Financial Considerations When Choosing a Continuing Care Retirement Community
June 23, 2023
When it comes to making a long-term decision about senior living, there is a lot to consider - and one of the key factors is, of course, financial. Choosing a continuing care retirement community (CCRC) is a big commitment, and it’s important to know the various financial considerations before deciding if this is right for you.
One of the main financial considerations is the type of contract available at the CCRC. There are two types of contracts: rental and life care. With a rental contract, you pay a monthly fee that covers the cost of accommodation and services. With a life care contract, you pay an initial entry fee, as well as a monthly fee. The entry fee is generally much higher than with a rental contract, but it does provide more comprehensive coverage for health services and long-term care.
It’s also important to consider the additional costs associated with living in a CCRC. These costs can include:
- Social activities
Some CCRCs also charge extra for access to premium amenities, such as private dining or fitness centers. It’s important to take all of these additional costs into consideration when deciding if a CCRC is the right choice for you.
Finally, it’s important to think about the long-term financial implications of choosing a CCRC. Most contracts are subject to annual fee increases, which can add up over time. Additionally, some contracts may include penalties for early termination or changes in service levels. It’s important to consider all of these potential costs before signing a contract.
Choosing a CCRC is a big decision, and it’s important to take the time to consider all the financial implications. By understanding the different types of contracts, additional costs, and long-term implications, you can make an informed decision that will best meet your financial and lifestyle needs.