What bills do you no longer have when you move into a CCRC?

[MercyMe]

I'm thinking about my future self in 20 years when I'll probably be considering a move into a CCRC. I wonder how my typical cost of living will be impacted by it.

I guess I'll still have car maintenance, cable TV, cell phone, Medicare, and some clothing costs. But I'm guessing I probably won't be vacationing much and grocery costs will decrease if the CCRC offers free food. And I won't have property tax, electric, or water bills at that point either.

So, what bills do you no longer have after you moved into a CCRC?

 

[cbo111]

Lots of home costs will disappear, like insurance, property tax, new roof, appliance repair, landscaping, etc.

 

[Teacher Terry]

2 of my friends live in one and cable is included.

 

[aja8888]

2 of my friends live in one and cable is included.

One of my neighbors is in one to the tune of $8,500/month, with cable included, however, there are NO sports channels in the lineup and management refuses to add them (for monthly fee).

 

[audreyh1]

When DF moved to a group living situation, the cable/telephone/internet bundle was his only monthly cost.

Still doctors etc., and prescriptions. Personal care such as going to get a haircut.

 

[braumeister]

My understanding is that you'll most likely get basic cable, but probably have to pay for whatever entertainment level above that, as well as internet. As for the food, many places offer either a dollar meal allowance, or X meals per month at no cost, and you pay beyond that. Groceries and food you cook yourself are above that. Probably car expenses will remain the same, unless you pay for covered parking, which is also a common thing. Renter's insurance may also be a wise thing to get.

 

[harllee]

At my CCRC we have cable included with all the channels most anyone could want including sports channels (not NFL channel). High speed internet is included, works great. All utilities are included. Weekly housekeeping is included and they will do your laundry for $20 per week. We have a great fitness center opened to the public that is included in our monthly fee (public pays about $70 per month). Food is included (enough for lunch and dinner each day) unless you opt out. All maintenance is included. We pay no property taxes and we only need a renters type insurance. A lot of transportation is included to events, shopping, doctor appointments etc. We had 2 cars before moving into the CCRC but now we have only 1 car so we save all the expenses of a second car. Our CCRC is a Type A Life Care Community so long term care insurance is not needed. We have an excellent library with a full time librarian who orders books upon request so I do not need to buy books anymore. There is a movie theater here with great movies so we do not pay to go to the movies anymore. There are so many events here at the CCRC we have substantially eliminated our entertainment costs. We can invite friends and family to eat in our dining room using our points (cost is $3 per guest) so we rarely go to restaurants now.

 

[Walt34]

When I took over my mother's finances when she was in the CCRC, I wrote two checks a month for her: The CCRC monthly fee and the cable TV bill.

 

[bada bing]

I manage the finances for my mom, who's been in a type A CCRC for 4 years now. A lot of the typical bills are consolidated into the monthly CCRC payment. Things like food, transportation off site, hair stylist, etc. are variable discretionary add ons. And of course, all the housing related utilities, taxes and maintenance are built into the bill. Additional bills for my mom are cable package and internet. I keep a car that I pay expenses on in her assigned parking spot, so I have something to drive when I visit. She doesn't drive anymore or have car related expenses.

If you wanted a rule of thumb, I'd take the recurring monthly CCRC bill amount and add $1000 for incidentals.. That's my mom's budget and it works out without her having to scrimp. As an example, her monthly CCRC bill is usually $6500 with typical incidentals and then add $1000 additional to pay for cable, internet and buying whatever. Most of her shopping is Amazon deliveries that I order for her.

Additionally, make sure you understand how your medical insurance fits with CCRC services. In particular, how the rules work for time spent in facility skilled nursing and for moving from independent living to assisted living. You can run up a bill there if you don't follow the rules.

An additional expense is that type A life contracts have a pretty hefty entry bond. My mom paid ~$400K. The bond is 75% refundable when you leave (die), but it has no investment return imputed while they hold it. From what I've seen, the amount of bond for entrance varies among facilities and contracts and you have to account for the bond in the total cost. Usually a lower bond equates to higher monthlies, all else equal.

CCRC isn't cheap, and there are some pluses and minuses I've noticed. But it is the best option IMO when you're not moving in with family when you need support. I anticipate a CCRC being in my future, but hopefully 15-20 years off.

 

[braumeister]

If you wanted a rule of thumb, I'd take the recurring monthly CCRC bill amount and add $1000 for incidentals..

That sounds like a good approach.

 

[motley]

I'm thinking about my future self in 20 years when I'll probably be considering a move into a CCRC

? What's that?

 

[Teacher Terry]

Bada bing, my friends in ccrc’s have only spent a few hundred a month. I’m surprised your mom spends that much.

 

[harllee]

Even in a CCRC you still have to pay for Medicare, Medicare supplement and Part D and prescriptions. My main expense over the last few months has been dental bills, ugh. I also do quite a bit of charitable giving. I still go to the grocery store a couple of times a month (or you can have groceries delivered) for things like paper products, toiletries, wine, breakfast stuff, etc.

 

[MercyMe]

Thank you all for the information. Now I just need to figure out how much to budget for this. Seems like $120k (inflated 5% annually) per year for me and my spouse might be enough.

 

[MercyMe]

I manage the finances for my mom, who's been in a type A CCRC for 4 years now. A lot of the typical bills are consolidated into the monthly CCRC payment. Things like food, transportation off site, hair stylist, etc. are variable discretionary add ons. And of course, all the housing related utilities, taxes and maintenance are built into the bill. Additional bills for my mom are cable package and internet. I keep a car that I pay expenses on in her assigned parking spot, so I have something to drive when I visit. She doesn't drive anymore or have car related expenses.

If you wanted a rule of thumb, I'd take the recurring monthly CCRC bill amount and add $1000 for incidentals.. That's my mom's budget and it works out without her having to scrimp. As an example, her monthly CCRC bill is usually $6500 with typical incidentals and then add $1000 additional to pay for cable, internet and buying whatever. Most of her shopping is Amazon deliveries that I order for her.

Additionally, make sure you understand how your medical insurance fits with CCRC services. In particular, how the rules work for time spent in facility skilled nursing and for moving from independent living to assisted living. You can run up a bill there if you don't follow the rules.

An additional expense is that type A life contracts have a pretty hefty entry bond. My mom paid ~$400K. The bond is 75% refundable when you leave (die), but it has no investment return imputed while they hold it. From what I've seen, the amount of bond for entrance varies among facilities and contracts and you have to account for the bond in the total cost. Usually a lower bond equates to higher monthlies, all else equal.

CCRC isn't cheap, and there are some pluses and minuses I've noticed. But it is the best option IMO when you're not moving in with family when you need support. I anticipate a CCRC being in my future, but hopefully 15-20 years off.

What are some of the pluses and minuses?

 

[harllee]

Thank you all for the information. Now I just need to figure out how much to budget for this. Seems like $120k (inflated 5% annually) per year for me and my spouse might be enough.

That would work if you are in a CCRC like mine. You also have to plan for the move in cost which was around $500,000 for me and my husband for a smaller 2 bedroom unit.

 

[Koolau]

That would work if you are in a CCRC like mine. You also have to plan for the move in cost which was around $500,000 for me and my husband for a smaller 2 bedroom unit.

I assume that $500K is mostly the "partially refundable bond" that bada bing mentions??

 

[harllee]

I assume that $500K is mostly the "partially refundable bond" that bada bing mentions

None of my entrance fee is refundable. At my CCRC is there is a 70% refundable option but hardly anybody does it-- the entrance fee is substantially increased if you elect the refund option and the numbers do not make sense. My $500,000 entrance fee does include some upgrades I elected such as wood floors, kitchen upgrades, covered parking etc. The entrance fees at my CCRC range from around $350,000 (for a one bedroom) to over 1 million for a large detached villa with a 2 car garage. Keep in mind that my CCRC is more expensive than many in my area because it is a Type A Life Care--you monthly expenses do not increase when you have to move to a higher level of care like skilled nursing or memory care.

 

[Koolau]

Thanks. When we looked locally there were several options. The more you put "up front" the more was refundable. There was one option that was non-refundable. IIRC it was well less than $100K. I assume such things are very "location" dependent.

 

[njhowie]

I'm thinking about my future self in 20 years when I'll probably be considering a move into a CCRC. I wonder how my typical cost of living will be impacted by it.

Things can change in 20 years, possibly in significant ways. I wouldn't make any assumptions on expenses based on today's model or pricing.

 

[MercyMe]

That would work if you are in a CCRC like mine. You also have to plan for the move in cost which was around $500,000 for me and my husband for a smaller 2 bedroom unit.

Yup. I don't count my existing home ($700k, paid off) in any of my financial plans because I think it would be used for the buy-in.

 

[MercyMe]

Things can change in 20 years, possibly in significant ways. I wouldn't make any assumptions on expenses based on today's model or pricing.

Your absolutely right, but I need a starting point. Our future spending needs govern what we spend today.

And we are habitual worriers... knowing we will have a very, very bleak end of life since we have no kids and no younger family member to give a hoot about us. Hard to sleep at night knowing that the "end" will be miserable.

 

[mwilson]

Depends on CCRC of course but likely:

Medical insurance
Medical extras (my parents paid extra for temporary in-room nursing care for a few days)
Some or all transportation (doctor's visits)
laundry?
meals for visitors
Overall they are very happy and the extras are all reasonable.

 

[Koolau]

Your absolutely right, but I need a starting point. Our future spending needs govern what we spend today.

And we are habitual worriers... knowing we will have a very, very bleak end of life since we have no kids and no younger family member to give a hoot about us. Hard to sleep at night knowing that the "end" will be miserable.

I've known a lot of people who have lived out their days at home and, other than the infirmity of old age/medical issues, they were no more miserable than those who chose a CCRC. But worrying about your end of life may well interfere with the enjoyment of the life you have left.

Do your best to plan and prepare - then live your life to the fullest. Control what you can - don't worry about what you can't control.

 

[harllee]

My mother moved into a CCRC many years ago and was active and really enjoyed it. Now at age 93 she has Alzheimers and other health problems and a few months ago i helped her move from her independent living apartment to skilled nursing in the same CCRC. I am so grateful she made the decision to move to a CCRC years ago, what a blessing it has been for her and our family. Seeing what has happened to my mother encouraged me and my husband to move into a CCRC. We are glad we did and it has given us peace of mind. I have a separate thread about my experiences in my CCRC.