CCRC “Nitty-Gritty” Need to Knows

 

In a post last year, I wrote about a class that I taught for the first time about continuing care retirement communities or CCRCs. I recently taught the class again. Below are some additional things to consider about CCRCs:

CCRC Definition- A CCRC, also known as a life care or life plan community, is a senior living community that provides independent living, assisted living, memory care, and skilled nursing care on one campus as residents’ needs change. There are approximately 2,000 CCRCs in the U.S.

 

Elitist Concerns- CCRCs are expensive! Entrance fees are often $400,000 or more, especially when a “second person fee” is charged for a couple. Industry experts estimate that only about 10% to 20% of older adults have the financial resources to comfortably afford a traditional CCRC.

 

Early Planning- Experts advise moving to a CCRC before you need to. Once you have illnesses, limited mobilities, and special medical needs, it will be difficult to move and you possibly may not be accepted. In addition, many CCRCs have waiting lists that are five to ten years long to get in.

 

Widowhood Scenario- Spouses in a couple should consider what they will need as singles when the first spouse passes away. CCRCs can provide peace of mind as a source of future long-term care instead of relying on children, which adds a burden to their lives (time and money).

 

Downsizing Challenges- Selling a home and moving to a (generally) smaller CCRC unit can be emotionally, mentally, and physically taxing. It generally takes longer than people think, even when everything goes smoothly. People need to allow adequate time for selling and packing their “stuff.”

 

Pre-Move Measurements- There are online programs (and some CCRCs even have downsizing consultants) to help with laying out rooms and positioning possessions. Don’t pay to move things that won’t fit. Also, remember that CCRC residents typically live there for the remainder of their life.

 

Nitty Gritty Questions- Visit with staff and residents of a CCRC and ask questions about things that are not typically found in the slick brochures that CCRCs provide:

 

§   Is the CCRC profit or non-profit? Is there a “parent” company?

§  What is the CCRC’s bond rating? Ask to see their latest financial statements.

§  What facilities, activities, and amenities are provided?

§  Can you move between housing types (e.g., a cottage to an apartment after a spouse passes)?

§  How much of the entrance fee is pre-paid long-term care expenses for a tax deduction?

§  Is there a residents’ council? If so, how active is it?

§  Is there a resident’s handbook (ask to see it before buy-in)

§  If you move to a higher level of care, how is the transfer made, including moving possessions?

§  What is the average job tenure of CCRC employees?

§  What are the CCRC’s policies on parking and pets?

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.