As your parents age, you will probably start discussing plans for their care later in life. Some people might want or need to move to an assisted care facility or senior living community, others might want to stay in their home for as long as possible.
Whether you’re planning for your parents or yourself, it’s important to know what all of your options are.
One of these options is a continuing care retirement community, or CCRC.
What is a Continuing Care Retirement Community?
A CCRC is a nonprofit community that offers senior living with an upfront cost and a monthly fee. Many of them accept new residents at age 55 and beyond. They combine independent living, assisted living and nursing home facilities. That way, as residents age, they can move to the next level of care.
What are the Financial Benefits of Continuing Care Retirement Communities?
Think of a CCRC as a one-stop-shop for senior care. Healthy adults can live independently on campus in an apartment or condo. As they need more care, the care is right there for them.
That works out financially because switching from a house to a smaller home and eventually to a nursing home can become very expensive, especially when you include buying and selling fees. With a CCRC, residents know upfront what the costs will be and can better stick to a long-term financial plan.
But at a CCRC, the fee structure works like this:
Residents pay an entry fee, and according to Senior Living, this could range anywhere from $80k to $750k. After that, there is a monthly fee of about $1k to $5k.
The fee is determined by contract type, and most CCRCs will have three:
- Extensive or Life Contracts – These are the most expensive because they are the most inclusive. They offer unlimited assisted living and health services, usually at no extra cost.
- Modified Contracts – Similar to the extensive contracts, but modified contracts only include some health services in the monthly fee. Should a resident need more help, they’ll be charged market rate for those services.
- Fee-for-Service Contracts – These contracts offer a more affordable initial fee, but residents will have to pay market rates for health care as they need it.
Some facilities offer rental agreements without an entrance fee, but these aren’t as common.
Who is a CCRC right for?
A CCRC can definitely be more expensive than other common retirement options, but that’s because it works almost like an insurance policy. Instead of being hit with surprise fees from having to move or needed medical help, a CCRC builds those costs in (depending on the plan.)
If you or your parents can afford it, it’s a strong option financially because you can better plan for the long term. It also offers the option of aging in a familiar place, and the peace of having everything you or your parents need in one location.
As with any retirement facility, remember to:
- Talk to residents to see how they feel about living there
- Interact with the staff
- Carefully read the fine print and know what services are and are not offered
- Ask to see any licenses or complaint reports
Continuing Care Retirement Communities in New Hampshire
There are several CCRCs in New Hampshire to choose from. Check the updated lists at Senior Caring to find New Hampshire facilities.
Do you need help planning for retirement? Contact me today to set up a meeting to talk about your goals. You can also download my free ebook for physicians for tips and information about getting your finances on track.