• What Are The Qualifications For A Senior Living Community?

    What Are The Qualifications For A Senior Living Community?

The qualifications for many communities are based on based on several factors related to their financial picture. Here are the most common:

Qualifications that are Considered

Age

The future is unknown. Therefore lifetime projection models rely heavily on historical statistics, sometimes national or regional. Forecasting for the ability to pay fees depends greatly on the time frame that’s being considered.

This is calculated based on the age of entry to the community. In addition to the estimated length of time an individual will live in the community.

Income

All income streams are typically considered. It’s important to report them because they provide a baseline for paying monthly fees.

  • Stable and ongoing income source – social security or a pension
  • Variable sources of income – dividends and capital gains

Share income sources that you draw on annually because they will be taken into account on a forecast. Be certain to include their planned end dates.

  • IRA (Individual Retirement Account) or 401(k)
  • Rental income or a structured settlement

Essentially, any type of income that gets reported to the IRS is included in any projection.

Assets

Typically, only liquid assets are considered for community qualifications. Assets most often include property, savings, and investments.

Assets are important to cover the monthly fees needed as residents move to higher levels of care. Especially if the community is a CCRC.

Most often, proceeds from the sale of the house/condo pay the entrance fee.

Accommodations

Entrance and monthly fees are defined by the size and location of the accommodation as well as the number of people that live there.  Fees may vary widely within a community. So someone may qualify for several or all of the accommodations. The full scope of your financial landscape will determine the accommodation options.

Know Your Numbers

Take inventory of your current financial situation.

  • Familiarize yourself with your current income streams and assets. Consult your most recent investment statement and tax return. These are key elements to consider along the community’s entrance and monthly fees.
  • Research your house value. Most counties have a public website listing the house value for tax purposes. Unless you have a committed buyer and signed a purchase agreement, most communities will only use the tax value of your property because it is an objective estimate.
  • Create a lifestyle budget. Most communities include a package of services provided through the monthly service fees. These can vary and are based on the contract type associated with that community. Certainly, ask for a list if one is available.
  • Post-Career Living. Outside of what services are provided, consider what lifestyle you want. For instance, do you plan to travel every year? Eat out every night? Or purchase the car you’ve always wanted? So listing these expenses out will help you create your lifestyle budget.

Twin Towers is a continuing care retirement community in Cincinnati, Ohio, offering patio homes, apartments, rehab services and more. We’re focused on supporting the vibrant and active lifestyles of our residents so they can age well. For more information, contact Twin Towers online or at 513-853-2000.

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