Is the Cost of a CCRC in Your Budget?
Moving into a retirement community may be daunting for some because they get sticker shock the second they see the price. However, you cannot look at the price of a continuing care retirement community (CCRC) alone in a vacuum. When you consider the services that we provide, you may find that you come out ahead with a CCRC.
What Do You Get With a CCRC?
A CCRC is a continuing care retirement community.[1] It is its own special type of retirement option, and many who are used to hearing about assisted living facilities are not as familiar with this kind of living. First, they need to fully understand the services that they would receive here before they can figure out the value.[2]
Adults who live in a CCRC receive the benefits of senior living along with access to multiple different types of medical care as necessary. Adults who initially enter a CCRC are healthy and independent. As their needs change however, there is a continuum from independent living to skilled nursing care when you. A CCRC is meant to be a combination of the convenience of senior living along with a wide range of different types of care. At the same time, you can maintain your independence.
Adults who are considering a change in their living situation have a number of different comparisons to make when thinking about a CCRC. Many are used to thinking of a linear choice between their home and assisted living or assisted living versus a nursing home. They need to make each comparison when making their living decision.
Are CCRCs Worth it?
This is one of the first questions that families will consider. Like any type of senior living option, CCRCs will cost more than if you stayed in your own home. You are likely doing cost comparisons between the two.[3]
However, when you are reaching an advanced age, living on your own at home is not as simple as just paying the mortgage. You will have a whole host of other expenses. These can range from home health care to things such as landscaping that you don’t want to do or can’t do on your own.
Home Health Care Makes Staying Home More Expensive
Even if you do not need home health care right now, you likely will need some help in the future. The cost for these services is increasing as many more people want to remain at home instead of going into a nursing home. You can count on paying much more than the current price if you need these services in the future.
You need to take an objective look at what each of the services that you need would cost if you chose to remain completely independent at home.[4] Moreover, you should also account for the fact that your needs will change as you get older and home-based services will get more expensive, both due to inflation and your greater needs.
Independent living data also shows that you need to bear the cost of your own utilities when living at home. These increase over time, too. When you live in a CCRC, they are included in your costs. In Florida, these costs add up quickly every time you run your air conditioner. The same goes for many of the costs of incidentals that you would need to pay if living independently.
Assisted Living Means You Could Outlive Your Money
The other comparison you may be making is a comparison of the cost of a CCRC to that of assisted living. Here, a CCRC may also compare favorably and could be a better value option for you or your loved one.
Assisted living is just one step on the care continuum. Seniors would generally remain in assisted living until their medical situation changed to the point where they would need more intensive care.[5]
An assisted living facility is generally not eligible for Medicaid payments. Accordingly, you would be using your own money to pay for it. With that in mind, you would need to consider life expectancy in an assisted living space. If you run out of money during your lifetime, you would need to move elsewhere.
Not only must you factor in the average length of stay in assisted living, but you must also budget out for a longer than average stay. The last thing that you want is to have to move because the money runs out and you can no longer afford it.
You Must Also Consider Non-Monetary Factors
The CCRC demographics feature a wide age range of people living in their communities. In part, this is also because there are non-monetary factors that make it preferable for both residents and their families. The reduced stress of living in a community where your needs are provided in a centralized manner has a considerable value that cannot be measured in dollars and cents.
Ultimately, you will do a side-by-side comparison of the costs of a CCRC versus living at home. You may also compare a CCRC with the price of assisted living. There are numerous worksheets available where you can perform this comparison. When you are factoring in the costs of living at home, you need to be expansive in thinking of both how your costs may change over time and how inflation will impact your cost of living. Moreover, you need to consider the convenience of having services available for you.
Buena Vida Estates can offer you a comprehensive CCRC option where you can maintain independent living with an assurance that you will always have the level of care you need without having to move. Contact us today to see what we have to offer!
References:
[1] https://www.aarp.org/caregiving/basics/info-2017/continuing-care-retirement-communities.html
[2] https://www.mylifesite.net/blog/post/ccrc-cost-vs-value/
[3] https://www.kiplinger.com/article/retirement/t010-c000-s002-how-to-shop-continuing-care-retirement-community.html
[4] https://aging.com/in-home-care-costs-breakdown/#:~:text=Typically%2C%20the%20daily%20rate%20for,you%20need%20as%20a%20client
[5] https://www.caring.com/senior-living/assisted-living/how-to-pay/
