Report Compares Financial Status of CCRC, Assisted Living
Residents

While residents of continuing care retirement communities (CCRC) generally have good incomes and a healthy collection of assets, assisted living residents aren’t quite so well endowed. According to a new report from the Center for Retirement Research (CRR) at Boston College, residents of assisted living often don’t have sufficient income to cover their communities’ costs.
Who makes up the difference between income and fees for residents who can’t make ends meet? Almost half (47.8%) of assisted living residents identify family members as primary payers, while Medicaid helps pay the bills for one out of 10 assisted living residents. Almost 15 percent of CCRC residents liquidated some of their assets to cover community-related expenses.
The CRR report, entitled “The Asset and Income Profile of Residents in Seniors Care Comm unities,” summarizes and compares the financial status of residents in various living situations. For example:

• Older people living in private residences generally are homeowners who have a median income between $22,000 and $30,000 and a net worth averaging $206,000.
• Residents of independent living communities have lower household incomes than ommunity dwellers and are more likely to receive financial help from their children.
• Assisted living residents have an average income of $23,000-$33,000, which includes Social Security and pensions. Ten percent of these residents receive additional payments from Supplemental Security Income and four percent work for pay.

The income of CCRC residents averages between $40,000 and $45,000. Almost all CCRC residents (85%) collect
investment income and about one-fifth (20%) still own homes that are worth, on average, over $620,000.