A Life Plan Community is also known as a CCRC, or a continuing care retirement community. This type of community offers adult residents peace of mind during their retirement years. These active senior living communities offer various types of care and assistance – independent living, assisted living, memory care, and skilled nursing or healthcare – all on one campus that share amenities, services, and lifestyle. Residents have the opportunity to receive the type of support they need, should they ever need it, on the campus they have called home for years.
But how much does peace of mind, access to luxury amenities, and a spacious home cost, and can you afford living in a Life Plan Community? Financial planning is crucial as you approach retirement and as you continue to live those retirement years. If you’re asking yourself, “Can I afford living in a CCRC?,” here’s what you need to know as you consider your future plans.
Life Plan Community Cost Structures
Life Plan Communities/CCRCs are not a typical senior living community. Instead, these communities offer a full continuum of care all on one campus.
Residents pay a monthly fee. This fee includes housing, utilities, amenities, and services. The fee also covers a meal plan for onsite dining.
Can You Afford It?
Retirement living, including Life Plan Community/CCRC living, is typically more affordable than most think. If you are grappling with if you can afford a CCRC lifestyle, here are a few tips to get you pointed in the right direction:
- Get the costs of the communities you are considering.
- Make an appointment with your financial planner to talk candidly about Life Plan Community/CCRC living, including the pros and cons for your specific situation. Review your current assets, savings, and future goals together.
- Invite your family members to join in the conversation about Life Plan Community/CCRC costs.
- Write down your current monthly expenses. Include your mortgage, utilities, grocery bills, expenses for going out, any fitness memberships, and other regular bills. Then, compare this cost to a monthly fee at a Life Plan/CCRC community that includes these expenses in a predictable and simplified monthly payment. The numbers might be closer than you originally thought.
- Ask questions about fee structure with the communities you are researching and touring. Ask about any deals they may have at the time as well.
- Explore ways to offset costs, including Veterans Aid & Attendance benefits, long-term care insurance, or private insurance.
- Run the numbers with your financial planner, family members, and even physician. Your doctor can provide you with any guidance or prognosis that might suit your future planning needs due to chronic conditions you might be living with.
Begin With an Inquiry
You cannot determine if you can afford a Life Plan Community/CCRC unless you know the initial and ongoing costs. Contact continuing care retirement communities in your area to inquire about general pricing structures. This way, you can take that information with you as you schedule your financial planning meeting so that you have a realistic idea of what expenses to expect.