If you’ve always dreamed of spending your retirement in a resort community, a Continuing Care Retirement Community (CCRC) may be just the thing for you. Many CCRCs provide services for the type 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 grow old 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. Plus, you can look at the amenities and services offered with a realistic assessment of your level of involvement. Before signing a contract, you should consider the advantages and disadvantages 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 services such as indoor swimming pools, gyms, spa facilities, restaurants, cinemas and health care 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 fees
Now, let’s examine the disadvantages.
- Complex and Confusing Contracts and Service Models – Legal Review Recommended
- Substantial entry fees and variable monthly fees
- CCRC vulnerability during economic downturns causing increased risk of financial failures
- 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 down payment and monthly fees are not 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 and community contracts may be a better solution if their retirement funds are less robust.
