CCRC Financial Advantages
Continuing Care Retirement Communities (CCRCs), also referred to as Life Plan Communities, are living spaces for older adults that offer a seamless range of care services as they grow older. While there are different types of CCRC contracts, the idea behind them is that residents can access higher levels of healthcare without having to relocate, all while maintaining a consistent monthly fee.
If you’re close to retirement, here are some CCRC financial advantages that you may want to know about before making any housing decisions.
1. Prepaid Healthcare Costs
Residents of CCRCs with Type A contracts pre-pay for long-term care needs like assisted living and skilled nursing care when they move in. This means they pay for healthcare in today’s dollars instead of future costs. And since healthcare costs are always increasing, pre-paying can be especially advantageous. Because residents prepay in part for long-term care, their monthly fee doesn’t increase when they need it. This offers strong financial security for your retirement, a key CCRC financial advantage.
Put another way, you have already pre-paid in part for your future needs through your entrance fee. That means you can identify your budget years and even decades into the future, knowing exactly how much you have to travel, spoil your grandkids, and anything else you want to do.
2. Consistent Monthly Costs
One of the most common concerns among retirees is whether they’ll have enough savings to live comfortably. Outside of a CCRC, living costs are unpredictable. Even if a retiree’s living arrangement is settled, the cost of house maintenance can be unexpected. A water heater goes or your roof needs replacement. And as retirees age, they may need more advanced medical care, which can result in expensive out-of-pocket costs. Other expenses like property taxes, utilities, TV and internet, gym memberships, and more contribute to unpredictable living costs.
One of the biggest CCRC financial benefits is that residents with Type A contracts know what their monthly expenses will be for the entirety of their retirement, which makes it easier for them to budget and plan for their future expenses. Living arrangements, medical care, amenities, and maintenance costs are all accounted for in the flat monthly fee of a CCRC that does not increase solely because advanced healthcare services are needed.
CCRC Tax Benefits
Many CCRCs are in states that offer excellent tax benefits for retirees. This is no coincidence, either – CCRCs have a vested interest in making life for their residents as comfortable and affordable as possible. Tax-friendly states like Florida, Georgia, the Carolinas, Delaware, and Pennsylvania have some of the greatest CCRCs in the country.
Other CCRC tax benefits include the ability to deduct medical expenses that exceed one-tenth of your income. Additionally, residents can also receive some nice tax rebates for prepaying for healthcare. You should consult a professional financial planner to determine what CCRC tax benefits are available for you.
4. No Moving Costs
Relocating to a separate medical facility when healthcare needs increase can be both stressful and costly. These expenses often include real estate transactions, moving fees, and the challenges of adjusting to new living arrangements.
Fortunately, a major CCRC financial benefit is that they come equipped with on-site healthcare facilities and staff, offering residents the convenience of accessing necessary medical care without leaving the community. This not only contributes to better health outcomes but also reduces transportation costs typically associated with off-site medical appointments. Ultimately, by choosing to stay in a CCRC, residents can avoid these potentially significant financial burdens
Find a CCRC That’s Right for You
Planning for retirement is a task that’s never too early or too late to start. If you anticipate potential changes in your medical needs during retirement or simply want to be prepared, moving into a CCRC with their many financial advantages is a smart way to future-proof your retirement.
Acts Retirement Communities offer some of the best CCRCs in the country. Explore our 28 campuses across 9 states to discover what arrangements work best for you.
