It’s hard to determine the cost of senior living due to the unknowns life brings. None of us can predict how long we’ll live or our physical needs for tomorrow.
Continuing Care Retirement Communities (CCRCs) provide a range of housing options. These include independent living, assisted living, nursing and memory care to fit residents’ changing needs.
Varying fees
The cost of providing care and the potential payers vary depending upon the level of support. That’s why it’s important to understand a community’s pricing structure.
For example, some communities charge nonrefundable entrance fees, while others charge refundable fees or no fee at all.
One of the biggest spending shocks facing a retired household is the need for ongoing long-term care.
“Your health needs will change as you get older. And as your needs change, the fees associated with providing different levels of care will change as well,” says Tom Rotz, executive director at The Kenwood by Senior Star. “You never want to move into a community where you’re reaching the ceiling of your budget for the lowest level of care possible.”
He warns that moving from independent living to assisted living may come with steep fee increases. It’s important to understand how pricing changes with each option, even if you think you won’t need it down the line.
“Some communities have just three levels of care, while others have 10 or more and incrementally increase monthly charges with each new service offered,” Rotz notes. “Ask each community you visit about their pricing structure. It’s important to understand how your finances will be impacted by various offerings.
For more information on the cost of senior living, download The Kenwood by Senior Star’s Financial Guide to Senior Living. Our guide simplifies the many, challenging items to consider when making the decision to move into a senior living community.