Retirement Community - Entrance fee based on age?

[lucky penny]

I've seen some Type A contracts with an extra lifecare fee (in addition to the entrance fee), but never based on one's age, and much more than $5,000.

At a CCRC I'm considering, the life care fee, payable along with the entrance fee, is $125K.

I went through helping my mom evaluating and moving into a CCRC 5 years ago now. I have a couple thoughts:

I also consider a CCRC as a likely destination for me, but my take on when revolves around delaying until it's absolutely necessary - but I'm still able to medically qualify. The monthly rent is considerably more than just a comparable apartment and the opportunity cost of the bond locked away adds up over time. My mom is still doing well and happy in her CCRC 5 years later. But it is expensive, and so far my mom has received very little benefit other than a nice apartment rental for what is a rather high price. Hindsight would be my mom would be better off moving into her CCRC today - at age 93 - and pocketing the previous 5 years expenses, but we didn't know that at the time of course. For my decision, I will play it by ear, but I don't foresee moving into a CCRC before/around age 80 or later in my plans. Hopefully much later. Nothing would please me more than moving into a nice CCRC independent living apartment at age 90 (25 years from now).

I've been considering CCRCs for a couple of years & can definitely relate to your rationale. At 77 & in great health I've not been in a hurry to relocate. In the past month though, I was diagnosed with a serious health condition & the prospect of needing future care hit hard, & now I'm wondering if I'd even qualify for a CCRC. Reading your analysis of your mom's situation, I was startled when you said she moved in at 88. I wonder how many that age could qualify for a CCRC! The extra cost of living there essentially pays for long term care insurance, & if it turns out she never needs the extra care, no regrets, she was very lucky. You said she's happy there, & both of you have peace of mind. That's worth a lot.

 

[youbet]

Hindsight would be my mom would be better off moving into her CCRC today - at age 93 - and pocketing the previous 5 years expenses, but we didn't know that at the time of course.

.

Yeah, that's how insurance works.......

Here, I'd be better off if I didn't have home insurance, car insurance, life insurance, etc. I've been lucky and haven't collected on any of them in decades but, of course, didn't know that apriori. Your mom paid for LTC insurance through the CCRC and didn't need it. I'd consider here fortunate it's working out that way.

Would you be happier if she'd had a stroke 3 - 4 years ago and was in the NH section of the CCRC? Financially, that would look great. But really, why wish her there?

 

[youbet]

I also consider a CCRC as a likely destination for me, but my take on when revolves around delaying until it's absolutely necessary - but I'm still able to medically qualify.

Good luck with that.

"Delaying until it's absolutely necessary" and "I'm still able to medically qualify" are oxymoron's. Getting into a Type A CCRC generally requires you to be fully able to live independently and with no degenerative issues likely to disable you in the near future. I don't know what you mean by "absolutely necessary," but if you mean you have worrisome issues regarding ongoing independent living, you've likely missed the boat.

How will you know it's "absolutely necessary" while you're still healthy and independent?

 

[imnontrad]

Well, they know that they will be taking care of you for a longer period of time. Sounds reasonable.

 

[Out of Steam]

I am considering retirement community. They are adding a fee because I am under 70. Thoughts?

Do you know if there will be people close to your age there? There's a significant difference in activity level and social interests between late 60s and 80.

A couple my wife and I know were in a luxury apartment while on a waiting list for a CCRC. They recently decided to postpone their move (at 78 and 80) because they liked the apartment so much. The CCRC also couldn't accommodate their camping trailer.

 

[Cayman]

We looked at several CCRCs. Just gathering info & planning. We're under 60 - All of them charge extra to "buy in" if you are younger (60- 65) and all limit how young you can be when buying + moving in. It's my understanding that there's additional risk associated with residents who are accepted for move -in at a younger age. Ask questions of the facility and you might consider several CCRCs - compare them.