Most people have made a purchase they later regretted — an impractical pair of shoes, a pet that damaged the furniture, or a car that fell short of expectations. Buyer’s remorse can follow impulsive choices or decisions made without enough information.
Last week I received an email from a couple in their seventies that made me think about buyer’s remorse in the context of senior living. They asked whether I had known anyone who chose a continuing care retirement community (CCRC) and later regretted it. The couple had been comparing rental communities that offer some long-term care services with CCRCs (also called life plan communities) that provide a full continuum of care services to residents.
The plan was to choose a community and move in while still healthy. But a recent tour of one community on their list made them rethink that plan. During the visit they peeked into the on-site movie theater and saw residents watching a film at 3 o’clock in the afternoon. The couple described themselves as active and felt they were not ready to spend afternoons watching movies, doing arts and crafts, or playing cards.
I’ve heard similar stories from others considering CCRCs — a single impression from a tour that turns them off. In an earlier post I discussed how first impressions can shape attitudes about CCRCs and sometimes lead people to rule them out prematurely.
It’s worth noting that the residents in the theater may have moved to that community years earlier, when they were younger and active. For example, my own parents are in their early seventies, social and active, yet they enjoy an occasional matinee and my mother still plays bridge frequently. A community with a variety of activities will naturally attract residents with differing interests and energy levels.
Still, it’s understandable that such encounters raise doubts about whether a CCRC is the right choice.
>> Related: Are Preconceptions About Senior Living Communities Holding You Back?
If you do change your mind about a CCRC
Yes, I have heard of people who moved into a retirement community and later regretted it — in some cases they even moved out. These situations represent a small minority of CCRC residents, but they do occur.
Refund and cancellation terms vary by community and by contract. Most CCRCs require a small waiting-list deposit, then an initial portion of the entry fee (commonly 10 percent split into an 8 percent “acceptance deposit” and a 2 percent “acceptance fee”) when you decide to move in, with the remainder of the entry fee due when you take residence. After a specified occupancy period (often 90 days), refunds depend on the language of your individual contract.
The contract may include language such as:
“The Residence and Services Agreement shall be signed not later than 90 days after the applicant is accepted for admission to the reserved residence. The remainder of the applicable entry fee shall be paid at the time that the Agreement is signed. The date that the agreement is signed also constitutes the Date of Financial Responsibility for subsequent monthly service fees, and for commencing the 30-day Rescission Period.”
Note: The “Rescission Period” is the time following signing the agreement when the prospective resident has the right to terminate the contract.
Common refund scenarios include:
- Cancellation from the waiting list: The waiting-list deposit is often refundable, usually less an administrative fee.
- Cancellation during the admission process (not health-related): Portions of the entry fee already paid — including the 8 percent acceptance deposit — may be refundable, while the 2 percent acceptance fee is often forfeited.
- Cancellation during the rescission period: Prospects frequently can receive a full refund of entry fees paid, though the acceptance fee may be withheld.
- Cancellation during the trial period: The initial trial period (commonly the first 90 days of occupancy) often allows a resident to terminate the contract and receive a refund of the entry fee, minus the acceptance fee.
- Cancellation after rescission and trial periods: Refundable portions of the entry fee typically decline over time, for example by a set monthly percentage for a defined period (such as 2 percent per month over 50 months). Many CCRCs also offer refundable entry-fee contracts that return a portion of the fee regardless of how much time has passed. Be sure to understand the contract’s exact refund provisions.
>> Related: Explanation of Refundable Entry Fees
Preventing CCRC buyer’s remorse
Moving to a CCRC is a major decision and a significant financial commitment. It’s natural to want confidence that the choice will support the lifestyle you expect and avoid future regret.
Do thorough research and spend ample time on campus before deciding. Use community search tools to identify options, then visit your top choices multiple times at different hours of the day. Talk with current residents to learn about their experiences. If you have a specific apartment or villa in mind, observe the area at various times and dine in the community’s dining venues. If a social membership or short-term trial is available, use it to experience daily life firsthand. The more exposure you get to the community’s routines and amenities, the better informed your decision will be.
There are many resources to help you learn about CCRCs, including videos, commentaries, and research about communities across the country. Review the available resources to better understand contract terms, lifestyle options, and refund policies before committing.