Choosing a retirement community isn’t easy. Here’s what you need to know.
For Betty Vosskaemper, the question is when, not if, she’ll move to a retirement community like
She visited Pennswood, an 82-acre, Quaker-directed facility with 400 residents in
After lunch in one of Pennswood’s three dining rooms, she and her daughter peppered marketing director
Doone had already met that morning for nearly two hours with about 16 other prospective residents, some of whom said they were years away from an actual move. She understood that this is a huge decision, one that can feel a lot like picking a college. “Obviously, this is going to affect every aspect of your life,” she told the morning crew, who came well-prepared with questions about everything from which hospital residents go to in emergencies (
Some, like Vosskaemper, were sure that they wanted this kind of facility, if not necessarily Pennswood. Others, like Mary O’Neil, 92, who still lives independently but had a health scare last summer, were sold on the social activity but also want to leave some money to their children. “It’s a terrible decision to make, because you know it’s final,” said O’Neil, who has toured five facilities.
In her office later that day, Doone told Vosskaemper that residents can walk from Pennswood to
Vosskaemper felt good about what she had seen. Now a resident of a 55-and-up community, she’s ready to let someone else cook. She’s uncomfortable driving at night or coming home to a dark house.
A week later, she had seen four communities and was confused by fee schedules that made comparisons daunting. Some had higher deposits, but lower monthly fees. Rules for getting deposits back after a move or death varied. “It makes it very difficult,” she said. She could see that her heart and her “frugal nature” would have trouble agreeing, but she wants to decide by the end of the year.
“I’m glad I don’t need to make a decision in any sort of hurry,” she said.
Don’t wait for a crisis
Shopping for a retirement community is best undertaken long before a health crisis makes moving an emergency. As life decisions go, this kind of move is high on the stress scale: It likely requires leaving a bigger home, along with decades of memories, routines and belongings. There are big pluses -- grounds you don’t have to care for, lots of stimulation, help that’s easy to access -- but picking a new group of friends can be scary. Then there are the costs, which are high and highly variable.
“This is a multifaceted search with intellectual parts of it and deeply emotional aspects of it, and it’s necessary to take both things into account,” said
For guidance on questions shoppers often forget to ask, we talked to a nine experts, including representatives of nonprofit and for-profit care communities, residents’ associations, elder care attorneys, and a geriatric care manager.
As a starting point, they suggested some online resources, including the Pennsylvania Insurance Department’s introductory guide to retirement communities, known officially as Continuing Care Retirement Communities (CCRCs) or Life Plan communities.
The experts agreed that the social part of the decision -- finding a location and people you like -- is the easy part. They recommend making multiple visits at different times of day. Eat meals there, and stay overnight if you can. Talk to residents not recommended by management. Pay attention to the environment: Poor maintenance and grounds keeping may be a sign of tight budgets. Check out the exercise facilities. Consider whether you’d like the activities. Find out what role residents play in community decisions.
Money and health care are the hard part
The harder parts are the money and the financial health of the facility. You want it to be around and in good shape longer than you are. On her first tour, Vosskaemper did not look at Pennswood’s personal care or skilled nursing wings. She plans to on future visits, but some people never do. Experts said that’s a major mistake.
Health care is the “heart and soul of your investment,” said
While choosing a CCRC may feel like buying real estate, true CCRCs are really a form of long-term care insurance, experts said. That’s why they are regulated as insurance products.
Originally, most CCRCs had what are known as Type A contracts. Residents pay an entry fee and then monthly fees determined by the size of their apartment that rise with the cost of living. Those fees remain relatively stable as residents need higher levels of care. At Pennswood, for example, single-occupancy entrance fees range from
Increasingly, communities also offer fee-for-service options, with lower costs for independent living, but market rates for more care. At Pennswood, which has offered this option about two years, single-occupancy entrance fees range from
You have to be healthy when you move to independent living, so don’t wait too long. The communities will vet your health and assets. They don’t want your money to run out before you die.
You will be given a long, complicated contract. Read it, and have a lawyer and financial adviser review it. “The contract is king,” Pearson said. Also request an audit and ask about occupancy rates. Experts recommend an occupancy rate of 90 percent or better.
Here are some additional questions experts suggest asking:
What happens if my spouse needs assisted living before I do?
Who decides when I move to assisted living or the nursing facility?
Can I hire extra help in independent living?
How much of my deposit will be returned if I die or decide to move? Will the community hold the money until it finds someone to take my apartment?
If I have long-term care insurance, can I use it here?
Is there a doctor’s office in the community?
What is the average tenure of employees?
If I’m paying fee-for-service and run out of money, will you force me to move?
Is memory care provided at the personal care (assisted living) level or skilled-nursing level?
The
Experts consulted for this article were:
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