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CCRC – A Growing Trend in Senior Housing

Over my 34 years in the financial services industry I have witnessed many trends driven by demographics. The latest trend involves moving out of a longtime residence to a continuing care retirement community (CCRC).

It is becoming popular because a CCRC offers their residents many types of living arrangements; independent living, assisted living and skilled nursing care. The major advantage is that the resident will not have to move from the CCRC as their health needs change, thus minimizing the difficulty of leaving familiar surroundings. Also, many have the added security of assuring that the resident never has to move out of the community (regardless of financial resources) if they are receiving skilled nursing care.

Most of my older clients have expressed a strong desire to remain in their personal residences. This becomes more difficult (if not impossible) as their health deteriorates. The ease of changing a lightbulb or getting something off a high shelf becomes difficult and dangerous. Faced with this reality, they look for an alternative living arrangement such as a CCRC while they can still live independently. The appeal of not having to move again as the aging process advances is comforting for the resident and their family.

Most CCRCs require a buy in (can be multiple options) and financial qualification before the new resident is accepted. In some plans the buy in is partially refunded to the resident’s estate after their death. In addition to the buy in, there is a monthly fee specific to the level of care required by the resident. Long Term Care Insurance can be used to help pay for the level of care needed, depending on the specific policy provisions.

There is a large and growing demand in the United States for CCRCs because they offer their residents an opportunity to receive different levels of health care on the same campus. This eliminates the need to move as the resident’s health changes. The resident must be independent and meet financial qualifications before the community will accept them.


Web Resources for CCRCs

The author of this article, George S. Urist, MBA, CFP® is President and Owner of Urist Financial and Retirement Planning, Inc., located in East Syracuse, New York. George Urist has been a CERTIFIED FINANCIAL PLANNER™ practitioner and Registered Representative with LPL Financial for over 30 years. George can be followed on twitter @gurist and can be reached at 315-445-2147 or Company information can be found at Securities offered through LPL Financial. Member FINRA/SIPC

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.