Choosing the right senior living community can be one of the most significant decisions you will face as you or your loved ones get older. But with nearly 31,000 senior living communities nationwide—and more being developed every day to accommodate our nation’s aging population—navigating today’s senior living options can feel overwhelming.
This guide, created in partnership with our friends at Silver Bridges Consulting, can help. We’ll break down the most common senior living options, their unique features and pricing structures, and what’s included in the cost of your senior living community. Let’s get started.
What Are Senior Living Communities?
Senior living communities are designed to support older adults in living fulfilling, comfortable, and engaging lives, regardless of their healthcare or daily support needs. These communities cater to a range of preferences and situations, from fully independent living to comprehensive medical care.
Why Consider Senior Living?
Senior living communities are about so much more than downsizing. They are designed to help you and your loved ones enjoy the next chapter of life in healthy and meaningful way.
- Fostering a Sense of Community: Isolation can lead to cognitive decline, while living in a community fosters social connections.
- Enhanced Safety and Support: Access to assistance and medical care when needed.
- Focus on Quality of Life: Opportunities for purposeful activities, hobbies, and physical wellness.
- Assurance for Families: Knowing loved ones are in a safe, supportive environment.
Two Types of Senior Living Communities
To meet the diverse needs of older adults, most senior living communities fall into one of two business models. In terms of amenities and lifestyle options, there’s a lot of overlap between the two (which we’ll discuss in the next section). The real difference is in the financial commitments that each model requires.
Continuing Care Retirement Communities (CCRCs)
Continuing Care Retirement Communities (CCRCs), also known as Life Plan Communities, follow a “campus” model, meaning they offer virtually every level of care—independent living, assisted living, memory care, skilled nursing—all on one campus. This enables you to age in place within the same community, transitioning between care levels as your needs change.
The long-term assurance that a CCRC offers comes at a price. CCRCs require a substantial one-time entrance fee, which can range from $200,000 to over $5 million, dependent on the floor plan you choose and the market you’re in.
You’ll also pay a monthly service fee which can vary between $3,000 and $6,000 per person, depending on the type of contract you choose. (CCRCs offer different contract options that range from higher-priced comprehensive-coverage contracts to lower-priced fee-for-service models.) Your contract will also dictate how much of your entrance fee is refundable should you leave; often you can get between 50% to 90% back upon move-out.
Although CCRCs are largely private pay, skilled nursing costs can be covered by Medicare if you require that level of care. Also, it’s worth noting you must be 62 years or older to qualify for entry into a CCRC.
Rental Communities
Rental communities are ideal for seniors looking for flexibility without the large upfront cost of a CCRC. Instead of a CCRC “entrance” fee, you’ll pay a lower (but non-refundable) one-time “community” fee—anywhere from $3,000 to $50,000.
Like CCRCs, you’ll also pay a monthly fee that can range from $4,000 to $12,000, depending on your apartment size and the community’s location. If you’re living with a spouse or partner, there is typically a second person fee of $1,000 – $2,500 per month as well.
You may also be charged additional fees depending on the level of care you require. The levels of care offered varies from rental community to rental community and can include independent living, assisted living, and memory care or a mix of these options. Because rental communities do not offer skilled nursing, the entire model is private pay. No Medicare or Medicaid is accepted.
What’s Typically Included in Your Senior Living Fees?
Housing & Housekeeping
Both CCRCs and rental communities offer a variety of floorplans to choose from, ranging from studio apartments to 3-bedroom homes. CCRCs tend to offer slightly bigger spaces, with apartments ranging from 800-2,600+ square feet, as opposed to 400-2,200+ square feet in rental communities. Most communities, regardless of type, are pet friendly. Housekeeping, linen/laundry, and trash removal services are typically included.
Access to Medical Care
Senior living communities usually have visiting primary care physicians and specialty care providers—including audiologists and dentists—to oversee residents’ care. Some CCRCs will even offer on-site physicians. Physical, occupational, and speech therapy are also usually offered on-site.
Meals
Your dining options depend on the level of care you receive. If you require assisted living or memory care, your fee will include 3 meals per day. Those in independent living are free to get meals on their own schedule, with meal plans ranging from 1-2 meals per day to 20-30 meals per month, depending on the community.
Amenities, Activities & Transportation
Amenities at CCRCs and rental communities are richer and more engaging than ever before. From onsite spas and pools to pickleball courts, putting greens, woodworking shops, and movie theaters, there’s no shortage of things to do. You’ll also find a robust schedule of daily coordinated activities, such as shopping trips, fitness programs, lectures and classes, and more. Most communities will even offer you free transportation within a 5-10 mile radius.
Understanding the Levels of Care
If you require assisted living or memory care, your monthly fee will also be determined by the care level assigned to you. Care level is determined by a nurse’s assessment. Each care level is a different rate. Every senior living community operator is free to decide how they will determine care level pricing.
Below is a general guideline, but keep in mind that levels of care vary by community and not all communities will offer five levels:
- Base: No care needed
- Level 1: Resident needs reminders/cueing
- Level 2: Resident needs stand-by assistance
- Level 3: Resident needs hands-on assistance of one caregiver
- Level 4: Resident needs hands-on assistance of two caregivers
In rental communities, be sure to ask what is and what is not included in your level of care coverage. Oftentimes, select services, such as medication management and continence management, will incur an additional cost.
When to Consider a Skilled Nursing Facility
Outside of CCRCs and rental communities, skilled nursing facilities are a third option to consider when you or a loved one requires a higher level of specialized medical care that’s not specifically memory care. Skilled nursing facilities may be right for your family if you need either short-term rehabilitation following a surgery or illness or long-term round-the-clock nursing care.
The cost of skilled nursing care averages $8,500 a month for a semi-private room to $10,000 a month for a private room. The good news is that Medicare covers skilled nursing expenses in many situations—usually for up to 100 days after an inpatient hospitalization.
Keep in mind that if you choose to go with a CCRC as your preferred senior living option, skilled nursing care will be included in the community’s services, so you will not need to go off-site for this type of care.
How to Decide on the Right Senior Living Option
The best thing you can do when it comes to evaluating your senior living options? Start now. Don’t wait for a crisis to find a solution. Be proactive and plan for the future you deserve. Here are some things to consider as you get started:
- Assess Your Needs: Do you require full independence or assistance with daily activities? Are there underlying medical or cognitive conditions to consider?
- Consider Your Budget: Factor in upfront fees, ongoing living expenses, and expected annual increases (typically 5-6%).
- Visit Multiple Communities: Tour potential communities to evaluate their environment, staff, and amenities. Ask about service quality, care levels, and state licensing inspections.
- Imagine Your Lifestyle: Reflect on your hobbies, social preferences, and goals for this phase of life.
- Consult an Advisor: Be sure to include your financial advisor in your senior living planning process. Senior living is a big investment no matter where you choose to go, and there are a wide variety of ways to fund your move without sacrificing your financial sense of confidence.
Navigate Your Next Move with Advent Partners
In partnership with Silver Bridges Consulting, we can help you understand your senior living options clearly and create a comprehensive plan that ensures you or your loved ones are ready for good. Schedule a planning meeting with us to get started.
Disclaimer
Silver Bridges Consulting is neither affiliated with nor endorsed by Thrivent Advisor Network and Advent Partners.
Thrivent Advisor Network and Advent Partners are not responsible for any particular individual’s or family’s experience when engaging with Silver Bridges Consulting services.