I do a lot of work with helping retirees downsize from their house to a new lifestyle in retirement. Part of what I do is to review retirement living options which include ideas such buying a condo, renting an apartment, senior housing, in-law apartment on the kids house, and a growing area of resident options called called “Continual Care Retirement Communities” (or CCRC). These communities offer many amenities in one local setting. Often hairstylists, doctors, restaurants, cafe’s, convenience stores etc are all on campus. Social activities are extensive and the ability to make new friends is there. In my experience (personal and business), a CCRC can be a wonderful option for helping seniors keep mentally sharp through social interaction and physical activity.
Financially, these communities are broken down between “full service” communities and “fee for service” communities. Full service communities offer (if needed) assisted living and skilled nursing care for the same flat monthly rate. Fee for service communities often offer a lower independent living rate than the full service communities, then offer higher levels of care at increased cost if needed. In my experience, people should consider purchasing a long term care insurance policy if they go the fee for service route. Both options should be reviewed with the help of a professional.
CNBC interviews Dennis Erickson
John Erickson, CEO of Erickson Retirement Communities (the developer of Brooksby Village in Peabody, MA and Linden Ponds in Hingham, MA), makes some good points about seniors who wait too long to decide about their living options and then lose out on some options due to declining health. This is one of the biggest concerns that I bring to clients when discussing retirement living options – staying in their house too long and then being too unhealthy to have a full range of choices. Note: one must have good physical health to gain entry to a CCRC. If a resident gets sick in there, it’s ok but a senior must be IN first. I see a lot of regret in this area where people want to move in AFTER they get sick – then it’s too late.
Check out Mr. Erickson’s interview here:
And if you have any questions about this, email me or post them – it could be educational for others.
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