Fairhaven Pricing

When moving into a Continuing Care Retirement Community (CCRC), residents pay an entrance fee, which can be several hundred thousand dollars. A CCRC entrance fee party prepays for future healthcare needs at today’s costs, so residents don’t have to wonder how high inflation will raise such costs in the future.

Simply stated, residents move in while independent and get to enjoy all the myriad amenities on offer. Then, should a higher level of care such as assisted living or skilled nursing services ever be needed, it is provided right on campus, for no direct increase in the existing monthly fee. The entrance fee has already covered much of these costs at today’s rates, shielding residents from future financial uncertainty and inflation.

The specific terms and coverage of the entrance fee can vary depending on the type of contract chosen.

The monthly fee contains various services and amenities, which include but are not limited to:

• Utilities such as electric or natural gas, water, standard cable television, and wireless internet
• Maintenance services like home and equipment repairs, plus lawn care and snow removal
• including repairs, replacement of equipment, exterior cleaning, groundskeeping and lawn service, and snow removal
• Amenities from swimming pools and fitness centers with classes to woodworking shops, art studios, excursions and transportation, 24-hour security, and much more

When you or your loved one find it hard to cover the monthly fees for a Continuing Care Retirement Community (CCRC), possible solutions include downsizing the living arrangement and/or seeking help from a community benevolent fund if one is available. This ensures that residents can remain in the community even if they outlive their assets through no fault of their own. It is recommended to ask about the community’s policy for residents who outlive their assets and if they provide a benevolent fund when considering retirement communities. A thorough financial assessment should typically be completed before residency, helping the resident prepare for budgeting expenses while a member of the community.

In 2024, Maryland is considered the eighth most expensive state to retire, primarily due to its high state taxes and cost of living. NetCredit reports that you need just over $673,000 to retire comfortably in Maryland.

The cost of living in a retirement community in Maryland fluctuates with the type of care and the community itself. The National Investment Center for Seniors Housing & Care states that the average monthly fee for residents in a retirement community is $3,960. While the cost of living for retirement in Maryland is relatively high, the state’s variety of communities that offer superior amenities and services often justify the higher expenses for many retirees. 

Retirees in Maryland must navigate several taxes, including state income and local income taxes. While Social Security benefits are exempt, pension, 401(k), and IRA incomes are subject to state taxes, with some senior exclusions. Maryland also has high property taxes and both estate and inheritance taxes, offering certain exemptions for close relatives. Additionally, retirees may face vehicle registration fees and personal property taxes on particular assets.

When living in a Continuing Care Retirement Community (CCRC), your long-term healthcare expenses are included in the contract, so you don't need to assess their tax deductibility. Additionally, residents who itemize deductions can deduct a considerable portion of CCRC fees as prepaid medical expenses, including both the entrance fee and the monthly fees.