Will you be celebrating your 65th by 2027? You are one of almost 4.1 million Americans who will hit this milestone every year from 2024 to 2027. According to Protected Lifetime Income, it represents the largest surge of retirement-age citizens in American history.
It’s a significant event that probably has you thinking about retirement options that will positively impact your quality of life. Staying active and healthy, establishing a routine, and maintaining a strong social life can help you achieve this. Why not consider a senior living community?
There are different types of communities, and the senior living contracts they offer may vary. Understanding them will help you make an informed decision. Read on for questions to ask before signing on the dotted line.
Types of Senior Living Contracts: An Overview
When discussing senior living contracts, it’s important to note the difference between independent living communities and Continuing Care Retirement Communities (CCRCs).
Independent Living Communities
An independent living community caters to seniors who don’t need personal care assistance or medical services. Residents pay a single monthly fee that includes:
- Rent
- Meals
- On-site amenities
- Social activities
Residents can choose to hire third-party agencies to receive health services if needed.
Continuing Care Retirement Communities (CCRCs)
CCRCs offer various levels of on-site care. Residents can transition from one level to another if their needs change. However, this is dependent on the terms of their senior living contract. There are three main contract options and each has different costs and care implications:
- Type A: Life Care
- Type B: Modified
- Type C: Fee-for-Service
Type A: Life Care
Life care contracts require a one-time entrance fee or deposit and a flat monthly fee. Your monthly payment does not increase even if your care needs change in the future. You’ll have access to more intensive care such as assisted living, skilled nursing, or memory care.
Type B: Modified Life Care
Type B senior living contracts have upfront costs and a monthly fee that caters to future adjustments. You can enjoy lower costs if you don’t need care in the future.
If this changes, you can access healthcare services at no cost, for a set number of days. However, you’ll pay market rates if you still need senior care services beyond this period.
Type C: Fee-for-Service
You pay a minimal upfront entrance fee or none at all with a fee-for-service agreement. If you need additional services in the future, they will be available to you at current market rates.
Key Financial Questions
The Federal Reserve’s latest Survey of Consumer Finances (SCF) shows an average retirement savings of $87,000 among American adults. Your finances will affect your retirement living options. The following questions can help you determine a community’s financial requirements.
What Are the Monthly Fees?
Get a cost breakdown from your shortlisted communities. Schedule a meeting and ask questions based on your review, including what the monthly fees cover.
Are There Any Entrance Fees or Deposits?
If there is an entrance fee or deposit, find out how much it is. Clarify whether there is a refund policy if you leave the community early and the conditions for reimbursement.
How Often Do Fees Increase?
Some CCRCs address rate increases in their contracts. They may stipulate a yearly cost of living adjustment. Knowing this will allow you to calculate future costs and understand their implications.
Care and Services Provided
It’s natural to choose a community based on your current health and interests. However, it may be best to consider one with senior living options to facilitate any changes to your current circumstances.
Asking the following questions could make it easier to decide.
What Types of Care Are Available?
There are four main types of care available at senior living communities including:
- Independent Living
- Assisted Living
- Skilled Nursing
- Memory care
Each type provides different amenities and levels of care, if any.
What Services Are Included in the Contract?
Most communities focus on enhancing residents’ physical, emotional, and social health. Some CCRCs offer several care options, while others specialize in one area. Clarify which services are included in your contract based on what you need.
How Is Personal Care Managed?
Regardless of your needs, you should understand how the community manages residents’ care. Staff qualifications and caregiver-to-resident ratios can affect the level and quality of care you receive.
Community and Lifestyle Considerations
Studies conducted by the National Library of Medicine show that social interaction can enhance the quality of life for older adults. A community’s senior lifestyle amenities can help facilitate this. Ensure you’re choosing a community that provides the right balance.
What Amenities and Activities Are Offered?
Most communities provide a calendar of activities including scheduled events and wellness sessions. Some also offer additional amenities such as an on-site beauty salon or a media room. You’ll know if they can fulfill your holistic needs by reviewing a list of the amenities and activities offered.
If you have a pet, you should also find out if the community you’re interested in is pet-friendly.
What Is the Community Culture Like?
Despite amenities and activities, a community may not be the home away from home you imagined. Scheduling a tour will allow you to get a feel of the physical environment. It will also provide an opportunity to interact with current residents and get feedback to learn more about the community’s culture.
Legal and Contractual Considerations
If you decide an assisted living community is best for your needs, the legal terms in the contract may affect your rights as a resident. In addition to asking questions, an elder care attorney can provide legal advice and help you understand complex legal jargon.
Making the Right Choice: Questions to Ask About Senior Living
Transitioning to a senior living community is significant. You want to ensure you choose an environment that is the right fit for you. If you’re interested in one of the contract options offered by CCRCs, asking questions will help you make an informed decision.
Terra Bella Thornblade understands the importance of providing a warm and welcoming environment for its residents. Our attentive, compassionate staff will ensure your assisted living experience is an exceptional one. Schedule a tour so we can answer all your questions to help you make the right choice.
