Senior living: Know the financial trade-offs

When Geetha Purushotham’s spouse passed away in 2021 during the Covid-19 pandemic, she decided to move to Primus Reflection, a retirement community near Bengaluru, in 2022. The 78-year-old woman moved from her city residence to a 1.5-BHK apartment and is content with her decision, noting her daughter is at ease knowing she is safe and has assistance in emergencies.

Many seniors are now seeking companionship and support by moving into senior living facilities as their families become dispersed. No longer considered a last resort, these homes provide security, medical care, and social interaction. Rajit Mehta, CEO of Antara Senior Care, explains that as India’s demographics and family structures evolve, so does the approach to aging. Seniors are taking proactive steps to determine where and how they want to spend their later years.

The Lamba family is an example of this shift. After retirement in 2024, Reena Lamba, 62, and her husband moved to the Ashiana Nirmay community in Bhiwadi, giving up their busy Delhi home where their daughter lived abroad. They now engage in daily activities and enjoy a carefree lifestyle.

However, this lifestyle transition comes with financial considerations. Moving to such a community requires a significant initial investment, selling one’s existing home, and paying ongoing maintenance fees. Additionally, healthcare needs may rise as one ages. For those considering a move to a senior living facility, it is essential to weigh the pros and cons carefully.

While the organized senior living market is growing rapidly across India, it remains concentrated in southern states, accounting for about 62% of capacity. The largest hubs are Bengaluru, Coimbatore, and Chennai, with leading players such as Vedaanta Senior Living, Primus Senior Living, Columbia Pacific Communities, and Manasum.

Vedaanta operates 12 active communities and aims to expand to 24 by 2029, with around 2,500 families in capacity. Primus, on the other hand, has four active communities and several under construction in major cities, with potential to accommodate 6,200 seniors at full occupancy.

As of June 2026, the market had 25,050 units in India, up from 22,157 units in June 2025, according to the report 'India’s silver economy: From niche to necessity' by ASLI and JLL. The market has grown at a compound annual growth rate of 14.2% since 2024, nearly double the previous five-year growth. This surge in senior living options is trying to match the changing demographics, with India’s 60+ population expected to increase from 166.9 million in 2024 to 346 million by 2050.

However, current supply only meets 1.5% of demand, with only a small percentage of seniors opting for assisted living services despite comprising 25% of the demographic need.