Planning for where and how to live to meet the challenge of graceful aging requires some forethought. Fully considering this topic requires understanding Life Plan Communities (LPCs), otherwise known as Continuing Care Retirement Communities (CCRCs). This article provides Solo Agers, and others, with information to consider when assessing their LPC/CCRC options.
Amenities and Services
LPCs aren’t just about continuing care; rather, they are about enabling individuals to live life to the fullest each day no matter what stage of life you’re in. The word “plan” emphasizes the peace of mind that having continuing care and advanced wellness services can support aging gracefully.
LPCs are an inviting option for Solo Agers. Like many, they want to avoid burdening extended family or others in their lives. They also desire an environment with growth, opportunity, and the chance for vibrant wellness. There is wide variety in the LPC world when it comes to price, services, amenities, and benefits, so it is important for individuals to do their due diligence before committing to a venue.
Basic services and amenities most often include dining, housekeeping, transportation, and laundry options. Contracts typically also include utilities and maintenance.
Beyond these fundamentals, there are many options for wellness programs and amenity spaces. Choices range from education classes, art programs and group pool activities to fitness centers, community gardens, and wood-working shops. It’s helpful to compare a LPC’s wellness offerings to your hobbies, interests, and needs.
Health and Wellness Offerings
In addition to an array of lifestyle preferences, there are also considerable options for health care packages. LPCs readily acknowledge the challenges of aging and offer access to additional care services as one’s personal health situation evolves. Common services include independent living, assisted living, skilled nursing, and memory care. But not all LPCs provide all these offerings. When evaluating a LPC, it is important for Solo Agers to pay special attention to which options a particular community provides, as many will at some point require the services of one or more as they age.
It’s important to note that LPCs require residents to enter as healthy adults. If you are healthy now, you can search for and choose the best community for you.
Choosing an LPC on this timeframe allows you to move-in before you require care. This allows you ample opportunity to make friends, create community, and ease into the living situation while still knowing you have support in the future when and if your health picture shifts.
Community and Security
It is generally known that community living equates with greater life satisfaction, a greater sense of security and peace of mind, and the overall advantages of a consistent, stable community.
Living in an LPC means you do not need to deal with home maintenance or arranging for travel for typical shopping or social activities. This reduces stress and gives you more time and resources to enjoy interests, hobbies, and quality time with friends and loved ones. Some communities even include “benevolence clauses” in their contracts, which means a resident can stay put even if their money runs out, assuming they haven’t been financially irresponsible.
Costs
As great as this all sounds, understanding LPC living must include evaluating the crucial element of cost. As a rule, LPCs tend to be more expensive than other community living options. There is almost always a sizable entrance fee and significant ongoing monthly fees.
There is a wide range of costs among communities, and it’s prudent for anyone considering moving to an LPC to evaluate the cost relative to their personal financial circumstances.
It’s common for new community members to sell their primary residence to fund the entry fee, but you’ll still need to confirm that you can sustainably pay the ongoing monthly fees following move-in. You’ll also need to consider taxes and contract-related specifics. Consider working with a financial advisor who has expertise with Life Plan Communities and Continuing Care Retirement Communities. For example, our Solo Aging Support System helps Solo Agers assess their options and work the costs into their long-term financial planning.
Laws & Regulations
Only three states – California, Florida, and New York – regulate these LPCs. This regulation includes some assessment of whether a given community is financially solvent, guarantees that it is regularly inspected according to reasonable standards, whether it meets contract framework requirements, and whether the consumer is protected against potential payment schemes. If you are considering moving into a community in another state, it is incumbent on you to fully explore and vet these items yourself.
In California, two agencies, both under the Community Care Licensing Division (CCLD) of the California Department of Social Services, share responsibility for LPC regulation1:
- The Continuing Care Contracts Section (CCCS), and
- The Adult and Senior Care Program [CCLD\ASCP] (ASCP)
Getting Help with Research and Decision Making
Solo Agers face many challenges their life journey. It’s important to fully investigate the pros and cons for each available long-term living option. LPCs offer many benefits and can be a viable option to consider when creating a meaningful and secure experience later in life.
Our firm, Johnson Lyman Wealth Advisors, works with Solo Agers using a comprehensive Solo Aging Support System that we’ve created. This system came about after working with many Solo Agers over the years and fine-tuning the process. Part of this framework is to evaluate residential living options, which sometimes includes a Life Plan Community.
Our firm, Johnson Lyman Wealth Advisors, works with Solo Agers using a comprehensive Solo Aging Support System that we’ve created. This system came about after working with many Solo Agers over the years and fine-tuning the process. Part of this framework is to evaluate residential living options, which sometimes includes a Life Plan Community.
Schedule a call with us to discuss your concerns and how our Solo Aging Support System can help
References
1 Website: CDSS Programs | Community Care Licensing | Continuing Care | Laws and Regulations, 2022 California Department of Social Services.
Disclosure
This material was prepared by Johnson Lyman Wealth Advisors from information derived from sources believed to be accurate. This information should not be construed as investment, tax, or legal advice.
