As more people age and begin to explore their retirement living options, one question keeps coming up: Can you afford to live in a continuing care retirement community (CCRC)?
It’s a common concern for people who are potentially interested in living in these communities because the true cost of senior living often involves more than just an initial price quote.
“Senior living options have evolved to offer a range of care levels and services tailored to individual needs, budgets and preferences,” says Tammy Hemmingway, executive director at Brookdale Hawthorn Lakes, a community in Vernon Hills, Illinois. “It’s essential for each person to evaluate their required care level, desired activities and financial capacity to find a solution that fits their unique situation.”
With careful research and the right resources, which we have laid out in this guide, you can find CCRC options that fit your budget and lifestyle.
What Is a CCRC?
CCRCs, sometimes referred to as life plan communities, were established more than three decades ago to provide an environment for people who prefer to remain in one place as their health care needs change. These communities offer a wide spectrum of options, from independent and assisted living to memory care, short-term rehabilitation and skilled nursing services all in the same location. A major benefit of a CCRC is that if one spouse’s care needs change, both can continue to receive the right level of support while remaining close to each other.
At a CCRC, healthy seniors typically move into independent living apartments or cottages with full kitchens and one or two bedrooms. As their care requirements change, they have the option to transition seamlessly to assisted living or eventually to nursing care facilities on campus that provide round-the-clock medical care and assistance with daily activities, such as bathing, dressing, eating and getting around.
“One of the key factors in choosing a CCRC is how you’ll manage your future health care needs,” says Dee Pekruhn, director of life plan community services and policy at Washington, D.C.-based LeadingAge, an advocacy association for nonprofit providers, including CCRCs. “While no one has a crystal ball, it’s crucial to think about future health care costs and anticipate what your expenses will be down the line.”
[READ: When’s the Right Time to Move Into a Continuing Care Retirement Community?]
How Much Does a CCRC Cost on Average?
The cost of retirement communities will vary depending on health care needs, location, housing options and amenities. Many CCRCs offer the following pricing models:
— Monthly rental model: Residents may pay an upfront fee of $1,000 to $5,000 and then a monthly rental charge from $2,000 for a studio or a small one-bedroom to $6,000 for larger units with more space. Meals, housekeeping, transportation and more may be included in the monthly fee, but it’s important to double-check what’s included and excluded. On average, monthly rent for a CCRC (if you enter at the independent living level) was $3,747 at the end of 2024, according to the nonprofit National Investment Center for Seniors Housing & Care, known as NIC. By comparison, Genworth and CareScout’s Cost of Care Survey reports that the average cost of assisted living is $5,900 a month and a private nursing home room is $10,646 in 2024 (the most recent data available).
— Entrance-fee model: Requires an upfront payment that can range from $100,000 to more than $1 million, with the average entrance fee around $400,000, according to some estimates. The entrance fee is often paired with a monthly service fee. In many cases, part of the entrance fee may be refundable if the resident moves out or upon their death, depending on the community’s specific contract. Within the entrance-fee model, there are different types of contracts, including:
— Type A (life care contracts): Includes higher upfront fees but covers a wide range of services, including future care (such as assisted living or skilled nursing). This is the most expensive option, but it provides guaranteed care down the road when it’s needed. Monthly fees are adjusted each year by about 3% to 5% to account for inflation versus market rate, which might be significantly higher.
— Type B (modified contracts): This option requires a lower upfront fee but offers a limited amount of care services. Once the care limit is reached, additional fees will apply. While it includes many comprehensive services, similar to a Type A plan, some services will need to be paid for out of pocket. It also provides a few days of respite care, typically 10 to 20 days, allowing caregivers to temporarily place their spouse or loved one in a nursing home and giving them a break from their daily caregiving duties.
— Type C (fee-for-service contracts): This option has the lowest upfront cost but requires residents to pay full market rates for any care services that are needed in the future. It is closest to a rental arrangement, but the monthly fees are usually higher because of the lower down payment. This option also provides respite care.
| Contract Type | Upfront Cost Estimate | Care Coverage | Monthly Fees | Key Highlights |
| Type A — Life care contract | Highest | Includes a broad range of services, including future care, such as assisted living or skilled nursing | Adjusted annually (typically 3% to 5% for inflation), usually lower than market rates | Most comprehensive and predictable option; guarantees long-term care when needed |
| Type B — Modified contract | Moderate | Covers a limited amount of care; after you reach the limit, you’ll need to pay for additional care out of pocket | Lower than Type A initially but may increase with additional care needs | Balances cost and coverage; includes many services but some out-of-pocket expenses |
| Type C — Fee-for-service contract | Lowest | No prepaid care; residents pay full market rates for future care services | Generally higher monthly fees due to lower upfront payment | Most flexible and affordable upfront; closest to a rental model but least predictable over time |
— Entrance-fee model with refundable options: Many communities offer refundable entrance fees as part of their contract options. These refundable entrance fees vary depending on the community and the specific agreement you choose. Common types of refundable options:
— Partially refundable entrance fees: A portion of the entrance fee, typically ranging from 50% to 90%, is refunded when the resident moves out or passes away.
— Fully refundable entrance fees: In some CCRCs, residents may receive a 100% refund of the entrance fee upon vacating the community or after passing, though these contracts often come with higher upfront costs.
“Refundable entrance fees are often designed to offer peace of mind, ensuring that a portion of the initial payment is returned to the resident or their estate,” Pekruhn says. “However, the terms of these refunds, such as the timing and conditions, can vary significantly between communities.”
Misunderstandings can happen when it comes to how entrance fees are managed and protected. That’s why it’s essential to review the community’s audited financial statements to understand its financial stability. Consider hiring an accountant experienced with CCRCs to go over the financials and ensure you’re comfortable with both the community’s fiscal health and the terms for how funds are held and eventually returned to you or your estate.
“Many residents mistakenly believe their buy-in is held in escrow or insured like an FDIC account, without realizing there may be unsecured creditors behind secured lenders. Some assume that if there is a new owner in a bankruptcy sale that their repayments are protected in the proceedings, when in reality they could recover only pennies on the dollar,” says Luana Pinasco, president of the National Continuing Care Residents Association (NACCRA) in Washington, D.C.
[READ: A Checklist for Choosing the Best CCRC Facility]
Factors that Determine the Cost of a CCRC
In addition to upfront costs and monthly fees associated with a given CCRC, there are other factors that influence the total cost:
— Location: Whether the CCRC is located in the suburbs or the city will dictate the cost structure. In urban settings, the entrance fees and monthly costs are typically higher. Costs will also vary based on geographical location.
— Size of living space: The type of housing, whether it’s an apartment, villa or cottage with one or two bedrooms, will dictate costs.
— Level of care: Independent living is the least expensive option, while assisted living is pricier as it includes help with daily activities like bathing and medication management. Skilled nursing care and memory care are the most expensive due to the round-the-clock care provided.
— Amenities: Facilities with more extensive amenities, such as fitness centers, swimming pools, dining options, on-site medical care, social activities and transportation, tend to charge higher fees. Personalized services (e.g., concierge care, private duty aides) also add to the overall cost.
“Understanding these factors helps prospective residents better assess the long-term financial commitment required for a CCRC,” Pekruhn says.
[READ: Continuing Care Retirement Community vs. Independent Living]
What CCRC Costs Include and Exclude
The costs associated with CCRCs can vary widely depending on the type of contract, location and level of care needed. Here’s a breakdown of what is typically included and excluded in CCRC costs:
Included in CCRC Costs:
— Housing: Apartments, studios, cottages, private or semi-private rooms or other housing options are available depending on the level of care needed.
— Assisted living services: Residents get help with daily activities like bathing, dressing or mobility, if part of a contract for an assisted living facility.
— Routine medical services: Some CCRCs include convenient on-site clinics that provide basic care, medication support and other services — even if they’re still living independently.
— Housekeeping: Housekeeping services are provided, though the type and frequency of services will vary.
— Maintenance: Repair and upkeep of indoor and outdoor community buildings, apartments, kitchen appliances, heating/cooling systems and outdoor grounds and landscaping are typically included.
— Meals: CCRCs provide either full dining options or limited meal plans in independent living. Meals and snacks are provided in assisted living and nursing care centers. Some communities provide residents with a “credit” that they can use toward any meal they choose.
— Parking: One or two parking spots are sometimes available unless the CCRC is in an urban setting and pays garage fees. Some communities offer free EV charging, but others do not.
— Fitness facilities and classes: Access to fitness centers, pools and certain exercise classes are often included. Special fitness classes may cost extra.
— Security: These communities have gated access, security staff and emergency response systems in place.
— Social events and clubs: Organized social activities like clubs, hobbies, educational classes and entertainment are usually included. Trips and extended excursions are typically an extra expense.
— Transportation: Shuttle services may be provided for medical appointments, shopping and local excursions.
— Utilities: Water, electricity, heating, air conditioning and even basic cable are often included. Premium channels and streaming services are usually an added cost.
Excluded from CCRC costs:
— Extra meals or dining upgrades: Additional meals or special dietary plans may have added fees.
— Grooming: Salon or spa services are an added expense.
— Home health care: If residents need additional help at home, such as private nursing or in-home therapy, this may be an out-of-pocket expense. Some communities offer private duty home care provided by nurse aides or certified nursing assistants. The hourly rate may vary from $30 to $50 for help with medication management, meal planning and companionship.
— Nonrefundable entrance fees: Some contracts have nonrefundable or partially refundable entrance fees. Not all CCRCs return the full entrance fee upon a resident’s departure or passing.
— Off-site health care: Visits to specialists or nonaffiliated hospitals or doctors are typically the resident’s financial responsibility.
— Personal care items: Toiletries, laundry or in-room cleaning services beyond what is covered by basic housekeeping are not included.
— Rehabilitation therapy: Physical, occupational or speech therapy may not be included and might require additional fees, depending on what Medicare deems medically necessary.
— Skilled nursing care: This type of care is usually not included in independent living but is usually provided in assisted living and nursing homes.
Does Medicare Cover CCRC costs?
Many people are surprised to learn that Medicare does not cover long-term care costs. The exception is when someone qualifies for rehabilitation after a three-night hospital stay and requires short-term nursing or rehabilitation care to recover and regain strength to move home. Although your plan may not cover long-term care, it may be able to help pay for certain medical services within a CCRC, such as physical therapy, vaccinations, on-site doctor visits, medical supplies or prescription medications.
How to pay for CCRC costs
There are several ways to pay for CCRCs, each with its own implications and pros and cons. Here are some common ways to pay for the entrance fees and monthly costs of moving into a CCRC.
Saving for retirement can be challenging with ongoing mortgage payments, car loans and various other bills to pay every month. However, even modest savings over the years can build into a substantial retirement fund, potentially covering the upfront costs of CCRCs and giving you more options to choose from.
Financing
Financing options may include personal loans or home equity loans to cover CCRC costs. However, these options may involve high interest rates and fees to the bank or lending institution and should be considered carefully.
Medicaid
Medicaid does not cover the cost of monthly rental fees for independent and assisted living communities. However, Medicaid can help cover the costs of long-term care needs, such as nursing care, once a person becomes eligible based on income. Medicaid covers the costs for over 60% of nursing home residents, making it the largest single payer of long-term care in the United States. Many communities set aside a certain number of beds in nursing care for Medicaid-eligible individuals. Reach out directly to the community to learn if they accept Medicaid payments.
Long-term care insurance
People who are exploring aging-in-place options such as CCRCs must first determine what the community’s policies will cover and what they will not. People who have long-term care insurance need to be aware that this type of insurance typically does not cover or assist with the independent living portion of CCRCs.
“If the CCRC also offers advanced levels of living and care, then the long-term care insurance benefits can assist with funding those options when and if they are needed,” says Lance A. Slatton, a Livonia, Michigan-based certified senior care manager and founder of All Home Care Matters YouTube show and podcast.
Private health or life insurance
Private health insurance or employer-provided health care does not cover the cost of CCRCs, including assisted living and memory or nursing care. However, life insurance policies can assist with covering part or all of the cost of CCRCs. Some policies can be converted into a lump sum that can be used to pay for the entry fees of CCRCs or ongoing monthly costs.
“Some life insurance policies offer a cash value component that can be accessed while the policyholder is alive. The proceeds from the loan are nontaxable,” Slatton adds. “Like any insurance policy, it is important to understand coverages and options before making any financial decisions and commitments.”
Veterans’ benefits
Those who are veterans should look into what coverage they may be eligible for under their veteran’s benefits. Eligible veterans and their spouses may qualify for the VA Aid and Attendance benefit, which provides financial assistance to help cover the cost of care in CCRCs, particularly for assisted living and nursing home care. For more information on benefits and eligibility, contact the U.S. Department of Veterans Affairs at 800-698-2411.
Social programs (Social Security Disability Insurance and PACE)
— Social Security Disability Insurance (SSDI): This program alone typically cannot cover the full cost of a CCRC, as the monthly benefits are generally not enough to pay for high entrance fees and monthly living expenses. However, SSDI benefits can help supplement income to partially cover ongoing monthly fees, depending on the cost of the CCRC and the individual’s total financial situation.
— The Program of All-Inclusive Care for the Elderly (PACE): PACE is a Medicare and Medicaid program designed to help seniors receive comprehensive health care services in their community rather than in a nursing home. PACE provides a wide range of care, including primary care, prescription drugs, home care, therapy and transportation, with a dedicated team of health care professionals coordinating each participant’s care. To qualify, individuals must be 55 or older, live in a PACE service area, need a nursing home level of care and be able to live safely with PACE support. Costs vary based on eligibility for Medicare and Medicaid, with Medicaid recipients potentially paying a $0 premium for long-term care services.
Personal Assets (Pensions, Annuities, Investments, Real Estate)
To cover the entrance fee and monthly costs of a CCRC, many people use their personal savings, including:
— Pensions
— Retirement accounts, such as IRAs and 401(k)s
— Stock and bond investments to cover the entrance fee and monthly costs.
For some people, their homes represent their largest asset, so selling their home is a common way to finance the upfront costs of living in a CCRC.
Budgeting for a CCRC
While aging in place may seem like a simpler choice in the short term, the financial landscape can shift dramatically if you end up needing higher levels of care later on.
Figuring out how to pay for a CCRC involves setting financial goals early on, creating a retirement budget that accounts for housing, health care, food and entertainment as well as discretionary spending for travel and hobbies.
When deciding on how much you can afford, factor in that there are annual cost increases that, over a few years, can significantly increase your monthly fees.
“Don’t just rely on what the CCRC’s representative says. Ask for the rent increases for the past five years minimal or since the community opened. One really has to understand how these annual increases compound year after year,” Pinasco advises. “In my community over the past five years, our increases have ranged from 3.5% to 7.5%.”
Tips for Retirement Planning
— Establish retirement goals: Estimate how much money you will need based on your desired lifestyle, health care costs and inflation. Consider factors like housing, travel and hobbies.
— Maximize contributions to retirement accounts: Contribute to a 401(k), especially if your employer offers a matching contribution, and put money into a traditional IRA or Roth IRA, which offer tax advantages. Roth IRAs are funded with after-tax dollars, but withdrawals in retirement are tax-free.
— Build up investments: Put savings into a diversified portfolio with stocks and bonds to manage risk. Adjust the balance based on your risk tolerance as you get closer to retirement.
— Estimate health care costs: Health care expenses can be substantial in retirement, especially if long-term care is required. Consider purchasing long-term care insurance or building a health care fund.
— Plan for Social Security: Know when to start claiming Social Security benefits. Delaying benefits until age 70 increases monthly payments, but you can begin as early as age 62 with reduced benefits.
— Lower debt before retirement: Pay off high-interest debt like credit cards or personal or home equity loans. Being debt-free in retirement provides more flexibility in choosing different types of communities with additional amenities.
“Planning ahead for housing needs as a senior can be challenging because it’s difficult to predict future health care needs, which will directly influence the type of housing required,” Pekruhn says. “Consider talking to a financial advisor about the best way to afford moving to a CCRC that includes the services, amenities and health care coverage that you may need down the road.”
More from U.S. News
How to Set Up Your Home for Aging in Place
How to Prepare for End of Life: Medical Care and Planning
Important Questions to Ask Your Aging Parents
How Much Do CCRCs Cost? originally appeared on usnews.com
Update 10/09/25: This story was previously published at an earlier date and has been updated with new information.
