Kelly Greene, who writes retirement-focused personal finance stories for The Wall Street Journal, recently reviewed some of the risks and benefits of an increasing trend among retired Americans.
Continuing-care retirement communities have become popular but should be viewed as an investment with risks. Greene outlines the pros, cons and costs.
In addition to the information presented, we think the following points are important:
1) Many older people move into continuing-care communities for additional benefits:
a. Built in social opportunities
b. No more maintenance on their residence
c. Reduced stress on kids or grandchildren to take care of parent/grandparent.
2) The article says that at least 745,000 older adults live in CCRCs. If, on average, each has 300 residents, that is nearly 2,500 of these facilities. The article doesn’t provide any figures about the percentage of all CCRCs that have gone bankrupt or gone out of business. Instead, it tells about four CCRCs that have filed for bankruptcy.
3) Her suggestions for researching the financial strength of a CCRC that you might be interested in living in are excellent.
Here’s a link to the print-friendly version of her article:
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