Investing in a Continuing Care Retirement Community: What to Know

Investing in a Continuing Care Retirement Community (CCRC) sometimes called a Life Plan Community, is a plan for your future. It’s like purchasing a home for your retirement but choosing one that comes with added value for aging.

Why a CCRC?

The main reason people move into a CCRC is to gain access to the continuum of care. Levels of care include:

• Independent living
• Assisted living
• Skilled nursing
• Additional health care services the community offers

Choosing a community that provides care that may someday be needed provides a sense of security.

When to Move In?

Most seniors move while they are independent and active because they see it as an investment. One that allows them to take advantage of the amenities and services available for as long as possible. They also want to free themselves of the upkeep and maintenance of a home. This gives them more time to do the things they want to do.

CCRC Costs and Contracts

More variations in CCRC contracts have developed in recent years, just as more CCRCs have popped up across the country. Common among most of these contract types are Entrance Fees and monthly fees.

• An entrance fee is a deposit that is often compared to a membership fee. It offers you access to the continuum of care in the community.
• A monthly fee covers the community services, amenities, and conveniences gained from the moment you move in.

As you tour CCRCs, get a complete list of all services and amenities included in the monthly fee. Also, ask for any costs not included in the monthly fees. Fees may include:

• Entrance fee
• Administrative fee
• Health assessment fee
• Any community fee required upon signing or reserving a home

How Do Most People Pay for a CCRC?

Many residents fund the move through the sale of their home, retirement accounts and investments.

Most CCRCs require a resident to be in good health when moving into the community. Some may even require that residents be able to live independently when first moving in. There may also be minimum and maximum ages for new residents.

Of course, applicants are required to show they have the means to meet the fees and monthly costs. You may even be placed on a waiting list if the community is in demand.

Are CCRCs Worth It?

CCRCs vary in price and contracts, making it difficult to compare apples to apples when it comes to costs.

What you can focus on is determining:

• Does this fit into my budget?
• Does it offer services and amenities I will use?
• Is it a sound investment in my future?

The best way to determine costs is to compare your current cost of living to each CCRC. Use our free Cost of Living Comparison Worksheet to estimate the long term costs of maintaining your home and lifestyle versus the inclusive benefits of living in a community.

Begin touring early so you can prepare and even reserve the home you want. While touring CCRCs, plan ample time to walk the homes and grounds. Try to talk with residents and get your questions answered by staff. Take along this retirement community checklist. It will help uncover if a CCRC is the best financial and lifestyle choice for you in retirement.

Thinking about moving to a senior living community? Learn what your options are with our FREE eBook, What are My Senior Living Options.