There are more than 200,000 people in NH in their late 50s and older who are at or nearing retirement and facing the question of whether to stay in their current home or move to some kind of retirement community. But with hundreds of options, ranging from 55+ communities to continuing-care retirement communities, how do you choose?
1. Choose a Type of Community
There are three basic types of retirement communities:
1. 55+ communities where people own or rent their homes/mobile homes/condominiums. These generally include access to a clubhouse with activities, and lawn upkeep and general maintenance services;
2. Care facilities that offer a range of services from independent living to nursing care. Fees change with a resident's needs;
3. Continuing care retirement communities (CCRCs), where you must be 62 years old and qualify both medically and financially. A CCRC is an insurance product, and not real estate as you are not buying property, but upon joining, you will be taken care of for life.
2. Identify Your Interests
Retirement experts suggest people nearing retirement identify the activities that interest them. There are some communities that are more focused on intellectual activities and some that are a little more fun, says Elaine Warner, a senior living advisor in NH with A Place for Mom, a national organization that helps people identify retirement communities. Adds Amy Gaskin, also a NH senior-living advisor for A Place for Mom, You're there 24 hours a day, so you want to make sure the activities suit your needs. I think living in a retirement community is like living on a cruise ship that never leaves port.
There are also social considerations. Are you a social butterfly or do you enjoy your solitude? How much do you value your personal space?
In many communities meals are provided, as apartments don't come with kitchens, or they have minimal kitchens. Some have big communal kitchens that residents can use for family functions, get togethers and parties. That's a big obstacle for many people, Gaskin says. How big a place can I have and do I want it to have a kitchen or not?
There are also geographical considerations. For those who like traveling, some corporate-owned retirement communities will allow you to snowbird in one of their properties located in a warmer climate or spend a limited time in a different place, says Fay Doria, owner of Financial Guidance Associates Inc. of Dover. Fee structures for such arrangements vary by organization.
3. Take a Tour
When touring a retirement community, here are a few things to keep in mind:
Use your senses: Examine the community for cleanliness and ask how often housekeeping and maintenance are provided. Are residents who need help clean and well dressed? Eat a meal and ask to see some menus.
For communities with memory care facilities or residents with high levels of need, odors in one area indicate a recent incidence, while odors throughout suggest long response times, according to a handout from A Place for Mom.
Watch activities: Visit an activity to see if it is well attended and whether staff and residents seem happy, according to A Place for Mom. What activities are included and what costs extra? Are there outings to shopping or nearby attractions?
Dig deep: Ask about the staff/patient ratio and the turnover rate, says Paul Pignone of Boston Retirement Advisors LLC in Salem and Florida. Review 12 months of newsletters to get a feel for how the facility is operated.
Pignone also suggests asking how old the facility is and inquiring about safety features. Doria recommends asking about occupancy rates: If space is immediately available with no waiting list, unless it's brand new, you have to wonder.
Bring a friend or family member: Since many communities have complex legal contracts, it's helpful to have someone along when you visit to ask questions and help understand the terms, Doria says.
Compare: Look at three or four similar places, even if you know you may not be interested in all of them, Doria says. Compare monthly fees, activities, cleanliness, safety features, location and other aspects of the community.
4. Examine the Finances
Depending on what type of community you choose, the finances operate differently. Most 55-plus communities operate like a condo complex with monthly fees for grounds and maintenance, and a resident board governing those decisions. Care facilities that offer a range of services charge different rates based on the level of service (independent, assisted or nursing care living) while continuing care retirement communities (CCRC) charge an entrance fee and monthly fees, and refunds a portion of the entrance fee when a person leaves or dies based on the fee structure they selected. Below are some things to consider:
Understand the fees: CCRCs charge an entrance fee and a monthly fee, but care is promised for life. A portion of the monthly service fees is tax deductible as a medical expense, according to RiverWoods, a CCRC in Exeter, and a portion of some fees may be refundable based on the plan you choose. Entrance fees range from $10,000 to more than $500,000 and monthly fees range from $200 to $2,500, says Pignone.
Ask what percentage of the fees is refundable and under what circumstances (not the right fit, death, moving). Also ask whether monthly fees have increased in the last five years and by how much. Many CCRCs have a 90 percent refund option, says Doria, but you pay more for this.
Some senior communities offer different levels of service and provide more of a fee-for-service option. Ask how many meals and what activities and services are included in different plans, Pignone says.
People who choose this option should consider buying or keeping their long-term care insurance, says Doria, as prices for services rise when more care is needed. She says to ask about the costs to move to different levels of care.
Do a business analysis: Doria says if it is publicly traded or a nonprofit look at the financials to see if it is viable for the long-term. If it is private, ask as much as you can about their financial standing.
Decide your level of commitment: A CCRC is an insurance product and a life choice so be sure it's a good fit, Doria says. She says most people sell their homes and use most or all their assets to buy in. And typically, Doria says, they give up their long-term care insurance. Pignone adds, this decision is often irreversible so be sure one does their homework and due diligence.
Be frank about your finances: You don't want to get into a place you can't afford or be rejected from a place you wanted and could afford. You need to be up front and honest about your financial situation, Doria says.