Continuing-care retirement projects are expanding their services, amenities and the types of contracts offered buyers, according to a recent study by three senior housing industry groups.
Before a recap of the intriguing parts of the study, let’s review how these retirement projects operate, because they’re not like stand-alone buildings for seniors.
Continuing-care projects offer residents a spectrum of housing, usually on one campus. Residents start in an apartment where they manage on their own, though meals are available in a common dining room. As residents age and need help, or become ill, they move to the assisted-living or nursing care building.
The concept offers a measure of security. Residents know where they’ll live, even if their abilities decline. The certainty comes at a price, though. Such projects have hefty entry fees as well as monthly fees.
Back to the study. A few points to ponder:
– Couples. Thirty-six percent of residents are couples. Most of them live independently. The proportion of couples drops off sharply in assisted living and nursing care.
And, overall, female residents outnumber males by almost three to one.
Continuing care makes sense for aging couples, according to Doug Pace, director of assisted living and continuing care at the American Association of Homes and Services for the Aging, one of the study’s sponsors, which also included the American Seniors Housing Association and the National Investment Center. If one member of the couple needs round-the-clock care, he or she can move to the nursing building but the spouse can stay in the apartment.
“Both remain on the same campus,” Pace said. This makes visits easy, compared to situations where a spouse may have to drive a distance to see an ailing partner in a nursing home.
– Wellness centers. Of surveyed communities, about 66 percent have a wellness center on campus; 73 percent offer educational opportunities for residents; and 65 percent have high-speed Internet access. About 10 years ago, these kinds of projects started to add fitness centers. But now the emphasis is on wellness. “Now there is a more holistic approach to wellness,” Pace noted.
Wellness centers vary in services offered. The center might have health checks with physicians or nurses on staff. Or it could be more of an extension of the fitness center, with yoga and tai chi classes. Many projects now have both health and lifestyle-type services.
– Entry fees. Three-quarters of the units are in projects with an entrance fee. The other buildings are rental. The most common entry fee ranges from $100,000 to $200,000. Refunds of entry fees are common nowadays, especially at new projects. The percentage of the refund will vary based on the type of contract signed.
Consumers should consult an attorney and financial planner before signing a contract, experts say. Also, ask for an audited financial statement from the community. This provides an overview of its fiscal health, which can be very important if a resident, or the estate, plans to eventually recoup the entry fee.
Also, contracts vary. Many projects offer several different contracts, a change from 1998 when the study was last conducted. For example, a lower entry fee may mean fewer health services in the future.
– Resident profile. Forty-seven percent of continuing-care residents previously lived within 10 miles. The median age is 84. Of those who move in to the independent portion of the project, the median age is 80. The average length of stay for these residents is about five years, the study says. After a resident transfers to assisted living, the average stay there is about a year.
Of those living independently, the median annual income is about $49,000. The median net worth is $569,000. About 67 percent of continuing-care projects have minimum requirements for both annual income and net worth.
Affluent Boomers
Speaking of net worth, rich Baby Boomers apparently plan to stay mobile, according to a just released study by Coldwell Banker. The real estate brokerage surveyed its sales associates who cater to the expensive property market. It found that 52 percent of Boomers who bought an expensive home in the last two years plan to spend less than five years there. Almost half said they lived in their current residence only one to five years.
Of recent purchases, 65 percent of Boomer clients made the move because they want a bigger house. The homes purchased, according to the survey, are as large as 4,500 square feet. And 88 percent of the homes cost about $1 million.
Boomers want these features in their homes: main floor master suite, 47 percent; three-car garage, 44 percent; and home gym, 28 percent.
And sometimes surveys confirm what we already know. Affluent Boomers said they want a house close to their favorite pastimes. Tops on the list: shopping, 71 percent, and golf, 69 percent.
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Jane Adler is a Chicago-area freelance writer. If you have questions or information to share regarding housing for senior citizens, write to Senior Housing, c/o Chicago Tribune Real Estate Section, 435 N. Michigan Ave., Chicago, IL 60611. Or, e-mail realestate@tribune.com
