If you’ve always dreamed of spending your retirement in a resort community, a Continuing Care Retirement Community (CCRC) may be just what you need. Many CCRCs provide services for the kind of lifestyle retirees want now and the health care protection they may need later. This type of community is gaining popularity among seniors who want to age in place and secure their care for the future. You should consider whether CCRC’s substantial fees provide a good investment of your retirement funds. Additionally, you can view the amenities and services offered with a realistic assessment of your level of involvement. Before you sign a contract, you should consider the pros and cons of entering into a life care agreement with a CCRC.
First, let’s look at the advantages of living in a high-end CCRC.
- First-class amenities such as indoor pools, gyms, spa facilities, restaurants, movie theaters, and healthcare centers located on the CCRC campus
- Well-appointed private residences
- Maintenance free living in a well designed and attractive community
- Social and educational opportunities
- Future health care needs served within the CCRC without substantially increasing monthly rates
Now, let’s examine the downsides.
- Complex and confusing contracts and service models – review by an attorney is recommended
- Substantial entry fees and variable monthly fees
- CCRC’s vulnerability during economic downturns causing increased risk of financial bankruptcies
- Potential disagreements about the timing of the move to a higher level of care
- Limited options due to contractual and financial restrictions if resident is dissatisfied with care or community
Resort-style continuing care retirement communities provide a distinctive lifestyle for residents who are active and healthy. If the down payment and monthly fees do not represent the majority of your assets, you can enjoy the freedom to worry about health care that a Life Care or Type A contract provides. Other types of CCRC contracts and communities may be a better solution if their retirement funds are less solid.
