Continuing Care Retirement Community (CCRC): Complete Guide
Everything you need to know about CCRCs—costs, contract types, pros and cons, and how to choose the right community for your retirement.
Key Takeaways
- 1CCRCs offer independent living, assisted living, and nursing care on one campus
- 2Entrance fees range from $200,000 to over $1 million plus monthly fees
- 3Three main contract types: Life Care (Type A), Modified (Type B), Fee-for-Service (Type C)
- 4Life Care contracts cost more upfront but lock in future care costs
- 5Most entrance fees are partially refundable (50-90%) to your estate
- 6CCRCs provide "aging in place" without moving to new facilities
- 7Financial stability of the CCRC is critical—check accreditation and reserves
What Is a Continuing Care Retirement Community?
A CCRC (also called a Life Care Community) is a retirement community that offers multiple levels of care on one campus—independent living, assisted living, and skilled nursing. The key advantage: you can transition between care levels without leaving the community.
- **One campus**: All care levels in the same location
- **Continuum of care**: Move between levels as needs change
- **Entrance fee model**: Large upfront payment plus monthly fees
- **Contract commitment**: Legally binding agreement for care
- **Community amenities**: Dining, fitness, activities, transportation
- **Also called**: Life Care Communities, Continuing Care Communities
Who Are CCRCs For?
CCRCs are designed for healthy, independent seniors (typically 65+) who want to plan ahead for future care needs. Most residents enter while still active and able to live independently.
How CCRCs Work
The CCRC model is unique in the senior living world. Here's the basic structure:
- 1You pay a large entrance fee (refundable or partially refundable)
- 2You pay monthly fees for housing, meals, and services
- 3You start in independent living (apartment or cottage)
- 4As health needs change, you move to assisted living on campus
- 5If skilled nursing is needed, you move to the nursing care unit
- 6Your monthly fees may increase as you need more care (depends on contract)
- 7When you pass away, a portion of entrance fee returns to your estate (if refundable contract)
Aging in Place
The biggest advantage of a CCRC is "aging in place"—you and your spouse stay in the same community even as care needs change. This provides stability and peace of mind.
Types of Care Offered
CCRCs provide a full spectrum of care:
- Transition between levels as needs change
- Typically no need to move off-campus
- Spouse can stay in independent living if still healthy
| Care Level | Description | Who It's For |
|---|---|---|
| Independent Living | Apartments/cottages with dining, activities, housekeeping | Active, self-sufficient seniors |
| Assisted Living | Help with bathing, dressing, medication management | Seniors needing daily assistance |
| Memory Care | Secure unit for dementia/Alzheimer's care | Those with cognitive impairment |
| Skilled Nursing | 24/7 medical care, rehabilitation, end-of-life care | Seniors with serious medical needs |
Exploring your retirement options?
Our 60-second quiz matches you with the right account type
CCRC Costs: What to Expect
CCRCs are one of the most expensive senior living options upfront, but may save money long-term if you need extensive care.
| Cost Type | Typical Range | Notes |
|---|---|---|
| Entrance fee | $200,000-$1,000,000+ | Varies by location, unit size, contract type |
| Monthly fee (independent) | $2,500-$6,000 | Covers housing, meals, amenities |
| Monthly fee (assisted) | $4,000-$8,000 | Depends on contract type |
| Monthly fee (nursing) | $6,000-$12,000 | Depends on contract type |
| Second person fee | +$500-$1,500/month | If spouse also lives there |
Entrance Fee vs. Refundability
Most CCRCs offer refundable or partially refundable entrance fees. A 90% refundable contract costs MORE upfront but returns most money to your estate. A non-refundable contract costs LESS upfront but you lose the entire fee.
CCRC Contract Types: A, B, and C
There are three main contract types. Understanding them is critical to choosing the right CCRC.
- **Type A (Life Care)**: Highest entrance fee, but monthly fees stay relatively stable even if you need nursing care. Best for long-term care risk.
- **Type B (Modified)**: Moderate entrance fee, monthly fees increase when you move to assisted or nursing. Covers some days/months of care at no extra charge.
- **Type C (Fee-for-Service)**: Lowest entrance fee, but you pay market rates for assisted/nursing care. Best if you expect to stay independent long-term.
| Type | Name | Entrance Fee | Monthly Fee | Future Care Costs |
|---|---|---|---|---|
| Type A | Life Care / All-Inclusive | Highest | Moderate | No increase for higher care |
| Type B | Modified / Fee Adjusted | Medium | Low initially | Increases with care level |
| Type C | Fee-for-Service | Lowest | Low initially | Pay full market rate for care |
Which Contract Type Is Best?
Type A (Life Care) is best if you want predictability and expect to need future care. Type C (Fee-for-Service) is best if you're very healthy and want lower upfront costs. Type B is the middle ground.
Pros and Cons of CCRCs
CCRCs offer unique benefits but aren't right for everyone.
| Pros | Cons |
|---|---|
| Continuum of care on one campus | Very high entrance fees ($200k-$1M+) |
| Aging in place with your spouse | Monthly fees increase over time |
| Predictable costs (Type A contracts) | Strict financial requirements to qualify |
| Social community and amenities | Less flexibility—locked into one community |
| Priority access to nursing care | If CCRC fails financially, you could lose money |
| Maintenance-free lifestyle | Must be healthy to qualify initially |
| Peace of mind for future | Entry requirements (age, health, financial) |
How to Choose the Right CCRC
Selecting a CCRC is one of the biggest financial and lifestyle decisions you'll make. Here's what to evaluate:
- 1**Financial stability**: Check accreditation (CARF-CCAC), occupancy rates, and financial reserves. Ask for audited financial statements.
- 2**Location**: Is it near family? In a city you love? Climate you prefer?
- 3**Contract type**: Type A, B, or C? Refundable or non-refundable?
- 4**Monthly fees**: What's included? How often do they increase (check history)?
- 5**Care quality**: Visit the assisted living and nursing units. Talk to residents.
- 6**Amenities**: Dining options, fitness center, pool, activities, transportation?
- 7**Entry requirements**: Age, health assessment, financial minimums?
- 8**Waiting list**: How long until a unit is available?
- 9**Resident satisfaction**: Talk to current residents and families.
Red Flags
Avoid CCRCs with low occupancy (<80%), frequent fee increases (>5% annually), no accreditation, limited financial transparency, or many negative resident reviews.
Funding Your CCRC Entrance Fee
CCRC entrance fees can range from $200,000 to over $1 million, plus $2,500-$6,000 in monthly fees. This represents a massive commitment of retirement capital. Many seniors fund CCRCs by selling their home, but the entrance fee ties up liquid assets for years. Protecting the purchasing power of your remaining retirement savings is critical—especially as monthly fees increase with inflation over a 10-20+ year stay.
Protecting Assets for CCRC Costs
CCRCs require $200,000-$1M+ in entrance fees plus monthly costs that rise with inflation. Protecting your retirement portfolio is essential.
- Entrance fees tie up significant liquid capital
- Monthly fees increase 3-5% annually
- Remaining assets must last 10-20+ years
Frequently Asked Questions
1What is a continuing care retirement community (CCRC)?
A CCRC is a retirement community that offers independent living, assisted living, and skilled nursing care on one campus. Residents can transition between care levels as needs change, allowing them to "age in place" without moving to a new facility.
2How much does a CCRC cost?
CCRCs typically require an entrance fee of $200,000 to over $1 million plus monthly fees of $2,500-$6,000 for independent living. Costs vary by location, unit size, contract type, and refundability. Monthly fees increase if you move to higher care levels (depending on contract).
3What is the difference between Type A, Type B, and Type C CCRC contracts?
Type A (Life Care) has the highest entrance fee but monthly fees stay stable even if you need nursing care. Type B (Modified) has a moderate entrance fee and some coverage for future care. Type C (Fee-for-Service) has the lowest entrance fee but you pay market rates for assisted/nursing care.
4Are CCRC entrance fees refundable?
It depends on the contract. Most CCRCs offer partially refundable contracts (50-90% returned to your estate upon death or move-out). Fully refundable contracts cost more upfront but return most of the entrance fee. Non-refundable contracts cost less but you lose the entire fee.
5Is a CCRC worth the cost?
For healthy seniors who want long-term care security and the ability to age in place, CCRCs can provide peace of mind and potentially save money if extensive care is needed. However, the high upfront costs and monthly fees make them unaffordable for many. Consider your health, finances, and preferences carefully.
Related Articles
Helpful Guides
Ready to Protect Your Retirement?
Join thousands of Americans who have secured their savings with physical gold. Augusta Precious Metals makes the process simple.