As we age, there comes a time when we begin to question some of the basics of where and how we live. Downsizing becomes a regular discussion point. While moving from a home filled with wonderful memories can be daunting, the work required to maintain a home can be equally challenging. In fact, for many, remaining in a family home to “age in place” may not be practical. At Bridgewater, we are finding that a growing number of clients are looking for ways to simplify their lives.
Finding an apartment with no stairs, or perhaps moving to an area that offers greater access to meaningful cultural or recreational activities is often an initial consideration as people contemplate this type of move. However, this potential solution does not always meet longer-term needs people may have as they age, and they need more help. That often necessitates a second move. As a result, more and more clients are asking us about retirement communities.
Because there is a wide variation in the types of retirement communities available, it’s important to give yourself ample time to do your research if you think this option may be part of your longer-term plan. As a general rule of thumb, we recommend that clients start looking at retirement communities that might be of interest 3-5 years before they would actually contemplate a move. In fact, it’s particularly important to note that you should start thinking about your options well in advance of your likely needs, because many of the most popular retirement communities have long waiting lists. Some also require you to be at a particular level of health and mobility in order to enter. The best retirement communities want you to join them while you’re healthy, can live independently and be actively engaged in their community for as long as possible.
We have also seen clients benefit from the support of a retirement community when there’s a disparity in overall health and physical ability within the couple. Together, will you be capable of caring for each other and living independently? If there are significant differences, consider the health factors that might indicate one of you will need more care and assistance. Many communities offer both independent living and a range of assisted living opportunities, striving to keep couples together or nearby, providing a supportive and nurturing environment.
Not all retirement communities are the same
Sometimes retirement communities may be confused with traditional nursing homes. But, in fact, many retirement communities are full of relatively young, healthy, active adults who are enjoying a wonderful new phase. More and more of these communities are for the not-so-old. Some even have members who are still working. They are good places to find interesting, engaged people you want to be around.
As you begin your research, it’s important to understand the different types of retirement communities in the United States. They provide different services and have different financial requirements.
Continuing care retirement communities (CCRCs) have become more common throughout the country, and are a very good solution for many people, but at first blush might seem quite expensive. They offer, under one contract, an independent living unit (an apartment or cottage), residential amenities and access to a continuum of long-term care services, designed to flex as your health and social needs change over time. If you take advantage of the Lifecare Program offered by the CCRC, they are contractually obliged to provide assisted living, memory care and round-the-clock skilled nursing, should you need it. The bottom line: They’re incentivized to keep you healthy.
Residents at this type of community pay an upfront entry fee and then a monthly maintenance fee which covers many services and ongoing support. Some of these communities are for-profit companies and others are non-profit organizations. Those CCRCs that are non-profit organizations are committed to providing the level of support that you might need throughout your life, even if you run out of funds to cover that support. As you evaluate individual communities, it’s important to understand whether it’s a for-profit or non-profit entity, as they have different obligations to their residents.
Assisted living communities. If you have reached a point at which you cannot live independently, these communities can also offer a great solution. They have support staff, and provide meals, along with at least some health care management and monitoring. You can expect to get help with daily living activities such as bathing, dressing, eating, housekeeping and laundry. Because they provide fewer services than a continuing care community, they are often a little smaller, which can be comforting to residents.
These communities typically charge a monthly fee with no upfront cost, but that monthly fee is usually higher than that at a continuing care retirement community. Many of these communities also have Memory Care units, should that type of support become necessary. While memory care support can be critical, the monthly fee is likely to be substantially more than the basic monthly fee at a typical assisted living facility. It is important to understand that, although you avoid the upfront lump sum payment assessed at a CCRC, you’re locked into a level of service that may not be sufficient for the latter years of your life. If you need more support than is available, you may need to bring in your own care, or you will most likely need to move to another community or facility that offers the support you need. Unlike the non-profit continuing care retirement communities, assisted living communities are not required to cover your needs should you run out of funds.
As questions about downsizing to a retirement community have become more common among clients, we regularly run financial analyses to help guide clients in the decision-making process. Don’t hesitate to ask for our assistance if this is on your mind.
Because this has become an important topic for many, we are preparing a follow-up piece outlining some of the key questions and considerations that should be on your mind as you evaluate whether a retirement community is right for you.