Before founding myLifeSite, I spent nearly 14 years in financial planning, helping many older adults manage retirement and long-term care finances. During that time I repeatedly saw how challenging senior living decisions can be—especially when evaluating continuing care retirement communities (CCRCs), also known as life plan communities. The contracts, fee structures, and future health-care costs make affordability analysis complex and often overwhelming.
Affordability means different things to different people. For some, it means protecting their principal so they never draw down assets. For others, it means having a high probability of maintaining financial security over their lifetime, even if tapping into savings becomes necessary. Regardless of the definition, assessing affordability for CCRCs requires careful consideration of residency contract types, trade-offs between current and future care costs, and the impact of an entry fee that may be partially refundable.
>> Related: A Primer on CCRC Residency Contracts
Hard numbers
Many prospective residents are hesitant to invest significant time researching CCRCs without a basic understanding of which communities are realistically within reach financially—not only now, but over the long term. Choosing a CCRC is often a multi-decade decision, and small differences in pricing or care assumptions can have big effects on lifetime affordability.
Because most life plan communities require a financial review as part of their admission process, some people worry about being turned away. That concern makes a preliminary, confidence-building financial snapshot especially useful before committing to a full qualification review with a community representative.
>> Video: CCRC Entrance Requirements
Although more CCRCs are publishing price information, it can still be hard to judge long-term affordability because of the many variables involved. Some communities may appear costly up front but prove more affordable over a lifetime if their on-site health-care services are priced below market rates. Conversely, a lower entry fee today can be offset by rising monthly fees or expensive future care.
A new solution to the CCRC cost equation
To help bridge this gap and give prospective residents a clear, preliminary affordability indication, myLifeSite developed MoneyGauge. This easy-to-use tool is available on participating CCRCs’ websites and offers a quick financial snapshot for people exploring a community.
MoneyGauge uses that community’s specific pricing and combines it with reasonable hypothetical assumptions—such as investment growth, inflation, and life expectancy—to estimate how affordable the community may be over time. It’s designed as a first look rather than a full qualification tool, so it doesn’t collect every detail a community would need to make an admission decision. Still, for anyone wanting to know if they’re “in the ballpark,” it’s a practical and fast starting point.
>> Related: Crunch the Numbers: Staying in Your Home vs. Moving to a CCRC
Accessing MoneyGauge
MoneyGauge launched a few months ago, and many CCRCs have already adopted it as an online resource for prospective residents. If you live in one of the regions below and are considering a participating community, visit that community’s website to generate your personal MoneyGauge assessment and get a clearer idea of financial fit.
- Kendal at Oberlin, Oberlin, OH
- Kendal at Granville, Granville, OH
- Kendal on Hudson, Sleepy Hollow, NY (coming soon)
- Kendal at Lexington, Lexington, VA (coming soon)
- Friendship Village, St. Louis, MO
- Cottage Grove Place, Cedar Rapids, IA
- Sagewood, Phoenix, AZ
- Timber Ridge, Issaquah, WA
- The Heritage at Brentwood, Brentwood, TN
- Broadview at Purchase College, Rye Brook, NY (coming soon)
- The Spires at Berry College, Rome, GA
- Concordia, Oklahoma City, OK (coming soon)
- Beatitudes Campus, Phoenix, AZ (coming soon)