News & Events

5/19/2009
Social Security, Medicare Woes Herald Better Value for Retirement Community

Continuing Life Communities Offers Financial Haven for Seniors

THOUSAND OAKS, CALIF. — Seniors stunned by the news that Social Security recipients will not receive any increase in their benefits in 2010 and that monthly Medicare premiums could rise should take another look at continuing care retirement communities, according to Warren Spieker, Vice President of University Village Thousand Oaks, owned and operated by Continuing Life Communities LLC.

Recent forecasts from the Congressional Budget Office are predicting no cost-of-living adjustments for Social Security benefits for the next two or three years. In addition, one quarter of Medicare recipients are expected to pay eight percent more each month in monthly premiums in 2010 and 15 percent more in 2011. This rise in health care costs, coupled with the freeze in Social Security benefits, effectively lowers the amount seniors will receive each month, Spieker said.

"Our financial program has saved residents from the impact that rising health care costs and inflation takes on their fixed incomes," he said. "Last year, the increase in our residents' income from Social Security was higher than the increase in their monthly fee expense.

"Many seniors have been hit very hard by investment losses and lowered home values," Spieker said. "Now they have a potential new concern with decreased Social Security payments. Because of this perfect storm of economic worries, we are encouraging seniors to take another look at the financial value offered by continuing care retirement communities."

According to Spieker, University Village Thousand Oaks provides:

1. A Home Sale Assistance Program. Seniors can move into one of Continuing Life's communities without paying their full entrance fee while they sell their home. Residents pay the monthly service fee, which covers dining, transportation, all amenities, and unlimited lifetime access to the assisted living, skilled nursing and Alzheimer's care centers.
2. Substantial tax benefits for those who live in a Continuing Life or other qualifying Continuing Care Retirement Community (CCRC). CCRCs that include the cost of nursing care in the financial program are able to offer the residents a tax deduction as a pre-purchased medical care expense as cited in IRS Ruling 93-72.
3. Protection against rising nursing care costs. Nursing costs have historically increased much faster than inflation or even the inflation adjustment benchmarks for long-term care insurance. With these cost increases likely to continue to outstrip the fixed incomes of seniors, it is a major benefit to have nursing care included in a program which protects against the financial impact of future health costs.
4. Freedom from the cost of maintaining two residences. When one spouse needs assisted living or skilled nursing care, it becomes the other individual's responsibility to take care of the home and pay the high costs for the care unit. The financial and logistical challenges, coupled with the older age of the residents, create a difficult situation to manage.
5. Peace of mind for adult children who won't have to worry about financing or caring for their aging parents. Adult children are often squeezed between financing their own retirement and their children's education as well as their parents' health care. Moreover, the burden of managing the parent's care is often left to the adult child who lives closest - often to the detriment of his family or job.

For more information on the financial benefits of continuing care retirement communities, please log onto www.uvto.com or call (800) 915-2113.

About Continuing Life Communities LLC
Continuing Life Communities builds, owns and operates several continuing care retirement communities in California. Completed communities include La Costa Glen in Carlsbad, Morningside in Fullerton and University Village in Thousand Oaks. Projects in development include Stoneridge Creek in Pleasanton, the Orchards in San Juan Capistrano, and more. The company has built more than $400 million in retirement communities with more in the planning stages.

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