For many retirees, the appeal of a continuing care retirement community (CCRC) is the promise of stability. One move can provide a home for today’s independent lifestyle and tomorrow’s potential healthcare needs. But CCRCs involve meaningful financial and lifestyle decisions, and it’s important to evaluate them carefully. Here are several key factors to consider before signing on and moving in.
The Upfront Cost and Financial Structure
Most CCRCs require a substantial entrance fee, often several hundred thousand dollars, plus ongoing monthly fees. Entrance fees may be fully refundable, partially refundable, or non-refundable, each with different price points.
There are also schedules in which a refund of the entrance fee is prorated over the first five years (for example). This means that the longer you stay, the less the refund.
In addition to the upfront cost, there are monthly fees that typically increase over time, often exceeding inflation.
Questions to ask:
Is the entrance fee refundable? If so, under what conditions?
How have monthly fees increased over the past five to 10 years?
Are healthcare services included, partially covered, or billed at market rates?
Understanding the contract and long-term financial obligation is essential. Your financial plan should account for the impact on your liquidity, potential long-term care costs, and estate goals.
Levels of Care and the Promise Behind Them
A core advantage of a CCRC is that it can span your changing needs, including independent living, assisted living, memory care, and skilled nursing. But each community delivers that care differently.
Consider:
Are higher levels of care guaranteed or subject to availability?
What happens if a spouse needs more care than the other? Can they remain on the same campus?
How does the community handle temporary rehab stays?
Many CCRCs offer “Type A” (extensive), “Type B” (modified), or “Type C” (fee-for-service) contracts, each with different coverage for future care. The differences can be substantial.
Financial Strength of the Community
Because residents will depend on the community for years, sometimes decades, the provider’s financial health matters.
Before committing:
Review audited financial statements and occupancy rates.
Understand debt levels and future capital projects.
Look at the community’s track record during economic downturns.
A financially stable provider is more likely to maintain facilities, retain staff, and honor long-term care commitments.
Lifestyle Fit and Quality of Life
The amenities and culture of a CCRC vary widely, from resort-style campuses to modest, service-focused communities. Lifestyle is an important piece of the decision.
Ask yourself:
Do the social, fitness, and dining options fit how you want to live?
What’s the community culture: energetic, quiet, faith-based, lifelong learning–focused, etc.?
Are residents actively involved and generally satisfied?
Touring a potential community several times, ideally at different times of day, can reveal a lot and help you determine if that CCRC is right for you.
Healthcare Quality and Staffing
Since access to future care is a major reason for choosing a CCRC, quality matters just as much as availability.
Look into:
Staffing levels and turnover.
State inspection reports for assisted-living and nursing areas.
On-site medical support and emergency response.
One community’s care model may feel very different from another’s.
Contractual and Estate Planning Considerations
Because the entrance fee can be a large financial asset, it’s important to understand the legal details.
Consider:
What happens to the entrance fee upon death or move-out?
How long does the community have to re-occupy your unit before returning a refundable fee?
Should beneficiaries be included in contract discussions?
A CCRC often becomes part of a resident’s broader estate and long-term care plan, so coordination with financial and legal advisors is wise.
The Bottom Line
CCRCs can offer peace of mind, community, and a predictable path of care, all in one place. But they’re also a significant financial commitment with nuances that deserve careful evaluation.
If you or a family member is considering this option, we work with clients to help review the contract, assess the long-term financial implications, and determine how the choice aligns with broader retirement and estate plans.
Schedule a chat with a fee-only, fiduciary financial advisor.