying time on the beach or in the mountains.
Housing Options. Not all 55 and over communities offer the same types of housing. Some are apartments and condos only. If you want more space, look for a community with single-family detached housing options. Balconies and yard space may also be important to you.
The other factor with housing options is accessibility. Is the community built to comfortably meet the needs of seniors with ramps, elevators, wide doorways, pull bars in bathrooms, and other similar features? You can always modify your home in the future if needed, but it may make the transition easier to find a home that has these types of things already included.
HOA Rules. This is where paying attention to the details can save you future problems. Many senior communities have associations that govern what you can and can’t do. Sometimes, these rules are rigorously enforced and can be quite punitive if you don’t follow them. For example, you might not be able to park your boat or RV in a convenient place. Flying flags may be forbidden or letting people younger than 55 stay with you beyond a specific time might not be allowed.
Security. Most of the time, 55 and over communities have added layers of protection. This could include gate-guarded entrances, roaming security patrols, or similar measures. Be sure to ask about typical police and fire response times as well.
Community Activities. Are there planned activities, outings, clubs, and other ways to socialize with community members? Lots of opportunities to pursue group hobbies, recreation, and cultural experiences is a good sign that you’ll be happy if you want to be active in these ways. High levels of activities have medical benefits too:
Affordability. Determine your budget and stick to it! Don’t fall in love with an option you can’t afford.
Those are the upsides. But there are some downsides of 55 and over communities to also consider.
Less Privacy. Seniors generally have more time on their hands, which can lead to others intruding on your privacy. Frequent social interaction isn’t for everyone. Before moving into the community, consider how much you enjoy spending time with others.
You Might Still Live Near Children. Age-restricted communities exist under a special exception under the Fair Housing Amendments Act. This means households with at least one person over 55 are permitted in 55 and over communities. As odd as it may seem, you could move into an age-restricted community and still live next door to many kids. On the flip side of this, you’ll generally live in a very age homogenous community, instead of an age-diverse community with lots of younger people to interact with.
More Expensive. Planned communities do have a premium attached to them. You’ll pay more than if you decide to live on your own. Expect some sticker shock, including potentially hefty HOA dues. Also, despite being more expensive, senior communities remain very popular, limiting your purchasing options.
Burdensome HOA Rules. Some governing boards are heavy-handed, especially in condominium communities. Be sure to ask about how the community is governed before deciding to become a member. You could live under hundreds of rules covering noise restrictions to what color you can paint your house. If you don’t follow the rules, the HOA might impose a fine, and you’ll wind up with little recourse.
Lack of Care Services. Some 55 and over communities fall short when it comes to proactively providing care services to match the needs of seniors. In most cases, they are not a substitute for a care facility, and they offer no medical assistance vs. an assisted living facility.
Visitor Restrictions. Some communities might limit the number, ages, or duration of visitors. Visitors might also face restrictions on where they can go and when.
Armed with some good overview information, let’s take a closer look at how those things apply to retirement communities in New Jersey.
Overall Quality of Life. According to WalletHub.com, the Garden State ranks high as a great place to live for families. It ranks 7th out of 50 states with the best quality of life metrics, including first in safety and 15th in health and education. There’s a wide variety of active adult communities to choose from along the famous Jersey shore anchored by Ocean County and communities such as Little Egg Harbor, Ashbury Park, Cape May, Toms River, and Wildwood to other areas such as Whiting, Manchester, Lawrenceville, Farmingdale, Middlesex, Barnegat, Freehold, Lakewood, Monroe Township, and Somerset.
Tax-Friendly. Although the Garden State has some of the highest property taxes in the US, it does not tax social security at the state level. Its income taxes are also low for pensions and retirement accounts lower than $75,000. Also, New Jersey lets residents 62 or older exclude up to $20,000 of their private-pension income from their taxes if their annual income is $100,000 or less.
Weather. The weather isn’t quite as notable as in Florida or California, but overall, New Jersey enjoys four distinct seasons. New Jersey typically has three months of cold weather, but it offers nine months of moderate and warm weather.
Public Safety. According to FBI statistics, the State of New Jersey’s property and violent crime is far lower than the national average, making it one of the nation’s 10 safest states. New Jersey has metro areas along its northern border with other states that suffer from high crime rates. But most of New Jersey is rural, with small towns and medium-sized cities that are some of the safest places to live in the US.
Recreation and Cultural Activities. It’s a state rich in history with easy access to Philadelphia or New York City Metro areas, making New Jersey a vibrant place for arts and culture. Baltimore and Washington, D.C. are also short trips away. The Morris and Newark museums have sizable multi-national collections, including oils, sculptures, watercolors, and photography. The Rutgers and Princeton art museums are also must-see attractions. Trenton's State Museum and Planetarium have diverse offerings to suit all fine art, ethnology, natural history, archaeology, and fine art interests. Golf courses with homes adjacent to fairways offer resort style living and Wharton State Park in central New Jersey is popular year round
Healthcare. New Jersey ranks among the top ten states with the best healthcare in the U.S. For example, New Jersey’s Morristown Medical Center ranks as a top adult procedure and specialty hospital nationally, followed closely by Saint Barnabas Medical Center and the Hackensack University Medical Center. The state is also considered one of the healthiest in the nation due to
many lush farms, pinelands, wetlands, winding biking trails, and miles of riverfront and oceanfront locales.
Although the quality of health care in New Jersey is somewhat lower than in most other states, according to the US Health and Human Service’s Agency on Research and Healthcare Quality, this can be offset by choosing to live near a highly ranked medical care facility.
High Property Taxes. New Jersey has a high overall tax burden compared to other states. Its progressive income rates range between 1.4% and 10.75% for returns in 2020 and later. The sales tax is 6.625%. Property taxes average $8,300 for each household. Since they are so high, the real estate market is also costly.
New Jersey also has a mansion tax. If you move to New Jersey and want to purchase your new luxury home, you will need to pay a 1% tax on your estate purchases of $1 million and above.
High Income, Inheritance, and Estate Taxes. Retirees in New Jersey have their fair share of income tax to pay on their first $15,000. That’s still lower than retirees in states like New York have to pay. But overall, the taxation level is still much higher than in states like Texas, Pennsylvania, and Florida, where retirees pay zero income taxes on retirement earnings.
New Jersey is one of the few states with an estate tax. Estate taxes are paid on a dead person’s estate, AND the person receiving the deceased person’s wealth pays inheritance taxes. New Jersey is one of six states with an inheritance tax and one of the two states that have both taxes on the property.
High Costs of Living. By some estimates, New Jersey has the third-highest cost of living in the nation. As one example, according to the Missouri Economic Research and Information Center, the cost of townhomes and single-family homes are over 50% higher than the national average.
DISCLAIMER: Medi-Solutions Insurance Agency, LLC is not affiliated or endorsed with the Social Security Administration or the Federal Medicare Program. Information is for educational purposes only and should not be construed as an offer of insurance, advice, or recommendation. The information provided is not intended as tax, financial, investment, or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation.
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