Navigating the Retirement Living Fork-in-the-Road

By Tim Carmichael, La Posada

If you are one of those retirees who believes your retirement planning stops at the magic age of 65… you better think again. Retirement planning involves far more than buying the big recreation vehicle, traveling the country for a few months each year, and stopping along the way to see the kids, grandkids and those few close friends from your fraternity days. This type of retirement lifestyle is short-lived and should be considered a part of your retirement activities, but it's far from a real retirement plan. Retirement planning today involves choices that were not available to your parents or grandparents, as they faced retirement age.

The choices are more complicated and include determining where to live, what type of lifestyle to lead, what services can I obtain, how long will my money last, and how not to become a burden on your own children as you age. The retirement living industry has evolved as these choices have become more important in the decision-making process you follow for determining what to do in your retirement years. Retirees have numerous choices from Mixed Generation Communities, like the city you probably live in today, to Age Restricted Communities, known today as an Active Adult Community. An Active Adult Community can focus on age categories, most of which are 55 years and older, while others are more concerned with amenities and lifestyle choices. Other types of retirement living choices include Naturally Occurring Retirement Communities, defined by the percentage of people who have, over time, settled into a defined area of a city, most of whom are age 70 and older. This type of community, bolstered by neighborhood committees, are enlisting their fellow neighbor to provide direct care and assistance.

Emerging as one of the choices to meet the retirement living needs of retirees is not a new concept or type at all, but one that has adapted its initial focus to take into account both services and lifestyle that are important for their resident population. Continuing Care Retirement Communities (CCRCs) provides an array of living environment choices and lifestyle related services to meet the needs of a changing senior retirement market. CCRCs adhere to a gerontological approach to aging, including programs and services that address aging, social support needs, daily living, spiritual support, and the basic service designed to make life enjoyable. Other lifestyle choices include whether the CCRC is located next to an ocean, golf courses, hiking areas, near an academic community or countless other aspects that are of interest to the generation of today and tomorrow.

CCRCs will provide a service package that will include a meal design, housekeeping services, transportation, case management support, activities and entertainment, as well as addressing the basic needs for aging successfully. Continuing care retirement communities are funded in numerous ways, most are influenced by the legal design, for profit, not-for-profit and the like. Most of the CCRCs have formed out of traditional affiliations with religious, fraternal, or professional organizations, but today the for-profit sectors are developing CCRC organizations that are hybrids of all of these. Depending on their affiliation and financial structures, most of the CCRCs will have a combination of entrance fees and monthly resident service fees to fund their operations. These fees will all vary by the amenities and by their market.

Selection of a CCRC can get complicated, but in general, it is important to remember that each continuing care retirement community is different. They all have a different mix of residents, their own personality—some are relaxed, while others are very formal, and they all have unique living environments and financial arrangements.

So, how do you navigate the retirement living fork-in-the road? You need to ask yourself a series of questions, all designed to focus your attention on lifestyle choices.   Through my years of working directly with residents and their families, I have compiled the dreaded 13 questions to ask.  I’ve listed them below. Please note, you may have multiple answers for each question. It's important just to get your thoughts down on paper!

What are my personal satisfaction indicators?

1. What location in the country, perhaps a city or regional area, do I want to live for the rest of my life? (It's okay to be selfish, here. You worked all of your life for this moment. So, this is the time to say-It’s Nebraska! This is about you, not your children).
2. What do I want to do in retirement? (You can only play so much golf. So, after that 4 hour round is over, what is there to do?)
3. Where are your  children? Is this important enough to divert your lifestyle choices? Remember, they lead busy lives, too.  Are they in the position to come visit me?

What Happens If?

4. What would I do, or my spouse, if either one of us passed away. Where would I live, what would happen to me?
5. Do we want our children or family to worry about making decisions about where and how I live in the future? Are they ready and willing to take off from work, put their career on hold, or disrupt their routine to make sure all of your care needs are being met?
6. What would happen if I, or my spouse, needed additional health care or supportive care? Who would provide it. Are there any agencies, family, or other organizations that could provide reliable, safe, and secure assistance nearby?

How Can I Improve My Lifestyle and Feeling of Self-Worth?

7. What am I not doing today that I enjoyed doing? Most of these answers relate to whether I like to drive anymore or to accept other functional changes. People begin to rationalize and compromise their lifestyle when functional changes occur.
8. When I look around at my neighborhood, do I know my neighbors any longer? Has there been significant turnover in new neighbors? If so, you can feel less comfortable about your social surroundings and sense of security. Is this desirable?
9. What can I do to stay involved with activities, my community, or my hobbies? If the answer is …not much. Then, are you really in a good environment?

What is the Real Cost to Live in a Continuing Care Retirement Community and When?

10. Am I keeping up with the general maintenance for my home? Rule of thumb is to spend 1% per year of the home's value on general maintenance, inside and out. If you are not doing that today, be prepared for a shock as you attempt to sell your home and find out that market upgrades are necessary to sell your home!
11. Can I afford to bring health care services to my home? Be careful here, as you will undoubtedly underestimate the cost of these services. There is a calculable cost to your children, if the plan is to rely upon them for direct care and support!
12. What is our income and asset status today and into the future? Truth be known, you can't take it with you. So, use the nest egg for its intended purpose… you have arrived at the moment you have been saving for, so take care of yourself.
13. When is it time to move to a continuing care retirement community? Well, this is a subjective, grey line to cross. I can only tell you that nearly all continuing care retirement communities will require a health care assessment and medical record review prior to granting residency. So, bottom line is, you can't wait as long as you think, and we can say "No" to your request for independent living residency. Come sooner, you’ll be glad you did!

With the answers you have compiled, you can now shop for a continuing care retirement community that will address the items you outlined in your answers. Do some research and have some fun doing it!