What is a retirement community? There is no one answer to that question. Retirement-aged adults have different options to consider when searching for the right place to settle down. And the right choice depends on your lifestyle, your budget, and your care needs.
Learn about the differences between active adult communities, independent living communities, and continuing care communities to help you make a decision about where to live in your golden years.
What Is an Active Adult Community?
Active adult communities are designed for the 55+ crowd. Often, these communities have age restrictions, which is why they are also referred to as 55+ communities. Typically, active adult communities offer residents the ability to enjoy their retirement years with fewer chores. The community often takes care of tasks like outdoor maintenance. If you value privacy and security, many active adult communities are gated.
You can find nearly any style and size of home you like in this type of community: single-family, townhome, or condo. You can also choose between communities with homes for rent or for sale.
This type of retirement community is curated for adults who want to enjoy active and social years. One of the biggest pros of living in an active adult community is access to a wide range of amenities. Many feature clubhouses with a wide array of amenities: game rooms, ballrooms, theaters, hobby centers. Exercise often features prominently in active adult communities. Expect to find fitness centers, pools, and even golf courses in active adult communities. You can even find a community where neighbors play friendly rounds of pickleball or tennis.
Some active communities may have on-site health care services, but this isn’t usually the case. But many of these communities are located near health care providers, and they may even offer transportation for residents.
Best for: Active adult communities are best for people who are seeking to make social connections in their retirement years. If you want to connect with other active adults with shared interests, the maintenance-free living of this type of community could be your ideal fit.
What Is an Independent Living Community?
Independent living communities are designed to empower adults who want to enjoy their retirement without the work that comes with home ownership. The cost of living in one of these communities covers maintenance and repairs. Typically, you rent a home in an independent living community. Many of these communities feature apartments, but you can find options with single-family homes as well.
Many independent living communities also offer an array of additional services that make life easier and more convenient in your retirement. While you spend your time socializing and enjoying your hobbies, you can make use of meal plans, housekeeping, laundry, transportation, salon services, and more.
In addition to these amenities, independent living communities offer many ways to stay active and engaged. On-site fitness centers and spas, green spaces, and meeting places bring residents together. These communities also often coordinate clubs, classes, and volunteering opportunities both on-site and off-site.
Like active adult communities, independent living communities do not typically have on-site health care services. But these communities will often provide transportation services to help residents get to and from their medical appointments.
Best for: Independent living communities give you the freedom to live your life how you want in your retirement years with the added convenience of extra services. If you want to enjoy your freedom while having easy access to help, like a meal plan, that makes your everyday life easier, you might find the right lifestyle in an independent living community.
What Is a Continuing Care Retirement Community?
A continuing care retirement community (CCRC) is often associated with the phrase “age in place” because it offers varying levels of care that can change over time. A CCRC can encompass independent living, assisted living, and skilled nursing.
Independent living is just like an independent living community. You can enjoy your independence with convenient services at your fingertips. Assisted living offers you more help with your day-to-day activities, such as bathing and dressing. Skilled nursing, also offered at CCRCs, provides 24-hour, onsite care for people who have complex medical needs. A CCRC may also offer memory care.
Your needs may change over time, and a CCRC can adapt with you. For example, if you develop mobility issues as time goes on, you can adjust the level of care you need. This community offers long-term security in your retirement. Just because you may need more care does not mean you will have to move to a new community.
Residents of CCRs have different types of contracts to consider. You may pay an upfront entrance fee, as well as monthly costs, depending on your situation.
Best for: As we grow older, our health care needs become greater. A CCRC offers you varying levels of care and the long-term stability of not having to move as your needs change over time. If you like the idea of that stability and the convenience of on-site care, you may want to focus your search on CCRCs.
Key Differences Between These Communities
While each type of retirement home is designed with older adults in mind, they have key differences that can help you understand which is the best fit for you.
Lifestyle and Amenities
The lifestyle and amenities that come with a retirement community can be a big deciding factor. If you are looking forward to busy days and easy socialization, an active adult community could be the right pick. Community clubhouses, social groups, sports facilities, and more make it easy to spend time with other community members.
If you value your self-sufficiency but you are looking for more convenience in your day-to-day life, independent living communities are worth investigating. You can maintain your own schedule with the benefit of housekeeping and meal services.
If you are living with more complex medical needs or you anticipate that you will in the future, a CCRC offers a full spectrum of care. If you need more services, up to skilled nursing, the option will be there. This also offers the benefit of remaining in one place; you won’t have to go through the upheaval of a move when you do need additional help.
Health Care Services
Access to health care is a big consideration in your retirement years. Active adult communities and independent living communities most likely do not have on-site health care services. But many of these retirement communities are conveniently located near health care providers. You can consider how much health care support you need and the proximity to those services as you evaluate these two options.
During your retirement years, you may find that you need support with day-to-day living and increasingly complex medical needs. If you are in that stage of life, a CCRC does have the benefit of on-site care. Assisted living services can help you with navigating daily life, while skilled nursing can provide the necessary health care.
Cost Considerations
You will find different price points across all three of these different retirement community types. For active adult communities, you can find options to buy or rent a home. While the community handles some maintenance, you will still need to consider many secondary living costs.
Independent living communities can take a lot of the guesswork out of budgeting. These communities tend to charge a monthly fee, which can include your living cost as well as expenses like meals and housekeeping. You will still need to factor in health care costs separately.
The cost of living in a CCRC will depend on the level of service you need, which means those costs could change over time. You will typically pay a community entry fee and then your monthly expenses. You do have the option of entering into contracts that involve some prepayment for medical services. Or you can opt for a fee-for-service model; you pay for services as you need them.
How to Choose the Right Community for You
As you think about your retirement plans, how can you choose the type of community that works for you?
Consider Your Current and Future Needs
Think about your current needs. How quickly could those change? If you are planning on spending many years of your retirement out and about socializing and enjoying your hobbies, a 55+ community is an attractive option. If your needs change in the future, you can always reevaluate your living situation.
On the other hand if you are at a point where you want to retain your independence but you want the added convenience of more on-site services, you may be in the market for an independent living community
For people who are at a stage in life that requires more frequent medical care and support, you may be interested in a CCRC. These communities have varying levels of on-site service that can work for you.
If you expect that your care needs will increase in the future, you may also value the security of a CCRC. You may not need a lot of care now, but it will be there when you do.
Evaluate Your Budget
Budgeting is an ongoing process for many people in retirement. You have to think about your current financial situation and how to prepare for your changing needs over the years.
Each type of retirement community comes with its own cost considerations. Buying a single-family home in a 55+ community, for example, will likely cost more than renting an apartment in the same community. Services, like outdoor maintenance, are likely included in your living costs here, but you will need to think about secondary costs, such as food and transportation.
Independent living communities and CCRCs may bundle more costs together. For example, housing and meals could be included in the total cost of living in one of these types of communities.
You may also consider your health care needs when evaluating your budget. Do you need on-site care, or do you want that option in the future? You may want to see how a CCRC fits into your budget.
The cost of a retirement community can vary significantly based on not only the type of community but its location, the size of the home you choose, and the services you want. In 2024, the median cost of an independent living community was $3,100 per month, according to data from A Place for Mom. You can find options on either side of that median.
Think About Hobbies and Social Engagement
How do you envision spending your time in retirement? If you love the idea of befriending people who share your hobbies and interests, you might find yourself right at home in an active adult community. These communities tend to offer a lot of activities that bring residents together. Whether you like to play a sport or craft, you can find a community that supports those activities.
Independent living communities tend to offer a more structured environment. You can still get to know your neighbors, but these communities offer more services for your convenience. You can still spend your time however you like with the added ease of a meal plan and transportation.
If security is your primary goal, a CCRC could be the right choice. While there is still plenty of opportunity to socialize, the services of this type of community evolve to meet you where you are at. You can enjoy your hobbies without having to move if you require more care in the future.
Where to Start Your Search
Active adult communities, independent living communities, and CCRCs have their differences and their benefits. Understanding your needs can help you decide which option is the best fit.
Before settling down, tour different communities. Ask questions. Do some research to get a clear picture of what life will be like in the type of community that works for you. 55places is here to help you in your search for the right retirement community.
