Is A CCRC The Answer To Your Retirement Living Needs?

The kind of housing you choose during retirement will have a huge impact on how much money you’ll need to retire.  Most people prefer to stay in their own home.  That’s understandable, but there are other options.  This is important on a couple of different levels.   Most important, you may be able to retire earlier or enjoy more freedom if you downsize or become renters.  Maintaining a home becomes more difficult and expensive as we age Pilgrim.  And as we get older, we have no choice but to think about medical care and living assistance.   That’s where the CCRC (Continuing Care Retirement Community) comes in.

What Is A Continuing Care Retirement Community?

Today, more and more seniors are considering a “continuing care retirement community” (CCRC). These are living arrangements where everything you need is provided. You have independent living if you are physically able to handle it, but nursing home care is available right there just in case.  Personally, I hate thinking about this kind of stuff but I know I have to. Oh Schnap.

This could be a smart option for people who are in great health now but are concerned about the future. The CCRC offers every permutation. If you are able to live independently, no problem. But if at some point, you need more care, you can get it without moving. Nice.  The costs of CCRCs vary with location.  But when you consider what it really costs you to live in your home now, you may find that the CCRC saves you money – and a lot of worry.

What Does It Cost?

CCRCs are private – that means your costs are going to vary.  Generally speaking, you have to pay an entrance fee and an on-going monthly amount.  If you rent the space the entrance fee could be as low as $20,000 and if you buy it could cost you $500,000 or more. Your monthly fee could be as low as $500 or several thousands each month.  Again, this depends on where you live. Your costs will also depend on the size of your apartment, the services offered and your current health situation.

What To Check Before Signing On

There are several important particulars to get clear on before packing up the station wagon and moving in:

1. Some facilities provide financial help to people who can’t otherwise afford it.
2. Some places allow you to stay on even if you run out of money.
3. Your contract will be either extensive, modified or fee for service.  The extensive contract guarantees you a lifetime housing and care benefit.  While this is the most expensive contract, it would be the one I’d use if I was moving in to such a place.
4. Some CCRCs accept health insurance and that can reduce your costs.
5. Some require you to sign over your Social Security in case you run out of funds.  Others require you to buy long-term care insurance before you move in.

These are all important considerations.  If I was going to move in, I’d ask about these questions – and then I’d ask my attorney to review the contact just to be on the safe side. Don’t get me wrong; I think CCRCs are fantastic solutions for many people.  I just think it’s really important to be fully aware of what you are getting into before moving ahead.

Does the CCRC idea appeal to you?  Why or why not?