For many older adults and their families, preparing for the golden years goes beyond making crucial financial decisions. It also means choosing the right place to live. A continuing care retirement community (CCRC) offers a unique and flexible housing solution that can adapt to a person’s health needs over time.
But while CCRCs can be a smart choice, the truth is they’re not ideal for everyone. Understanding how they work, what they offer and what to consider before signing a contract can help families make a more informed decision.
What is a continuing care retirement community?
A continuing care retirement community is a residential option that provides a range of care levels in one location. Most CCRCs offer:
- Independent accommodation: For individuals who are in good shape
- Assisted living: For residents who can benefit from assistance with daily activities like bathing or medication management
- Skilled nursing care: For individuals who are monitored round-the-clock for medical reasons
The main appeal of a CCRC is that residents can “age in place.”
The costs and contracts
CCRCs typically require a large entry fee plus an ongoing monthly fee. These fees cover housing, services and future health care. The following are available types of contracts:
- Type A (Life Care): Higher entry and monthly fees, but most or all health care services are included at little to no additional cost.
- Type B (Modified): Lower initial fees, but residents pay extra if they need higher levels of care.
- Type C (Fee-for-Service): The lowest entry cost, but residents pay full market rates for additional care.
Because contracts vary so widely, it’s essential to carefully review the terms and enlist legal guidance before committing.
Questions to ask before choosing a CCRC
For families considering a CCRC, take time to visit several and compare. Here are important inquiries to make:
- Is the community financially sustainable?
- What services do residents access from the monthly package?
- What happens if a resident outlives their assets?
- What’s the staff-to-resident ratio at each care level?
Additionally, inquire about the facility’s licensing and accreditation. A reputable CCRC should be transparent about its qualifications and inspection history.
A continuing care retirement community can offer peace of mind for seniors and their families—especially those who want to plan ahead and avoid the disruption of moving as health needs evolve. However, before making a financial commitment, families should do their homework and seek legal guidance before signing on the dotted line.