Could a CCRC – a continuing care retirement community – be the best of both worlds when it comes to senior living? The answer is, maybe – but there are drawbacks, including high costs, to consider.
Aging in place may be the stated desire of the vast majority of retirees, yet while growing old at home is often a good idea, it might not be the best choice for everyone. Healthy seniors who plan carefully have several housing options available to them, one of which – the CCRC – can offer a good compromise between living independently and enjoying the benefits of living in a group setting.
Moreover, there’s another big attraction: moving into one of these facilities can be the last move you’ll ever need to make. That’s because CCRCs promise various levels of care that increase as your needs change.
For a closer look at the pros and cons of CCRC living, we turn to an updated report from U.S. News by reporter Elaine Howley, which discusses whether to consider a CCRC and at what age. As it turns out, if you’re considering a community, moving sooner is often the best choice.
A CCRC is Among Many Senior Living Options
Most readers are familiar with the various residential options available to seniors, mainly independent living, assisted living, and nursing homes. But less well known is the CCRC, sometimes called a life plan community.
UCLA geriatrician Dr. Susan D. Leonard explains CCRCs this way: “Typically, they include a combination of independent living, assisted living and nursing home care levels. This allows seniors to age in one location and transition to a higher care level as their care needs change – such as due to functional or cognitive decline – without having to move away.”
Bob Rees, chief sales officer with eHealth Inc., adds that these communities “are designed to provide comprehensive support for seniors and others through different retirement and care stages.” This proximity to care allows residents to develop friendships and communities that remain intact, no matter how their health needs change.
Living in a CCRC – Another Form of Aging in Place?
CCRCs operate under the concept of “lifecare,” designed to care for seniors from retirement through the end of life. Residents are usually making a decision to spend the rest of their lives as part of the community. This adds an extra layer to the decision: where would you like to spend the rest of your life?
These communities typically offer four primary levels of care. Independent living is the first level most residents enter, where they live in their own apartment or condo with access to all community amenities. The second level is assisted living, which offers more support for activities of daily living, such as cooking, bathing, or medication management.
Some seniors may eventually require skilled nursing care, a third level providing intensive day-to-day support and round-the-clock nursing. Additionally, memory care is an added level provided by most CCRCs to support residents experiencing cognitive decline or dementia.
CCRC Cost is an Impediment for Many Seniors
CCRCs are a significant financial investment. They usually require an up-front investment known as a buy-in, which typically ranges from the low six figures to more than $1 million at swankier properties.
While initially expensive, this can be a wise financial decision because once the upfront fee is paid, monthly rates are often locked in at a predetermined level, regardless of the type of care required. This is significant given that a private room in a skilled nursing facility now costs an average of $127,752 annually, a figure that is only expected to rise.
What’s the Ideal Age to Move to a CCRC?
While the average age at move-in for independent living is 82, and mid-80s for assisted living, experts suggest moving in sooner. Moving while you are younger—say between ages 55 and 65—while you are still fully independent provides specific benefits.
Jennifer Avila, executive director of Custom Home Care, notes that CCRCs require health assessments and can deny applicants who don’t meet health requirements. Waiting until your health worsens could mean being denied entry if you no longer meet the property’s requirements or if long waiting lists delay your move until your condition has changed.
Social and Wellness Advantages
CCRCs are often big, highly social settings that help limit the isolation that comes with aging. This is especially helpful for seniors who have recently lost a spouse, as it provides a strong social network to navigate grief.
Furthermore, research shows that moving into such a facility can actually prolong your life. Dr. Steven Tam, a geriatrician with UCI Health, notes that communities offer health and wellness programs like nutritional counseling and fitness classes. Taking advantage of these early can benefit your overall long-term well-being.
CCRC Finances and Fine Print: Get the Right Advice
CCRC contract options vary, and it is critical to understand which type you are signing.
Type A, or life care contracts, are comprehensive and offer the least financial volatility by covering housing and health care without large increases in monthly payments.
Type B, or modified life care contracts, cover only specified levels of care, meaning residents may pay extra when additional services are rendered.
Type C fee-for-service contracts usually have lower buy-in fees, but monthly costs increase as a senior moves to higher care levels.
Some communities offer Type D rental contracts with no large upfront buy-in, though monthly rates are higher and certain services may not be guaranteed. Finally, Type E equity agreements allow residents to purchase their residence while paying a monthly service fee.
Dr. Barbara Bawer of the Ohio State University Wexner Medical Center warns that these contracts are complex. You may want a financial advisor or lawyer to review them, especially since you could suffer financial loss if the CCRC goes bankrupt. Also, note that Medicare does not cover CCRCs, though it may cover some skilled nursing care under specific circumstances.
Buyer Beware: Ownership Changes Might Alter Your Contract
Traditionally, CCRCs were run as non-profits, but many are now run by for-profit corporations. A for-profit CCRC is more likely to be sold, which could result in resident contracts being negated or renegotiated.
Always ask if the entrance fee is refundable if you decide to move out. Some communities provide a full refund for a few months after move-in, while others have much stricter limits.
Planning Your Move
Before choosing a CCRC, research and visit multiple locations to find a comfortable fit. Some may allow a trial weekend or week-long stay. Jennifer Avila recommends sitting in on a resident town hall meeting to see how management and residents interact. This allows you to find out what the residents really think about the food, the amenities, and how business is conducted.
Some Important Questions to Ask When You Visit
To help you prepare for a site visit, here are several key questions and considerations based on expert recommendations for evaluating a continuing care retirement community (CCRC).
Assessing the Social and Living Environment: When visiting a campus, it is essential to determine if you can envision yourself living there for the rest of your life. Take time to observe the current residents to see if they seem like the type of people you would enjoy living around or forming friendships with. Look into the variety of activities available on campus, such as fitness classes, hobby sessions, or organized outings, and evaluate if they appeal to your personal interests.
It is also helpful to ask about the specific types of housing available, whether they are apartments, townhouses, or stand-alone houses.
Evaluating Care and Staff Interactions: Understanding how care is managed is a top priority. Ask the staff about the available health care services and the specific protocols for how a resident transitions through the various levels of care as their needs change. You should also inquire about emergency procedures and whether the staff can accommodate personal preferences or particular requests.
Jennifer Avila suggests attending a resident meeting or town hall to observe how management and residents interact, which can offer a candid look at resident satisfaction regarding food and amenities.
Reviewing Financials and Operations: Because CCRCs require a significant financial commitment, you should ask for inspection reports and check if there have been any outstanding complaints against the property or staff. Clarify exactly what is included in the monthly fee and what services will cost extra.
Crucially, ask if the entrance fee is refundable if you decide to move out, and find out what happens to your unit after you pass away. Finally, determine if the facility is run as a non-profit or a for-profit entity, as this can impact the stability of your contract if the business is sold in the future.
Rajiv Nagaich – Your Retirement Planning Coach and Guide
Rajiv Nagaich’s newest program on PBS, called Designing Your Ideal Future, is bringing Rajiv’s powerful message to Americans from coast to coast. This engaging and challenging PBS show is prompting thousands to take a fresh look at the type of planning that will help them succeed in retirement.
In this one-hour PBS special, Rajiv Nagaich takes viewers step-by-step through the principles of creating a retirement plan that truly supports the life you want to live. Instead of generic check-the-box paperwork, Rajiv reveals how to infuse your perspective — your values, goals, and priorities — into every legal document and life plan component so your plan becomes a living system for your future.
Designing Your Ideal Future includes insights from real-world planning examples and a live Q&A with Rajiv Nagaich that answers viewer questions about retirement planning, legal readiness, and family communication. It’s perfect for anyone approaching retirement, currently retired, or responsible for a loved one’s future care — and for those who want a clear, effective approach to planning that prioritizes personal choice and quality of life.
What about you?
You’ve heard Rajiv say it repeatedly: 70 percent of retirement plans will fail. If you know someone whose retirement turned into a nightmare when they were forced into a nursing home, went broke paying for care, or became a burden to their families – and you want to make sure it doesn’t happen to you – then these materials are your key to retirement success.
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And remember, Age On, everyone!
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