Whether you’ve just started your research on senior living options or have been digging through search results for weeks, you’re likely to come across several continuing care retirement communities. You know they offer the retirement lifestyle you’re looking for, but they can also require a seemingly large entrance fee.
So what exactly is a continuing care retirement community and what are entrance fees used for? Get quick answers to your questions in this basic guide and learn how this popular senior living option can actually save you money.
What Is a Continuing Care Retirement Community?
A continuing care retirement community (CCRC), also known as a Life Plan Community, is a senior living option that offers independent living along with seamless transitions to higher levels of care, such as assisted living and memory care, in one location.
Communities like Aberdeen Ridge also feature a wide range of services and amenities suited to meet the interests and preferences of older adults, and abundant opportunities to make friends with people of a similar age with similar interests.
Residents in independent living enjoy a carefree lifestyle, and if they ever need it, they have access to higher levels of living on the same campus.
Why Do Some Communities Require Entrance Fees?
CCRCs/Life Plan Communities typically require a one-time entrance fee and regular monthly service fee.
Your entrance fee is based on the type of contract you sign, the size of residence you select, and the number of occupants.
The entrance fee secures your independent living residence and gives you priority access to future care. In part, the entrance fee is prepayment for long-term health care you may need in the future (that’s why some of it is usually tax-deductible). .
It is possible your entrance fee could cover the cost of care you may not end up needing. But the U.S. Department of Health and Human Services estimates that those 65 and over have almost a 70% percent chance of requiring some type of long-term care services, and they’ll need that care for an average of three years. Though you might not need long-term support, the peace of mind gained knowing you have ready access to high-quality care you can afford is priceless.
At Aberdeen Ridge, your entrance fee is largely refundable, which means a portion can be returned to you or your estate, once you’re no longer living in our community. The portion of your entrance fee that’s nonrefundable, as well as part of your monthly service fee, may be tax-deductible, because the IRS considers these fees to be a prepayment of medical expenses. Schedule an appointment with your tax advisor to see what deductions you can receive with your entrance fee for when moving to a Life Plan Community/CCRC.
Another enormous advantage of an entrance fee is that it can make it possible for a community to reduce the rates for access to services and amenities, thereby saving you money compared to living in a community without an entrance fee.
What Does My Monthly Service Fee Cover?
Your monthly service fee covers the costs of enjoying the fabulous retirement lifestyle a CCRC or Life Plan Community provides. At Aberdeen Ridge, everything from housekeeping and flat linen service to a fitness center with heated pool is covered by a single monthly fee. This makes balancing your budget a breeze, and it provides you with daily opportunities to enrich your retirement just steps away from your front door.
Here a few more services and amenities you can enjoy at Aberdeen Ridge:
- Creative arts center
- Game/social spaces
- Educational, recreational, cultural, wellness and social programs
- Flexible dining with chef-prepared meals
- Maintenance of all residences and grounds
- All utilities included (except for phone and internet)
Maintenance-free living at Aberdeen Ridge eliminates the stress of managing a fluctuating and expensive budget that comes with homeownership. You won’t have to worry about rising utility costs, surprise repair expenses, property taxes or homeowners insurance. And with chores like lawn care, snow removal and housekeeping taken care of by our team of professionals, you’ll have a lot more time for the activities you love.
How Is CCRC Different From a Senior Rental or 55+ Community?
Other retirement communities like senior rentals or 55+ communities are great options for seniors looking for a low-maintenance lifestyle with no large upfront costs. Though features of each community vary widely, many senior rentals and 55+ communities also offer resort-style amenities tailored to the interests of their residents.
However, most of these communities charge additional fees for maintenance and utilities. They often only have one level of living and rarely offer on-site health services, which means you’ll likely need to move to another community if you need a higher level of care … and you’ll probably have to pay market rates for that care. Residents at our CCRC receive the Aberdeen Ridge Unique Health Care Benefit, which locks in predictable monthly rates, even if your health needs change.
One of the biggest differences between CRRCs, like Aberdeen Ridge, and other types of retirement communities is that most are not-for-profit. You can always be sure our retirement community is always using the money from your entrance fee and monthly service fees to make your retirement extraordinary, not make extraordinary money off your retirement.
Discover the Benefits of Living in a CCRC at Aberdeen Ridge
The best time to choose independent living at Aberdeen Ridge is right now! The construction on our brand-new continuing care retirement community in Colorado Springs, CO, is almost complete and our gorgeous senior apartment homes are filling up fast. Don’t miss out on your opportunity to live the retirement lifestyle you deserve—call us at 719-286-3014 or contact our senior living counselors online to learn how you can reserve your new home at Aberdeen Ridge.