A few weeks ago I published a blog post discussing why it can be smart to move to a continuing care retirement community (CCRC or life plan community) sooner rather than later. Moving earlier can make it easier to settle in, allow you to take advantage of wellness programs that support long-term health, and help you build relationships that provide a social and practical support network if health needs arise.
In that post I also described common reasons people delay a move: feeling too young, the challenge of downsizing and letting go of belongings, and concerns about long-term affordability and running out of money.
>> Related: 5 Reasons to Make Your CCRC Move Sooner Than Later
A real-world experience
I received an insightful email from a resident of University Retirement Community–Davis (URC) in California, whom I’ll call Sarah. She agreed that many delay their move for the reasons I listed, and added another common worry: the start of fixed costs when entering a CCRC, including the often sizable entry fee.
Sarah is correct that depending on the type of CCRC contract, moving into a community frequently involves a large entry payment and a predictable monthly fee. For some, that monthly charge can seem intimidating, and many people assume staying in their current home will be less expensive month-to-month.
However, Sarah and her husband found that many of their monthly expenses actually fell after the move. While this is one couple’s experience and results vary by household and community, her account highlights cost reductions that sometimes accompany community living.
For example, Sarah’s property insurance dropped significantly when they shifted from an expensive homeowner policy to a more modest renter’s policy. In many communities, residents are also relieved of personal property taxes that can be substantial in some states. Their monthly CCRC fee covers home maintenance and lawn care—services that either cost homeowners money or consume leisure time and energy.
Entertainment costs decreased as well. “There’s a shop and a crafts/sewing room,” Sarah said. “Free movies are shown, free concerts happen downstairs more often than we used to go in New Jersey, and URC celebrates holidays with glee and special decorations, and great brunches.” These on-site opportunities reduce the need for outside spending on entertainment.
>> Related: Crunch the Numbers: Staying in Your Home vs. Moving to a CCRC
Another cost-savings
Transportation costs nearly disappeared for Sarah and her husband. They haven’t needed to buy a car because the community has a shared vehicle and offers scheduled transportation. The facility provides rides to church and reasonable-price transport to medical appointments—options that cut costs for parking, gas, and the stress of driving. The community also organizes group trips to destinations like Yosemite and San Francisco.
In addition to using Davis city buses, which are free for seniors, URC offers communal bicycles and adult trikes with baskets. Residents often use these for grocery runs and to enjoy local bike paths, further reducing reliance on private vehicles.
Sarah summarizes their situation simply: “cost of new car, maintenance, gas, and insurance are currently zero.”
>> Related: “…but I love my home”: Is Staying in Your House the Right Move?
A price worth paying
While a CCRC’s monthly fee may look high at first glance, when you account for what is included, the total monthly cost can be reasonable. Sarah notes that the convenience and bundled services make the overall expense worthwhile.
Costs do vary by contract type, individual circumstances, and the offerings at each community. Most CCRCs require an entry fee—often offset by proceeds from selling a home—and some monthly expenses such as doctor visits, Medicare, and certain insurance premiums remain unchanged regardless of residence.
When comparing cost to value—the included services, amenities, and access to a continuum of care—many people reach the same conclusion as Sarah: living in a CCRC can provide substantial benefits that justify the expense.
Crunch your numbers
To evaluate the financial impact of staying in your home versus moving into a retirement community, you can use a “Monthly Cost Impact of Moving to a Retirement Community” worksheet that lists typical homeowner monthly expenses to fill in with your own numbers. Working through this worksheet alongside the communities you’re considering will give you a clearer side-by-side comparison. Often, the monthly difference is smaller than expected, and some people even find they save money.
Keep in mind that costs for assisted living or healthcare services are additional to basic monthly expenses in either setting. In CCRCs, certain care costs may be included in your monthly fee depending on the contract type.
Beyond the worksheet, there are interactive financial tools that project the long-term effects of moving to a CCRC, taking into account monthly expenses and the impact on savings and assets over time. If you use these tools, have community pricing and basic information such as your savings, investments, and income on hand to get the most accurate projection.