Things You Should Consider When Looking At CCRCs (long-term, communities, 2013)

[LauraC]

Pretty good article on what you should know about Continuing Care Retirement Communities (CCRCs).

Most of the meat is on the second page.

Know your retirement community

Some factoids in the article:

Occupancy rate has been a flat 89% over the last 3 years.

There are 1,979 CCRCs nationwide, with 569,966 occupied units.

The average nationwide entrance fee for these communities is $280,618

80% of CCRCs are run by nonprofits

State laws governing CCRCs vary.

[brightdoglover]

Excellent article, thanks for posting the link.
That "average" entrance fee seems kind of high, but then, I've only paid attention to entrance fees at Erickson communities and those for a smaller apartment. I think you can cut deals, too, depending on what's going on at the community- like a higher monthly fee/lower entrance fee or some such.

I think people should also have someone who knows their stuff take a look at the organization's financials, similar to buying a condo. After all, you are buying property or property rights with other people in an organization. (Something I realized too late with a former condo of mine).

I have always thought a dream retirement home would be an indoor pool and restaurant meals- certainly if I have trouble driving, it will be.

[TuborgP]

Originally Posted by LauraC

Pretty good article on what you should know about Continuing Care Retirement Communities (CCRCs).

Most of the meat is on the second page.

Know your retirement community

Some factoids in the article:

Occupancy rate has been a flat 89% over the last 3 years.

There are 1,979 CCRCs nationwide, with 569,966 occupied units.

The average nationwide entrance fee for these communities is $280,618

80% of CCRCs are run by nonprofits

State laws governing CCRCs vary.

Thanks for the link and some great info. I have been following CCRC's for a number of years as a possible alternative down the road. I am finding that the concerns and risks are growing. The following link is from a GAO report 2010 and provides some possible downside insights for anyone interested. As you note state laws vary and that can be important.

http://gao.gov/new.items/d10611.pdf

While CCRCs offer long-term residence and care in the same community, residents can still face considerable risk. For example, CCRC financial difficulties can lead to unexpected increases in residents’ monthly fees. And while CCRC bankruptcies or closures have been relatively rare, and residents have generally not been forced to leave in such cases, should a CCRC failure occur, it could cause residents to lose all or part of their entrance fee. Residents can also become dissatisfied if CCRC policies or operations fall short of residents’ expectations or there is a change in arrangements thought to be contractually guaranteed, such as charging residents for services that were previously free.