| Today's economy has most over the age of 55 | | | | No meals, health care or transportation are provided. |
| worrying about their retirement nest egg, long term | | | | Home health care workers must be contracted |
| health care, social security viability, living longer and | | | | privately should a need arise (approx $32 per hour). |
| how they'll manage their lifestyle in the future. | | | | 2) Assisted living centers - provide a special |
| We'd like to believe we won't ever need to move | | | | combination of residential housing, personalized |
| into an assisted living community or skilled nursing | | | | supportive services and care; meal plans are available |
| center, however, the statistics are against us. | | | | and you pay-as-needed (approx. $35,628 per year). |
| According to the American Association of Homes and | | | | 3) Skilled nursing centers - provide complete 24-hour |
| Services for the Aging (AAHSA), after age 65, | | | | care for those unable to care for themselves at a |
| Americans have more than a 70% chance of needing | | | | cost of approx $77,745 per year. |
| some form of long-term care. The reality is that not | | | | 4) Continuing Care Retirement Communities (CCRCs) |
| all people age as gracefully as they would like -- | | | | - These communities usually target people age 62 |
| which can have significant financial consequences. | | | | and above and combine age-restricted housing, |
| Did you know there are approximately 2,200 | | | | assisted living, skilled nursing, transportation, |
| continuing care retirement communities (CCRCs) that | | | | maintenance, food, activities and a wide range of |
| provide affordable retirement living options for | | | | amenities. Residents must be able to live safely alone |
| seniors age 62-100 plus and are designed for those | | | | in their apartments when they move into the |
| who do not want to worry about outliving their | | | | community. CCRCs offer three types of contracts: |
| assets or costly long term nursing care down the | | | | Extensive contracts (Type A) offer life care |
| road? | | | | insurance to residents. Residents benefit from an |
| It's a 40 year old concept that was started by | | | | entrance fee and monthly maintenance fee which |
| faith-based, not-for-profit organizations with the | | | | may be partially tax deductible (up to 30-40%). The |
| mission to help seniors age gracefully. It's called a | | | | monthly fee does not increase if a higher level of |
| Type A life care contract, and it is offered by | | | | health care is needed, including assisted living and |
| not-for-profit continuing care retirement communities | | | | skilled nursing care, which normally is offered on the |
| (CCRCs) such as ACTS Retirement-Life Communities, | | | | CCRC campus. Type A contracts are the safest and |
| headquartered in Pennsylvania but with locations in six | | | | most affordable option, and are usually offered by |
| states. | | | | not-for-profit organizations where revenue is |
| "For people who are really worried about outliving | | | | reinvested into the communities for upgrades. Type |
| their money (and given the turbulent economy who's | | | | A contracts are an alternative to expensive long |
| not?), Type A is the best choice," said Margery | | | | term health insurance. |
| Schiller, a financial planner based in Florida. "It provides | | | | Modified contracts (Type B) typically require an |
| the most peace of mind because everything is | | | | entrance fee and a monthly maintenance fee. |
| included in the monthly fee. There are also significant | | | | Lifetime access to assisted living and skilled care is on |
| tax savings (30-40%) as the entrance and monthly | | | | a fee-for-service basis. The monthly service fee |
| fee may be tax deductible as a prepaid medical | | | | increases as levels of care increase. Residents may |
| expense." | | | | receive a discounted rate for the care and a |
| Many retirement communities offer modified life care | | | | specified number of days of long term nursing care |
| programs and pay-as-needed health care plans, but | | | | at no additional cost. |
| how does this benefit the average senior when | | | | Fee-for-service contracts (Type C or rental) may |
| prices continue to skyrocket and no one knows what | | | | initially offer a lower monthly service fee than with |
| services will be needed? The current senior housing | | | | other types of contracts, however, residents are |
| options available include: | | | | responsible for all costs of additional health care as |
| 1) Age-restricted housing - these communities are | | | | they are needed. No resident discount, benefits, or |
| often referred to as 'active adult' communities and | | | | any free long-term-care days are earned. Type B and |
| one partner must be age 55 or over to enter. These | | | | C fee-for-service contracts are usually offered by |
| communities may include single family homes, condos | | | | private for-profit providers. |
| or apartments with some outside maintenance done. | | | | |