The Ritz-Carlton of Retirement
- Marc Lowe
- Oct 3
- 3 min read
Are you starting to explore senior living options for yourself or a loved one? One term you might come across is a Continuing Care Retirement Community (CCRC) — sometimes called a life plan community. These unique communities are designed to support older adults as their needs change, providing both independence and peace of mind in one place.
What Is a CCRC?
Imagine a luxury, all-inclusive resort — but built for retirement. That’s essentially what a CCRC is. Residents can move in while they’re healthy and independent, and as they age or their healthcare needs evolve, they can seamlessly transition to more supportive levels of care without leaving the community.
A single campus may offer:
Independent living – private residences and active community life
Assisted living – help with daily activities when needed
Skilled nursing or memory care – higher-level medical and personal support
This continuity allows residents to stay in a familiar environment, surrounded by friends and staff they know, instead of relocating as their needs change.
Understanding the Three Main Types of CCRC Contracts
Not all CCRCs are structured the same way. Before committing, it’s important to understand how costs are handled. Most communities offer one of these three contract types:
Extensive Life Care (Life Plan) Contracts
Higher upfront cost, but most future healthcare needs are covered.
Offers maximum predictability and peace of mind.
Modified Contracts
Lower entry fees than life plan contracts.
You’ll pay more as your care level increases.
Fee-for-Service Contracts
Lowest initial cost, but you pay market rates for care as needed.
Offers flexibility, but costs can become unpredictable.
Many CCRCs only offer the extensive life care model — a comprehensive approach where, once you pay that higher entry fee, you’re covered for life.
Pros and Cons to Consider
Benefits:
Stability and a “home for life” regardless of changing care needs
Convenience of having healthcare, housing, and social life in one place
Peace of mind for both you and your family
Potential Drawbacks:
High upfront costs, often in the six-figure range
Medicaid is typically not accepted, so out-of-pocket planning is essential
Is a CCRC Right for Your Retirement Plan?
Deciding whether a CCRC fits into your financial and lifestyle goals depends on your health, longevity expectations, and long-term care plan. For some, it’s the perfect combination of independence and security. For others, alternative care strategies may make more financial sense.
If you’re exploring this option, and want to see if your plan can support this type of care, click the button below to schedule your free initial consultation.
About The Author
Marc Lowe is the Founder & President of In The Money Retirement Planning. He is a Certified Financial Planner and member of NAPFA National Association of Personal Financial Advisors, XY Planning Network & Fee-Only Network. He works with retirees and those approaching retirement. He has over a decade of experience helping these folks grow their net worth, organize their finances and build better lives for themselves and their families.
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