Retirement Communities in Rockford Deposit Policy
Retirees hoping to spend their golden years in idyllic retirement communities in Rockford should slow down before signing over their savings. Continuing care retirement communities, or CCRCs, give retirees the opportunity to age in one location, moving from independent living to assisted living and eventually skilled nursing care. The arrangements are convenient and often luxurious, but some older Americans may overlook the financial due diligence they need to undertake before committing to a facility.
Often retirees may shell out well over $100,000 as an initial deposit and signing on for additional monthly payments that may change over time as their need for care increases. For many people, even though this is the largest purchase in their lives and they put in a good chunk of their retirement savings, many are penny wise and pound foolish. One of his clients paid $2 million up front to reside in a continuing care community. That retiree’s family is supposed to receive 90 percent of the deposit if he moves out or dies there, regardless of how long he resides there.
This Refund Policy Will Vary From One Facility to Other
They won’t hesitate to write a six- or seven-figure check to the facility, but it’s a bigger hurdle to have an accountant or advisor review the balance sheets. As of the end of 2017, there were 1,955 such retirement communities in Rockford, according to Ziegler, an investment bank. Narrowing down the continuing care center you’re interested in will begin with a question of lifestyle: You’re opting to spend the rest of your life there. High-demand amenities include fitness centers on site and multiple dining venues, including cafes and bistros principal and consulting actuary at Milliman. Though the independent living facilities are the show stoppers, you should also check out their assisted living and nursing care departments before deciding.
Look at the Staffing
Walk through the memory care and nursing care areas and talk to people. Are people getting help from the staff? Are the residents happy and cared for? Another reason to look closely at your continuing care center: If its independent living quarters are sparsely occupied, there might be financial troubles ahead.
In some cases, lower than 90 percent occupancy could suggest an issue with being able to fill certain units with new residents, and the inability to maintain a high occupancy level could be an indicator of problems in the future. Get into the details and work through them with your accountant: Key financial reports to obtain from your continuing care center include its audited financial statements, data on monthly service fee increases, financial ratios and reserves, according to the Rockford Advocates for Nursing Home Reform. Further, when continuing care centers do run into financial difficulty, there is no guarantee that a resident will get his or her money back. In that case, another provider may buy out a struggling facility, potentially leading to a change in services and fees, Breeding said. CCRCs are regulated by the states in which they are based. The degree to which those regulators will scrutinize these retirement communities in Rockford will vary.