What’s the value of predictability and peace of mind?

You’ve worked hard to save for your retirement, and deciding how to best protect your nest egg while continuing to live the life you want can be difficult, especially when life can be so unpredictable. While you might prefer to stay in your home, it can be a challenge to keep up with home maintenance and feel almost impossible to find reliable people you can trust to work around your house.

So it’s not surprising many seniors turn to the maintenance-free lifestyle of a senior living community. But with all the senior living options out there, how can you figure out which one is right for you? In my experience, the biggest question seniors have is how much does senior living cost? And when you compare Life Plan Communities with senior living entrance fees and monthly fees versus rental communities with just monthly fees, you may want to know what you’re getting for your money. To help, here are five questions to ask yourself as well as a brief overview of both community types.

Choosing your best option

The culture and friendliness of residents and staff vary from community to community. So while looking at the cost of senior living communities is important, you should also visit as many places as possible to see if they fit with what you want.

As you start your search, here are five questions to consider that can help you make the best decision:

1. What are your current and future needs? Consider the services and support you want now and in the future. Does the community have a continuum of care for seniors on-site, and how much does it cost? According to the U.S. Department of Health and Human Services, 70% of seniors 65+ will need some type of long-term care. A Genworth Cost of Care Survey conducted by CareScout® indicated that in our area, 2024 market rates for assisted living averaged $5,900/month, and a private room in skilled nursing costs $10,646/month.
2. What can you afford? Senior living communities have a monthly fee to cover meals, utilities and other expenses, so it’s a good idea to figure out what you can afford. (These are expenses you’ll probably have whether you live at home or in a community.)
3. Where do you want to live? Do you want to be near family and friends? Would you prefer to live near popular vacation destinations? Think about where you want to go, and remember, location can impact the cost of senior living.
4. Where can you do your research? Online is the easiest way to do research. Visit a community’s website and Facebook page. Are there online reviews? Once you narrow down your list, you can call and ask questions, request more information, or schedule a personal visit.
5. Who do you trust for advice? Asking friends, family and loved ones for advice is a good way to get a second opinion. If they have time, ask them to visit a community with you. They can help ensure you’re making the right choice.

Life Plan Communities

Life Plan Communities with Life Care, like Harrogate, require an entrance fee, but what does it cover, and is it a good idea? People who buy into a community through an entrance fee tend to be more invested in the culture and direction of where they live. At Harrogate, residents have a lot of input, which is why we offer a wide variety of services and amenities — like housekeeping, as well as indoor and outdoor maintenance — and a full calendar of fun activities, engaging clubs and educational opportunities.

If you’re healthy and active today, you’ll have the freedom and independence to do the things you love to do. And if you need a higher level of care in the future, you have guaranteed access to our continuum of care right on-site. So you won’t have to relocate to another community, and your monthly fee will remain about the same. While a portion of your nest egg is tied up in an entrance fee, at Harrogate we have several options to fit your budget, and a portion of your entrance fee is refundable to your or your estate.

Your monthly service fee also covers your utilities; provides you with delicious, chef-prepared dining options; gives you access to our fitness center and indoor pool; and much more. It’s also possible a portion of your monthly service fees are tax-deductible because you’re prepaying for your medical expenses. Talk with your tax adviser for all the details.

Rental communities

Not all senior living communities charge an entrance fee. Rental communities can have either a year-long lease or be month-to-month. While it does give you greater flexibility and control, you may not have access to higher levels of care, and if you do, you’ll be charged the market rates we discussed earlier on top of your monthly rent. Because rental communities only collect one fee, less money is typically spent offering services and amenities. Plus, your rent could also increase more quickly to produce additional revenue.

I hope you found this information useful and it answered the question of how much does senior living cost. At Harrogate, we have options to fit your budget that give you access to everything our community offers. If you’d like to learn more, give us a call at 732-385-5617 or use our contact form.

Explaining CCRC Contract Types: A Guide to Get You Started

A Continuing Care Retirement Community, or CCRC, is the exact same thing as a Life Plan Community. (Harrogate uses the term Life Plan Community.) But not all CCRCs (or Life Plan Communities) are created equal. Confused? Here’s a guide with detailed information to help you keep it all straight.

Throughout this article, you’ll see the more commonly recognized term, CCRC, when referring to communities. And to help you make sense of all the CCRC options available to you, here’s some of what we’ll cover: CCRC contract types, specifically what a CCRC Life Care contract is, and the fee structure of a CCRC. We’ll also discuss one of the benefits of choosing a CCRC — the entrance fee tax deduction.

CCRC CONTRACT TYPES.

There are several types of CCRCs and CCRC contract types out there – let’s break it down.

Type A, also referred to as Life Care:
At a Life Care community, you pay a one-time fee before you move in, which can offer refundability to you or your estate. After you move in, you also pay a monthly service fee, which we’ll explain a bit later. Type A contracts often ensure a few things: No matter what level of living you choose when you move to the community, you’ll usually have a home providing you unlimited priority access to all levels of care the community offers at predictable rates, for life. And generally, you’ll pay less for any care you need than you would on the open market. If you or your spouse need different levels of care, you’ll often pay just one monthly fee plus a nominal increase in the fee for your spouse.

Type B, often called a 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 and your monthly service fee. However, the care structure is vastly different.

As part of your entrance fee, you may receive care in one of two ways:

A limited number of free days of health care, with additional days billed at per diem market rates, or an ongoing, minimally discounted rate. However, if you and your spouse need different levels of care, you may end up paying two monthly service fees to cover those two different care levels.

Type C, also known as fee-for-service:
Housing and services are provided, and the entrance fee and monthly service fee tend to be lower than with the other two contract types. You may have access to care, but it will be charged at full market rates, which are typically significantly higher than a Type A or B contract. Also, if you live in independent living but need care on a short-term basis, you will be required to pay your monthly service fee for your independent living residence plus the costs of housing and the health care your spouse receives.

Rental:
Not all CCRCs require an entrance fee — rental communities operate more like a leasing agent, charging you rent by the month. Some rental communities may have year-long leases; others are literally month-to-month obligations. People who choose rentals may prefer both the flexibility and the fact their money isn’t tied up in an entrance fee. However, because they only collect one fee, fewer dollars are spent on services and more are spent on debt services and emergency capital improvements. The monthly service fee could also increase more quickly to produce additional revenue. And many rental contracts don’t provide you with priority access to health care services — so any available space on the health care side of the community can be given to someone outside the community, instead of to you when you need it most. And you’ll pay full market rates for that care just like a fee-for-service community. A rental community can be a CCRC or a stand-alone community with a single offering.

WHAT ARE ENTRANCE FEES?

An entrance fee is a one-time, upfront fee you pay to move into the independent living part of a senior living community. The amount of the entrance fee varies, depending on the size of the residence you choose, whether it will be just you or you and another person living in that residence, and the contract option you select. At a CCRC community requiring an entrance fee, you can expect multiple contract options offering varying levels of refundability to you or your estate. For example, at Harrogate, there are several contract options to select from that will guarantee you a refund.

Life Care entrance fee tax deduction:
The IRS recognizes that a Life Care contract is one where you’re prepaying medical expenses, meaning a good portion of your monthly fees are tax-deductible. And that’s true whether you receive health care services or not. Generally, regardless of which type of contract you choose, deductions are available. Because tax deductions change frequently, it’s best to talk with your tax professional for all the details.

WHAT ARE MONTHLY SERVICE FEES?
Monthly service fees are just what the name suggests: a fee you pay every month that covers the services and amenities package associated with living at the community. The amount you pay depends on the size of your residence, how many people live there, and the range of services and amenities available to you in your level of living: independent living, assisted living, memory care or skilled nursing.

Interestingly, according to this recent article from TheStreet.com, housing, not health care, was the number one expenditure for retirees over 65. Housing costs include mortgage (if you have one), property taxes, insurance, utility bills, maintenance and homeowner’s association fees – but at a senior living community, these are the types of expenses your monthly service fee pays for, along with so much more.

That “so much more” includes services such as:

• All maintenance, both inside and outside your home
• Regular housekeeping, which often includes flat linen service (at Harrogate, we provide this service weekly)
• Utilities – usually all except for internet and telephone
• Scheduled transportation to events, shopping, medical appointments
• On-site 24/7 security
• Emergency response system

As well as amenities, including:

• A dining plan with a variety of dining choices and chef-prepared meals
• Access to the community’s fitness offerings (Harrogate, for instance, has an indoor heated pool and fitness center with full-time instructor)
• Use of all common spaces (at Harrogate, those include an auditorium with regularly scheduled performances, bocce ball courts, outdoor gazebos, walking trails, card rooms, woodworking shop, garden and dog park).
• A full monthly calendar of outings, activities, events, etc.

The list of services and amenities goes on, but you only pay one bill each month.

HOW DOES THE ENTRANCE FEE REFUNDABILITY WORK?

At a CCRC, you don’t actually own your residence; however, most CCRC agreements stipulate that refunds will not be paid until your residence is “resold and reoccupied.” As with any big financial decision, read the contract thoroughly, and ask lots of questions to understand exactly what you’ll be getting back, and when.

COMMONLY ASKED QUESTIONS

Kevin Fletcher has answered countless questions during his tenure as Harrogate’s director of sales and marketing. Here are a few he hears most often, along with his answers:

Q: As a prospective resident, what should I look for when I visit a CCRC?
A: Look beyond what independent living offers you, and request a tour of the CCRC’s levels of care. Also, ask about the management and financial stability. Check out the activity calendars. When you can, stop to talk with actual residents. Be sure to ask about a community’s entrance fee options to get a clear picture of which one would best fit your needs and wants.

Q: Is now the right time to move into a community?
A: “All signs point to YES!” Ok, there’s no magic eight ball that tells you when it’s time to move. But many CCRC residents say they wish they’d moved five years sooner. That’s because they didn’t realize until they moved in that their quality of life would improve because of all the benefits their community offered — the remarkable dining, wellness opportunities, friendships, packed calendar of activities, amenities, resident-driven clubs, and on and on. Something else to consider: If you wait until you need health care, you may not qualify for a Life Care contract in independent living.

Q: How do I know which type CCRC is right for me?
A: That depends on your priorities. Do you prefer to pay a bit more so you’ve got a plan no matter what the future may bring? Then a Type A CCRC might be the best fit. Or maybe you’re comfortable with paying less upfront to accept more risk in the future. In that case, a Type C CCRC may be better.

Q: What are the differences between Fee For Service (FFS) and Life Care contracts?
A: Some CCRCs offer both FFS and Life Care contracts, while others may offer both Type A and Type B contracts. FFS entrance fees and monthly service fees tend to be lower because you are paying for fewer benefits, like advantageous health care rates. A CCRC that offers a Life Care contract helps protect your assets by controlling the cost of higher levels of care, if/when you need them. This allows you to better predict potential health care expenses. Life Care contracts are even more financially advantageous to couples. For the same basic monthly service fee, if one spouse needs nursing care, they can receive it for as long as needed in the community’s on-site health center while the other spouse stays in the apartment home. In a similar scenario at an FFS community, a couple will pay both the monthly service fee on their apartment home and the market rate for higher levels of care. This unplanned spike in monthly costs could empty a nest egg rapidly and unexpectedly. Plus, with a Life Care contract, you have an opportunity to take a tax deduction, which is something FFS contracts don’t offer.

OTHER QUESTIONS? WE’RE HERE TO HELP.

Got more questions about CCRC contracts? We’re ready to answer them! We work with seniors and their families every day, helping them find the right fit for their lifestyle and finances. Call one of our Life Care Consultants at (732) 942-5272, or send us your question using the Contact Us form, and we’ll help you navigate your senior living search.

Throughout Harrogate’s 30-year history, we’ve consistently achieved a 5-Star rating from the Centers for Medicare & Medicaid Services (CMS). Continue reading

Not sure how to find the right skilled nursing solution for you or your loved one? We’re here to help.

Finding a retirement community that matches your lifestyle and future health needs can be quite the challenge.

One of the most crucial retirement decisions is deciding where to retire, because not only will your retirement location have a big impact on you, it can have a big impact on your family and friends. There’s certainly no shortage of retirement options in New Jersey, but the temptation of a warmer climate like Florida is always there. Each individual or family ultimately makes these choices, but there are plenty of great reasons to retire right here in the Garden State and remain close to home.

Family is a big reason many seniors choose to stay in the Lakewood and Toms River area. On one hand, living at a community with Life Care, like Harrogate, offers the peace of mind of knowing everything – including skilled nursing, rehab and higher levels of care – is close by. On the other hand, putting a smart plan for your future health care in place also lets you focus on enjoying time with your family and grandchildren. Many seniors wouldn’t trade being around their loved ones for any tropical climate in the world.

Of course, family isn’t the only reason local seniors choose to remain close to home. There simply aren’t many parts of the country with as many intellectual and cultural attractions so close by. Ocean County offers a long list of fun and interesting activities. And Washington, D.C., New York City and Philadelphia alone offer more activities than most people could fit into a lifetime.

Due to the misconception that New Jersey has higher taxes than most states, it can often be overlooked as a retirement option.While local taxes are a legitimate point of discussion, seniors who’ve chosen to retire in a Life Care Community like Harrogate are usually surprised by the number of available tax breaks. A simple visit with your financial advisor or the finance department at most senior living communities will point you in the right direction.

Seniors who choose to retire close to family and friends are typically very happy with their decision. No matter what you decide to do, make sure you do your research, look at your priorities, have a heart-to-heart conversation with family, and choose the option that feels right and makes the most financial sense. Everyone has a unique idea of what retirement looks like, and New Jersey offers countless options to choose from.

To help you make a more informed decision, stop by Harrogate and pick up our helpful guide. We can help you get a better understanding of all your retirement options. You can also schedule a personal appointment by using our contact form.

The conversation about what your family should do if you ever find yourself in a situation where you can no longer care for yourself can be a difficult one. However, sitting down and actually having that conversation can make a challenging situation a little easier for those you love. Of course, there’s always a chance you won’t end up needing long-term care. But making these important preparations and decisions about your health can help preserve a higher quality of life should something happen and you require long-term care.

How to Plan for Long-term Care Costs

Some people are more likely to need long-term care than others. For instance, those with a family history of diseases, especially degenerative brain disorders such as Alzheimer’s, have a higher risk of developing the disease and, therefore, have a higher chance of needing an assisted living situation. When assessing your need for long-term care, ask yourself:

• What are your lifestyle choices like? Do your actions contribute to or hinder your overall health? Try to live a healthy lifestyle that reduces your risk of illness and injury. Eat well, exercise regularly, stay mentally active and avoid falls.
• Do you anticipate any issues with hereditary illnesses or conditions that could make it difficult for you to age in place?
• How close are you to retirement? Would your retirement budget be able to cover the costs of long-term care? If you think you’re at risk for needing long-term care and you aren’t financially prepared, it may be a good time to invest in long-term care insurance.

Paying for Long-term Care

Americans spend billions of dollars every year on long-term care for seniors and the terminally ill. These services may cost more than your average Lakewood, New Jersey, citizen can afford. If you end up needing assisted living, you may have to pay for it through various sources:

• Personal funds such as pensions, savings and income from stocks
• Medicare, Medicaid or your private insurance provider
• Veterans benefits
• Services through the Older Americans Act
• Long-term care savings programs or insurance

Types of Long-term Care

There are generally three kinds of long-term care:

• Skilled care designed to treat a medical condition all day, every day. A treatment plan is ordered by a doctor and then performed by skilled medical personnel, such as a registered nurse.
• Intermediate care involves intermittent nursing and rehabilitative care.
• Custodial care aims to assist with one’s activities of daily living, such as bathing, eating and dressing.

Not everyone needs intensive 24-hour care. There are also home health care options for those who need some supervision but not round-the-clock monitoring. This can be helpful for seniors who want to age in place but have mobility issues when it comes to making it to the doctor on a regular basis for things like respiratory therapy, checking blood sugar, cleaning and bandaging wounds, monitoring vitals, and who may need assistance with bathing or dressing.

If you live with a partner or family member, there’s also the option of adult day care. Adult day care is a place for seniors who need supervision

and medical attention during the day and working hours. These centers allow people to continue with their jobs to pay for medical care without having to worry about their loved one’s well-being while at work.

***

Talking about long-term care with those you love isn’t easy, but it’s very important. Determine your potential for needing long-term care, and make lifestyle changes that foster health and independence. Start saving now for long-term care costs, or invest in insurance that will protect you if needed. Finally, know your options when it comes to long-term care.

Author

June Duncan is the co-creator of Rise Up for Caregivers, which offers support for family members and friends who’ve taken on the responsibility of caring for their loved ones. She’s the author of the upcoming book, The Complete Guide to Caregiving: A Daily Companion for New Senior Caregivers.