If you reviewed the results of our recent consumer survey of more than 420 prospective residents of continuing care retirement communities (CCRCs or “life plan communities”), you already know one of the primary reasons people delay a move: concern about the community’s financial management. In the survey, worry about finances scored 32 percent higher than the next most cited concern, which was paying an entry fee.
A frequent question we hear at myLifeSite is, “How can I tell if a CCRC is financially sound?” It follows that if CCRCs could reassure prospects about their finances, they could improve sales and occupancy. Yet many communities do not proactively address this concern with prospective residents.
A topic residency counselors should emphasize
From my time as a financial advisor, I remember that when clients needed life insurance, we always provided a concise summary of the insurer’s financial strength. That one-page summary helped clients feel confident enough to move forward. The same principle applies to choosing a CCRC: people need reassurance that the community will be financially stable over time.
In conversations with staff and prospects, the financial topic often gets less attention than lifestyle, floorplans, wellness programs, and amenities. Those elements are important, but none of them matter if residents lack clarity—or, even worse, confidence—about the organization’s financial health.
>> Related: 6 Key Considerations for Your CCRC Decision Process
Boosting confidence in the community’s financial health
If I were a prospective resident, here’s what I would appreciate hearing from a sales or residency counselor near the end of the first meeting or during a follow-up visit:
“Mr. Breeding, at Serenity Now Retirement Community we recognize that choosing a CCRC is both a lifestyle and a financial decision. If you have questions about our financial management, we want to make sure they’re fully addressed.
In the meantime, here is a one-page summary about our history and track record, a clear breakdown of several key financial indicators we believe matter most, and a brief explanation of the state’s regulatory oversight for CCRCs. If you’d like, I can also connect you with a member of our residents’ council, which works closely with the board and includes people with solid financial experience.”
Hearing this would signal a transparent, professional organization that values resident involvement. That kind of proactive communication builds trust and can differentiate a CCRC from competitors.
Most states require communities to provide a disclosure statement that usually includes audited financial statements. However, these documents can be difficult for the average person to interpret. Even financial professionals who do not specialize in CCRCs may struggle, because CCRC accounting and actuarial practices are different from typical businesses.
>> Related: Crunch the Numbers: Staying in Your Home vs. Moving to a CCRC
Innocuous reasons for avoiding the issue
Why wouldn’t an organization be forthcoming about its finances? One common reason is that the residency counselor—the main contact for prospects—isn’t comfortable discussing financial topics. That’s understandable: many counselors don’t come from financial backgrounds, and the CCRC financial model can be complex. The solution is to involve an appropriate finance team member so prospects’ questions are answered accurately.
Another reason counselors sometimes avoid the subject is a concern that it will derail the sales conversation. They may fear it will distract prospects or delay decisions. While keeping conversations focused is important in sales, selling a CCRC is different from selling a typical product. Choosing a CCRC often represents a major life decision involving housing, healthcare, lifestyle, and finances. As such, transparency about finances is not an unnecessary distraction—it’s essential.
Residency counselors should recognize that giving prospects the information they need to feel confident will ultimately help the community’s own results. Trust and clear financial communication support better decision-making and, in turn, better occupancy outcomes.
>> Related: How Do I Know If a CCRC is Financially Viable?
When the numbers aren’t stellar
Another reason a community may be reluctant to share financial details is that the numbers are concerning. That may result from mismanagement, external market disruptions, or a combination of factors. Poor finances typically reflect low occupancy, which creates a difficult cycle: low occupancy damages finances, and weak finances make it harder to attract new residents.
Even if a new management team is working to improve results, lingering effects from past missteps can keep occupancy down. In such cases, withholding financial information can hinder the community’s ability to rebuild trust and attract new residents. Prospective residents deserve to know what recovery plans are in place, who is financially backing the community, and the timeline and milestones for improvement.
This situation underscores why strong financial management should be a top priority for every CCRC. Financial health has a direct impact on sales and the ability to raise occupancy, whether staff realize it or not.
>> Free Resource: Guide to Evaluating the Financial Viability of a CCRC
Money matters
CCRCs provide many older adults with an appealing combination of active living today and a plan for future care. But because moving into a CCRC often involves a long-term financial commitment, lack of confidence in a community’s finances can discourage even well-suited prospects. For many, this is one of the main barriers to choosing a life plan community.
Financial viability is a vital topic for anyone evaluating CCRCs. If a community seems reluctant to share financial data, dig deeper: the issue may be simply that the residency counselor lacks confidence in discussing finances, or it may point to bigger problems with financial management or occupancy. Either way, understanding the community’s financial standing is essential to making an informed decision about how a CCRC might affect your long-term security and well-being.