In a prior career, before founding myLifeSite, I worked as a financial advisor for nearly 14 years. Many of the older clients I advised were curious about the benefits of continuing care retirement communities (CCRCs), also known as life plan communities—particularly the on-site access to a continuum of care. Yet this senior-living option often complicates decision-making and financial planning because it involves multiple factors beyond a simple cost comparison.
To better serve clients, I studied the senior living industry and CCRCs in depth. Clients appreciated having a trustworthy, impartial resource to help them understand the questions to ask and to guide them through the decisions about where and how to live as they age.
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Searching for answers to the senior living question
Seniors and their families are often uncertain where to find objective guidance about senior living choices. The landscape can be confusing: “aging in place,” 55+ communities, CCRCs, assisted living and more. As a financial advisor, I was able to act as a neutral resource to help clients and their families talk through these options. One of the most common responses I heard was, “I’m so glad to talk with someone who can help us figure this out.”
>> Related: Why Every Retiree Should Consider a Retirement Community
Financial guidance without subjective views
By definition, a financial advisor should provide objective advice grounded in a client’s investments, income, and related finances. Advisors help determine the financial impact of decisions, but when it comes to senior living they should recognize that the least expensive option isn’t always the best one.
Too often there is a bias—whether conscious or not—toward recommending that clients remain in their homes because it appears less costly at first glance. Staying home may indeed be the best choice for many people, but advisors must acknowledge that senior-living decisions go beyond immediate costs. There are times when the financially optimal choice is clear, but other times when it is difficult to predict what will be best over the long term.
Two key points summarize this perspective:
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It’s difficult to say definitively that staying at home will be financially better.
Genworth reports that the current average cost of in-home care is roughly $4,000 per month, based on approximately 40 hours of care per week (about six hours per day). If a person requires more intensive care—especially 24-hour assistance—costs can rise substantially, potentially doubling or tripling the average. In such cases, remaining at home can become far more costly than other options.
Additional considerations include home modifications to improve safety and accessibility, and the potential burden on family caregivers. Even with adjustments, some individuals eventually need to move to a care facility when home living becomes impractical or unsafe. The uncertainty about future care needs makes planning more complex.
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The choice to move to a retirement community involves much more than cost.
Cost matters, but it should not be the only consideration. Affordability is obviously essential—retirement communities and CCRCs must fit within a client’s financial means—but social, health, and lifestyle factors are equally important. Even if staying at home ends up being cheaper, it may not be the healthiest or most holistic option for a person’s overall wellbeing.
Many older adults thrive in community settings that offer social opportunities, structured activities, and built-in healthcare support. For some, these elements significantly enhance quality of life and peace of mind in ways that go beyond a dollars-and-cents analysis.
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Financial feasibility requires necessary knowledge
Financial advisors can be invaluable in assessing a client’s ability to afford a move to a retirement community over the long term. To do that well, advisors must understand how pricing varies across senior living options—especially CCRCs and life plan communities. Pricing structures, entrance fees, monthly service fees, and how future care is billed can differ greatly from one community to another, and those details affect long-term affordability.
Advisors also need to recognize the deeply personal nature of senior living decisions. Practical needs, emotional preferences, social connections, health status, and family dynamics all influence the right choice for each individual. Advisors who wait for clients to raise the topic may miss a critical opportunity. Too often I’ve heard colleagues say, “I don’t discuss senior living because clients don’t bring it up.” That is precisely why advisors should initiate these conversations—otherwise, no one may address this planning need until it’s too late.
If you are a financial planner wanting to learn more about senior living options like CCRCs, myLifeSite offers a solid starting point. We provide numerous free educational resources and community profiles on CCRCs across the country to help advisors and families make informed decisions.