Buckingham's Choice Pricing

When moving into a Continuing Care Retirement Community (CCRC), residents are required to pay an entrance fee, which can amount to several hundred thousand dollars. A CCRC entrance fee is intended in part to prepay for future healthcare needs at current rates, helping shield residents from inflated costs in the future. The fee also secures their residence within the community and serves as an investment in their future health, subsidizing much of their costs for higher levels of care such as assisted living or skilled nursing.

To put it another way, residents move in while fully independent and can take advantage of the community's amenities. If they later need assisted living, it is provided on campus without a direct increase in their monthly fee. This prepayment at today’s rates helps avoid inflation and financial uncertainty.

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

Included in the monthly fee are various services and amenities such as:

• Utilities such as electric or natural gas, water, standard cable television, and wireless internet
• Taxes like property taxes
• Maintenance including repairs, replacement of equipment, exterior cleaning, groundskeeping and lawn service, and snow removal
• Personal services that can include chef-prepared meals; recreation, fitness, aquatics areas and enrichment programs; 24-hour security; scheduled local transportation; educational seminars, classes, hobbies; and more

Should you or your loved one face difficulty in affording the monthly fees for a Continuing Care Retirement Community (CCRC), consider downsizing to a smaller living arrangement or seeking assistance from a benevolent fund. These funds, when available, help residents stay in the community even if they outlive their assets through no fault of their own. It’s important to ask about a community's policy for residents who outlive their assets and whether they have a benevolent fund when researching retirement communities. A thorough financial assessment should typically occur before residency, helping the resident prepare for budgeting expenses as a member of the community. 

In 2024, Maryland ranks as the eighth most expensive state for retirement because of its high state taxes and cost of living. NetCredit estimates that you will need just over $673,000 to retire comfortably in Maryland.

In Maryland, the average cost of living in a retirement community depends on the type of care and the particular community. As per the National Investment Center for Seniors Housing & Care, the average monthly fee for retirement communities is $3,960. Although the cost of living for retirement in Maryland is on the higher side, the state features a range of communities that offer exceptional amenities and services, making the expense more justifiable for many retirees.

In Maryland, retirees encounter multiple taxes such as state income taxes and additional local income taxes. Social Security benefits are exempt, but pension, 401(k), and IRA incomes are taxable, with some exclusions for seniors. The state imposes high property taxes and both estate and inheritance taxes, with exemptions for certain relatives. Retirees also face vehicle registration fees and personal property taxes on certain assets.

Long-term healthcare expenses at a Continuing Care Retirement Community (CCRC) are part of your contract, eliminating the need to determine their tax deductibility. Residents who itemize deductions may also deduct a substantial portion of CCRC fees as prepaid medical expenses, which includes both the one-time entrance fee and monthly fees.