Life Plan Retirement Community (CCRC) Questions To Ask Before You Sign

As retirement time gets closer, you start thinking about where you might want to live. One interesting option you might hear about is the Life Plan Retirement Community, also known as a CCRC. (Continuing Care Retirement Community.)

But, as lovely as the pictures are and as tempting as the descriptions sound, there are questions you need to ask before signing the contract. And answers you definitely need to dig into further even after you get them.

What is a Life Plan Community (CCRC)?

Life Plan Retirement Communities are designed to give you financial security and options for progressive (continuing) care if needed as you get older. They usually have cost-saving benefits built into the monthly fee (meal plans, cleaning, free transit, free utilities, etc.) plus a variety of social activities designed to keep you active and enjoying your retirement years.

But they are not cheap. Most have hefty upfront fees as well as monthly fees. You can start out in an Independent Living apartment or cottage and then, should you ever need it, move to higher levels of care for not much more money each month.

For most residents, the idea of having so much in one active life plan community is a big plus. But you do have to ask questions to make sure it’s right for you. And get your answers in writing.

WHY GET THINGS IN WRITING?

I tell you this because, as careful a person as you may be and no matter how often you ask your questions and get assuring answers, if it’s not in writing it never happened. Not fair and not comforting, but trust me: get the words on paper or in an email. Even well-intentioned people may lead you down the garden path unintentionally

Also, ask to see a copy of the resident handbook. There are a LOT of rules. Some may surprise you. Plus read the contract carefully — at least twice — before signing. You might ask a friend and / or lawyer to give it a onceover since after you get there it may be difficult to undo what you’ve just done.

Financial considerations of CCRCs

Some things to think about when deciding if a Life Plan Retirement Community is right for you financially:

• Tax deductions. Many CCRCs offer various levels of tax deductions since the Life Plan portion of what you pay is seen as health spending. Depending on your financial situation, this may affect your decision.
• Cost of regular assisted living facilities is sky high already and climbing. Can you handle that on your own if you need to move on to more care years down the road? Or maybe sooner unexpectedly?
• Can you afford CCRC upfront fees and monthly fees? They’ll run your financial info through their system before they decide whether to accept you. But will you be hindered by the tight finances even if you do qualify? You want to be comfortable and therefore really need to think about the cash flow you’ll need over the years.
• Find out if they are a non-profit and / or designed to keep you there even if you run out of money: “Many nonprofit CCRCs offer benevolence funds as part of their mission.”
• Compare what this will cost you over the years (again using cash flow analysis) vs. staying in your current home (aging in place) and paying for any long term home care you may eventually need. For some it’s a better option — especially if you love where you live. (Remember costs for each option will unfortunately rise each year.)
• Also … if staying in your home might actually be cheaper, think about how much money you might be able to save aging in place. Would the amount you save each year if invested securely be enough to cover higher level of care at a professional facility if you ever need one? (Best guesses on contributing factors.)

Beware Life Plan Community marketing teams!

As with so many things we are being sold, a CCRC has people who market their services. I’ve found them to be friendly, enthusiastic, and for the most part truly convinced they are selling a great product.

But not all of them are fully trained in the things that they think are true or that accurately represent what you’d be getting. Again, I’m not saying they are being slick (although some might be), but once again you need to make sure everything you ask about that matters to your decision is put in writing. You might need back-up if things aren’t exactly what you believed.

And since a lot of the marketing will be done on the phone or in person, just take careful notes and send an email asking if what you think you heard is correct. And if not, get them to write you what the correct information is. A lot gets discussed on the way to signing the contract. Don’t just assume a smiling face has the correct info, even if they truly believe they do!

Questions to ask CCRCs

• Precise benefits you’re getting from living at a CCRC.
• Exact services you get included in monthly fee.
• Their upfront fee refund plans & exactly how they work.
• How noisy is it there?
  • Noise from neighbors: Soundproofing for side neighbors as well as above and below.
  • Nearby highways or other nearby noisemakers, including airports.
  • Noise from hallway, elevator, or other nearby devices.
• Distance of your apartment to main building or services that you’ll need (dining, mail, reception, etc.)
• Guest policies.
• Parking policies for you and guests.
• Smoking policies — tobacco and other.
• Deliveries – how are they handled?
  • Do any deliveries come right to your door?
  • Can you get dining service meals delivered? If so, what is the fee?
• Are there extra charges for extra services such as maintenance service calls or help with telecommunications?
• Will you be kicked out if you run out of funds for no reason other than a long life?
• Are there backup generators in case of emergency.
• Extra elevators in case one is out?
• Which devices you may eventually need (such as  a scooter) are allowed on the grounds? Where do you keep them?
• Types of activities, especially ones you enjoy. Can you suggest new ones?
• Is there a community app / online site for central info?
• Level of resident participation in decisions and activities.
• Financial condition of the CCRC with documentation. (They can promise you the world, but will they exist in 20 years?)
• Do they require any special type of health insurance?
• And anything else you think is a must for you … have it spelled out to be sure you’re getting it.

One more thing

As you decide whether the CCRC is right for you, they’ll also be deciding if you’re right for them. And it’s easy to get so caught up in being likeable and someone they will accept, you may loosen up on how much you ask. And how much you dig into what you’re hearing.

This is a long-term probably rest-of your-life commitment. So don’t let the feeling of interview pressure (just like with a job) cause you to lower your resolve to find the answers you need.

More posts to help:

Retirement Planning Tips & Support

MORE questions & info (from AARP):

How Continuing Care Retirement Communities Work