What Is a Continuing Care Retirement Community (CCRC)?
- Marc Lowe
- May 6
- 5 min read
Updated: 4 days ago
👉Considering senior care options for yourself or a loved one?
If you’ve come across the term Continuing Care Retirement Community or CCRC, you might be wondering what it actually means — and whether it’s the right fit for your family’s long-term care needs.
In this article, we’ll explain what a CCRC is, how it works, the levels of care offered, and the different types of contracts you might encounter. We’ll also explore the pros and cons to help you make an informed decision.
What Is a Continuing Care Retirement Community?
A Continuing Care Retirement Community (CCRC) otherwise known as Life Plan Plan Communities are a type of senior living community that offers a full range of care — from independent living to skilled nursing — all in one location. It's like a all included resort when you go on vacation. You have activities to keep you busy on or near the resort, meals cooked on site and the convenience of getting anything you may need on your trip. These are generally high-class communities that offer luxurious amenities. Oftentimes, they offer things like chef prepared meals, fitness classes on site and frequent community social activities.
CCRCs allow seniors to “age in place”, meaning they can continue living in the same community even as their health care needs change over time. These communities typically provide:
Independent and assisted living options
On-site healthcare services
24/7 medical staff access
This all-inclusive model makes CCRCs an appealing choice for those seeking long-term stability, convenience, and peace of mind. But, you have to be plan to pay for it because it can be pricey. Generally, CCRCs do not accept Medicaid and only accept either private pay or Long Term Care Insurance. Keep in mind, some of those older Long-Term Care policies from back in the day may not cover all of the costs of today. Planning is crucial to ensuring that this is something a retiree can afford. Having a CCRC as a goal in a retirement plan requires an understanding of the upfront costs and on going costs.
What Is the Purpose of a CCRC?
The main goal of a CCRC is to provide long-term security for residents and their families. Instead of relocating as needs evolve, residents remain in a familiar environment with access to:
Comprehensive medical care
Daily living support
Social and recreational activities
This continuity can ease stress for families while supporting a senior’s physical and emotional well-being.
How Do CCRCs Work?
CCRCs are designed to adapt to residents' needs as they age. A resident may start in independent living, move to assisted living as they require more help, and later transition to memory care or skilled nursing, all within the same community.
This seamless transition model reduces the emotional and logistical challenges that often come with moving between facilities.
What Levels of Care Are Offered?
CCRCs typically offer four tiers of care:
1. Independent Living
For healthy, active seniors who enjoy a low-maintenance lifestyle with access to amenities and social opportunities. (~4,500$ a month)
2. Assisted Living
Offers support with daily tasks such as bathing, dressing, and medication management, while encouraging independence.( ~8,000$ a month)
3. Memory Care
Specialized care for residents with Alzheimer’s, dementia, or cognitive impairments, often in secure environments with trained staff. (~11,000$ a month)
4. Skilled Nursing Care
Short- or long-term medical care including rehabilitation, wound care, and therapy services, provided by licensed professionals. (~500$ a day)
Understanding CCRC Contracts: 3 Common Types
When joining a CCRC, residents typically choose from one of three contract types:
Type A – Extensive Life-Care Contract
Higher upfront cost and monthly fee
$250,000+ per person entrance fee is common. Monthly Fees can be $4,500 - $12,000 a month depending on level of care
Covers nearly all future healthcare needs
The Entrance Fee goes towards ensuring all future healthcare needs are taken care of.
Predictable long-term costs
Type B – Modified Contract
Lower upfront costs
Entry fees for modified contracts will run between $80,000 to $750,000, and monthly rates will be between $1,500 to $2,500.
Covers some future care
Additional care may increase monthly fees
Type C – Fee-for-Service Contract
Lowest upfront fees
usually $100,000 to $500,000 for the entrance fee. Fee-For-Service monthly fees have the widest range: Residents pay market rates for higher levels of care, should they need them, so costs are not as predictable as in other CCRC contract types.
Pay-as-you-go for medical and assisted living services
Less predictable but potentially more flexible
When evaluating contracts, ask about fee increases, refund policies, services included, and what happens if care levels change for one or both partners.
Pros and Cons of Continuing Care Retirement Communities
✅ Pros:
Predictable long-term care costs (especially with Type A contracts)
One location for all stages of care
Social engagement and community life
Greater peace of mind for families
❌ Cons:
High initial entrance fees
Long contracts and waitlists
May not be ideal for seniors with immediate care needs
Alternatives to CCRCs
While CCRCs offer many benefits, they’re not the only senior care option. Consider these alternatives:
Aging at home with private caregiving services
Senior villages offering independent living with support
Assisted living communities that offer “aging in place” flexibility
Nursing homes or memory care facilities for more acute care needs
Each option comes with different financial, emotional, and lifestyle considerations — which is why it’s essential to find the right fit for your loved one’s specific situation.
Final Thoughts: Is a CCRC Right for Your Family?
Choosing a senior living option is a major life and financial decision. A CCRC can offer unmatched continuity, convenience, and peace of mind — but it isn’t a one-size-fits-all solution.
If you’re helping a loved one plan for long-term care and need help understanding the financial and lifestyle implications, we’re here to help.
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.
The information presented in this Presentation is the opinion of the author and does not reflect the views of any other person or entity unless specified. The information provided is believed to be reliable and obtained from reliable sources, but no liability is accepted for inaccuracies. The information provided is for informational purposes and should not be construed as advice. Advisory services offered through In The Money Retirement, an investment adviser registered with the state of Connecticut. The information linked to on third-party sites is being provided strictly as a courtesy and convenience. When you link to any of the web sites provided here, you are leaving this website. We make no representation as to the completeness or accuracy of information provided at these websites. When you access these websites, you are leaving our website and assume any and all responsibility and risk for use of the web sites you are visiting. The tax and estate planning information offered by the advisor is general in nature. It is provided for informational purposes only and should not be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation.
Comments