You may have heard of Continuing Care Retirement Communities (CCRCs) or Life Plan Communities. You may be wondering why millions of seniors find them to be a retirement lifestyle option. In this article we explore what is a CCRC and why it is the preferred choice for seniors who are looking for alternative options to living at home.
What is a Continuing Care Retirement Community (CCRC) or Life Plan Community?
Life Plan Communities are sought after by those who want an active, engaging, vibrant retirement lifestyle, along with the peace of mind of having a full continuum of care available as needed.
Most life plan communities offer a large campus-like setting providing housing, hospitality services, and amenities to independent and active seniors, along with care services that are available as needed, typically including assisted living, memory care and skilled nursing care.
Around three-quarters of all life plan communities require an entry fee, which may be partially to fully refundable to one’s estate, and possibly sooner if the resident vacates the unit. The other approximately 25% of life plan communities operate either on a rental-only basis or an equity (or co-op) ownership model whereby you own your home or a share of the community’s corporation, but still pay monthly fees for the available services.
A Quick Summary of CCRC Contract Types:
Entrance Fee: Fully, partially, or not refundable. Be sure to understand
the contract stipulations and requirements for an entry fee refund.
Equity or Co-Op: You own the title to your unit or have co-op ownership rights. Some equity-based life plan communities do not provide true ownership, but instead allow the resident or the resident’s heirs to share in the potential appreciation of the home or apartment when resold.
Rental: No entry fee required, other than possibly a nominal community fee.
Why Seniors Find CCRCs and Life Plan Communities Attractive.
Life Enrichment:
Today’s Life Plan Communities (also known as Continuing Care Retirement Communities or CCRCs) can enrich your life in many ways. Studies show that living home alone or feeling socially isolated presents a higher risk of heart disease or depression. Having a sense of community, of safety, and waking up every morning to a vibrant, active, meaningful life, can make a big difference in your quality of life. These communities often feel like high end high service resorts with no shortage of meaningful engagement for a healthy body and healthy mind.
Care for Life:
In addition, a seminal aspect of CCRCs is the “Life Care” contract which provides you with the opportunity to lock in future healthcare needs at today’s costs. This can bring predictability and peace of mind to your financial and health planning. As you age, if you are in need of assistance, there is often on the same campus the option of Assisted Living, Memory Care or Skilled Nursing Care, making it attractive especially for couples living together.
Often Not More Expensive than Living at Home:
Moreover, living at home is not “free” because there are costs associated with maintaining your home. When you sit down and crunch the numbers, you may be surprised to see just how affordable senior living can be! Take a look at the table below for a true comparison of the costs of living at home compared to the costs of a CCRC and what it can offer you in lifestyle, peace of mind, predictable healthcare costs, and a meaningful, vibrant, engaging life. But math is only half the story. Emotional happiness that comes from engagement is also important. And can you truly put a price on that?
Concluding Thoughts.
CCRCs frequently are large “campus” like settings with hundreds of to thousands of seniors living amongst their peers. They are staffed by professionals who understand the older adult and wake up every day with a passion for service. They are leaps and bounds ahead of what we remember as our grandparents’ nursing home. Activities abound, from art and exercise classes to continued education by guest speakers or authors, they are daily and meaningful. Moreover, the continuum of care as you age, provides tremendous peace of mind. We here at Second Act Financial Services are big fans of CCRCs and Life Plan communities and we encourage you to see for yoursel
About Second Act Financial Services
At Second Act Financial Services, we specialize in navigating CCRC financing needs. Our team brings extensive experience in retirement and banking solutions, focusing on home sale solutions, home equity lines of credit that can serve as bridge loan solutions, and connections to veteran benefits, long-term care insurance or life settlement resources. We help you understand your options for managing CCRC entry fees and provide support with our financial options every step of the way. Our proven track record in assisting clients with their retirement financing needs reflects our commitment to your financial well-being. Trust us to guide you with expertise as you plan for life in your chosen retirement community. For more information on how we can assist you, visit Second Act Financial Services.
Important Disclaimer
The information in this page is not meant to serve as financial, tax, or personal financial planning advice. No decisions should be made from reading the information on this page. Decisions should be made after careful analysis and consultation with your financial, tax, accounting, or other professional advisor licensed to provide retirement advice. Second Act is a Division of Liberty Savings Bank, F.S.B. Member FDIC. Lending and loan services provided by Liberty Savings Bank, F.S.B. NMLS # 408905. Equal Housing Lender. All other services provided by Second Act Financial Services, LLC. This information is current as of 1/01/2024. Subject to credit and loan approval. Conditions and limitations apply. Information, rates and terms are subject to change without notice. © 2024 Second Act Financial Services, LLC. All Rights Reserved.
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