Many clients are now considering and moving to Continued Care Retirement Communities (CCRCs) in their 60s to 80s. It is important to explore different options, as each community offers unique financial arrangements, levels of care, and potential waiting lists. CCRCs provide a comprehensive and adaptable approach to aging, ensuring individuals receive appropriate support as their health and lifestyle needs change. These communities offer a range of services, from assistance with daily activities and medical management to specialized memory care and hospice services. Residents benefit from access to on-site healthcare professionals, personalized cognitive support, and compassionate care that upholds dignity in every stage of life.
In addition to meeting medical and personal needs, CCRCs offer a lifestyle that’s both fun and fulfilling. The communities typically provide a variety of activities and amenities to promote an active lifestyle, including social events, fitness classes, dining experiences, entertainment, and educational courses. This combination of care and lifestyle allows individuals to live with greater confidence, knowing their health, happiness, and comfort are thoughtfully managed. It also brings a great deal of simplicity to managing your life.
For families, CCRCs offer significant peace of mind by alleviating the burden of caregiving. As care needs increase, loved ones can focus on spending quality time together rather than managing daily tasks or navigating complex medical decisions. It’s a solution that brings relief, knowing that a family member’s well-being is in expert hands and where care is available on the premises. This removes the stress of finding care at the last minute, allowing for better planning and more choices.
Financial Considerations
While continued care retirement communities provide a seamless transition as needs evolve, there are important financial factors to consider. Unlike homeownership, where equity builds over time, most communities require a sizable entry fee that does not appreciate in value. The entry fee is often comparable to home equity, though costs vary by community. There are usually options to have a portion (50%, 80%, 90%) refunded to your heirs at death; although, some may offer no refund. Additionally, most facilities will hold a promissory note for a period of time to allow you time to sell your home.
The ongoing monthly costs—often higher than a traditional mortgage—tend to increase annually but include many expenses that you currently pay separately. Comparing your current budget to the CCRC budget will give you an idea of any cost differential. The monthly fee is typically impacted by the refund option you select.
However, for many individuals, the simplicity and peace of mind dictate making the decision. From my experience working with clients, carefully considering both the decision itself and its timing is crucial. It’s a significant decision, as many people who move into CCRCs are still living independently at the time. The predictability of care, access to high-quality medical services, and an engaging lifestyle offer reassurance and stability, making them invaluable benefits. By planning ahead and working with a trusted financial advisor, investors can determine whether this type of long-term care aligns with their financial goals and legacy planning.
Ultimately, continued care communities offer a unique blend of independence, support, and security—allowing individuals to enjoy a high quality of life while ensuring their future needs are met. With thoughtful financial preparation, they can be an excellent choice for those looking to balance comfort, care, and long-term financial well-being.
Pros and Cons of Continued Care Retirement Communities
Pros
- Ease of burden to your family as increased care is needed.
- Offer excellent opportunities for developing a social network.
- Lifestyle Simplicity – Maintenance, Food Plans, Amenities, Classes, and Entertainment are available.
Cons
- Typically requires a large entry fee.
- Unlike home equity, your deposit does not grow over time.
- The monthly fee can be higher than your home mortgage payment and the fees increase every year.
