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Written by: Emma von Weise, CFP® | Focus Partners
Imagine a cruise with all of your friends. You get to see your friends all day, never have to cook, there’s always an activity, and you have full access to a gym, pool, and lots of other amenities. Eventually, though, you always have to go back home… and probably stop at the grocery store on the way.
But what if that was your home? That’s what a good retirement community can be and this is the picture we should be painting for the families we serve.
We Think of Retirement Communities as Places to Die
But, really, they’re places to LIVE!
When clients think of a retirement community, it’s probably not a positive image. They might picture someone with a walker going through the lobby, lots of bingo, and people sitting in dim rooms. A place to avoid, not something to get excited about.
But that image doesn’t reflect what these places can be. A good community can feel more like college without the homework. And as advisors, we’re often one of the only people in our clients’ lives with the trust and influence to help shift that mindset.
What Is a Retirtment Community?
When I say retirement community, I’m referring to a Continuing Care Retirement Community (CCRC). These communities offer graduated care. They usually include independent living, assisted living, skilled nursing, and memory care. Clients can truly age in place. These communities offer what’s called a ‘continuum of care,’ meaning residents can transition between levels of support as needed. This is usually built into their initial contract and pricing model, which varies by community.
The independent living sections are what most people get excited about. They don’t have to give up their independence or even their yard. Many communities even take pets. The floor plans can be spacious and highly customizable if clients want to pay for it. We’ve had clients change appliances, redo bathrooms, and even add a fence so their dog could go outside.
When you visit one, you might just see the older folks sitting in the lobby, but that’s because the younger ones are off living. They’re traveling together, taking exercise classes, sneaking drinks into the symphony, and playing Mahjong. They are living the kind of life most of us want right now.
Of course, not all communities offer this experience, some are more clinical, others more social. That’s why visiting multiple places and understanding your client’s values is key.
What Does This Have to Do With Money?
What is the point of having money if you aren’t healthy enough to enjoy it?
A retirement community provides the social and physical stimulation we all need to thrive in retirement. It’s a form of preventative care. Most people in their 70s and 80s are one fall and one poor recovery away from permanent mobility issues. In a couple, when one spouse starts declining, they pull the other down with them.
These communities support both people, so they can focus on enjoying their time together.
By having this form of preventative care, people spend less time in advanced care. Their quality of life is better for longer and they spend less time in costly advanced care.
We will talk about cost structure later, but retirement communities help even out cash flows and spread those costs over time. It makes care costs a lot more predictable, and some communities are set up so that if you run out of money, they can’t kick you out.
Our Roles as Advisors
As advisors, we’re often the only ones with both the trust and the full-picture perspective to start this conversation.
In our practice, some of our hardest client relationships are those trying to age in place longer than they should, holding onto independence even as things start to slip. It doesn’t come from a lack of planning, just a lack of awareness. If we don’t talk about these communities, they won’t know what they’re saying no to. These conversations truly have the power to change the trajectory of people’s lives.
This isn’t just about where someone lives. It’s about how they live. Not only do retirement communities add energy, connection, and support, but they subtract the mental load of maintaining a house and life for both the client, and their family that care for them.
When we help clients plan for aging now, it means they have choices later. It’s not just good financial planning, it’s a way to make sure their money keeps supporting the life they actually want.
When's the Right Time to Move?
The ideal time to move into a retirement community is when you start slowing down. That might mean you’re not seeing friends or family as much, cooking meals feels like a burden, or you’re starting to forget bills now and then. This often happens in the late 60s/70s.
The key is to go just before you’re ready. That way, you can build community, enjoy the amenities, and stay ahead of any health issues. If someone waits until they ‘need’ care, the move becomes stressful, reactive, and isolating. But if they move in while still independent, they build friendships, learn the layout, and ease into the community before their needs change.
There’s a strong negative connotation around “going to a home,” and by the time someone starts losing faculties, it can feel impossible to convince them that it’s time to leave their home.
That’s why we need to start these conversations early and bring them up often. If your client likes the idea of a retirement community when they’re 50, they’re much more likely to be open to it when they’re 75. We need to normalize these conversations.
Cost Structure
Costs vary wildly between type of community, area cost of living, amenities, and whether they include medical costs early or only as needed.
Here’s the high-level breakdown:
Many communities are either a combo of a lump sum “buy-in” and monthly fees, or no buy-in with higher monthly fees. Fees are generally split, one for general housing, and another depending on the level of care that you need, this will start low and increase as you need more support. The buy-in can vary widely from a hundred thousand to over a million, but often falling in the middle.
Example #1: A great Kansas City CCRC requires an average of $350,000 buy-in for an apartment, with monthly fees around $3,500 for housing and care costs ranging from an additional $2,000 - $10,000/month.
Example #2: A less nice, but still good Kansas City CCRC requires an average of $100,000 buy-in for an apartment, with a monthly fee at around $4,000 for housing and care costs start at $400/month and go up to $2k.
Example #3: A good Seattle CCRC has no buy-in. A studio unit is $6,300/month. Care starts around $1,000/month and can go up to $10,000/month for 24/7 support.
Additional notes on the buy-in:
- Many communities allow 1–3 months to sell your home after moving in to pay the buy in.
- Buy-ins often include a contract clause that prevents eviction if you outlive your assets.
- Some contracts refund 50%–90% of the buy-in to your estate or if you leave.
Availability and Planning Ahead
I know what you’re thinking…. Sign me up right now! Unfortunately, there is an age minimum. But for the lucky ones that are ready to move into the happiest place on earth, you better get your name on the list soon, because spots are filling up quick!
There really is urgency here. It’s getting harder and harder to get into good communities. Waitlists are often months or even years long. Many people can’t get into memory care units unless they’re already living in the community, because those beds are saved for current residents.
That’s why we encourage clients to join waitlists early. Deposits to join the waitlist vary, but are generally small, and in most cases, fully refundable. It simply holds your place in line. When the right unit opens up, the community calls. If you aren’t ready, you just stay on the list until the next one becomes available.
More than limited occupancy, getting on one or two waitlists now gives people control over their future. They don’t have to make a quick decision in an emergency and have autonomy.
A Story That Stuck With Me
Someone recently shared a story about their mom. Before she moved into a retirement community, she was having a hard time living alone. Every time a big winter storm was coming, she would call her kids in a panic, making sure someone would check on her, bring her food, and keep her safe.
This past winter, a storm rolled in. They called to check on her… and she didn’t answer. After calling the office, they discovered she was playing Mahjong with her friends. No panic. No fear. Just living her life.
She had community. She had support. She had peace of mind.
After talking with many people who live in these communities, every single one of them said their biggest regret was not moving in sooner. It has truly changed their lives.
Let’s help our clients see that. Let’s encourage them to plan ahead, not just with their money, but with their quality of life.
Related: Generational Wealth Starts Here: 3 Stories That Will Change How You Think