Continuing Care Retirement Communities

(8/29/2023)

A continuing care retirement community (CCRC) is a type of retirement community in the U.S. where you can get different levels of care, from independent living to skilled nursing care, in one place1. CCRCs offer a long-term contract that covers housing, residential services, and nursing care2

The cost of a CCRC depends on many factors, such as the type of contract, the level of care, the location, and the size of the unit. According to some sources, the average entrance fee for a CCRC in the U.S. was just over $400,000 in 20211, and the average monthly fee was about $3,5002. These costs can vary greatly depending on the individual situation and the CCRC you choose.

Whether the cost of a CCRC is worth it or not depends on your personal preferences, needs, and financial situation. Some of the benefits of living in a CCRC include:

  • Having access to different levels of care in one place, from independent living to skilled nursing care.
  • Having peace of mind that your future health care needs will be met.
  • Having a sense of community and social engagement with other residents and staff.
  • Having access to various amenities and services, such as dining, housekeeping, transportation, recreation, and wellness programs.

Some of the drawbacks or risks of living in a CCRC include:

  • Paying a large upfront fee that may not be refundable or transferable.
  • Paying monthly fees that may increase over time or due to unforeseen circumstances.
  • Having limited control over your living arrangements or care options.
  • Having to abide by the rules and regulations of the CCRC.
  • Having to deal with potential financial or operational problems of the CCRC.

Ultimately, the decision to join a CCRC is a personal one that requires careful research and planning. You should compare different CCRCs and their contracts, fees, services, and quality ratings. You should also consult with your family, financial advisor, and legal counsel before signing any contract. A CCRC can be a great option for some seniors who want to enjoy a comfortable and secure retirement lifestyle, but it may not be suitable for everyone.