Planning for Retirement
| Community News, News
John Knox Village of Central Florida is one of approximately 1,700 Continuing Care Retirement Communities in the United States. CCRCs, also known as Life Plan Communities are typically gated communities that feature a range of home styles from apartments to small homes. These communities also provide various levels of care for their residents such as assisted living, nursing home facilities, and rehabilitation centers, along with amenities such as fitness centers, pools, and a wide range of activities.
While many CCRCs are predominately single women, John Knox Village of Central Florida has an equal mix of married couples and singles.
For many, the decision to move to a Continuing Care/Life Plan Community is one of safety and security of not wanting to be a burden on family members as health care needs change as a resident ages.
Throughout the U.S., entrance fees for CCRCs can range from $100,000 to $900,000 depending on location and amenities. According to the NIC, the median entrance fee is around $300,000. Residents typically finance their entrance fees with the sale of their current home.
In addition to the entry fee, Life Plan Communities also come with Monthly Service Fees. These fees can vary based upon the contract type:
- Type A: Are the most expensive contract. Type A contracts require a high entry fee, but offer a stable monthly service fee, which can increase based on rising operating costs. The monthly fees typically include residential services, amenities, and health care. This is considered an all-inclusive option with predictable future expenses, regardless of healthcare needs that may arise.
- Type B: Often called Modified Life Care. These communities include housing and services and amenities. Just like at a Type A community, you’ll pay a one-time entrance fee (usually lower) and your monthly service fee. However, the care structure is vastly different as it only provides for a set menu of health services for a predefined time frame.
- Type C: Often referred to as Fee for Service. The Type C contract offers a lower entry fee, compared to other entry fee contracts, and covers some or all of the residential services and amenities available through Type A and B contracts. However, if assisted living or skilled nursing care is required, the resident’s monthly fee will increase to cover the full market rate for the cost of care.
When considering a move to a CCRC, you will want to do your research and study costs carefully. Some questions to ask when you meet with a Retirement Counselor might include:
- What are the upfront costs?
- What do I get with my monthly service fee?
- How much of my entrance fee is refundable?
- What are the costs of add-on services?
- What is your average monthly service fee increase for the last 5, 10, 15 years?
- What happens if I outlive my financial resources?
In person visits to communities are also essential. Factors to consider in a move to a community might include location, is it in a busy metropolitan environment or a relaxing suburban community? Do they have off-campus and on-campus organized activities? What are the meal options and food quality?
With this in mind, CCRCs are for those that are planners. Begin your search by calling (800) 344-4504 to speak with a John Knox Village Retirement Counselor.