‘I’m here until I die’: Rich older Americans are paying millions just to get into luxury retirement campuses — monthly costs can then exceed $10K and health care plans can reach $7M

Life plan communities offer a higher quality of life — and more

Typically, life plan communities are designed so older adults can gain access to an active, vibrant network of peers, as well as to a full calendar of social activities, ranging from hula lessons to guest lectures. They also provide more traditional nursing home facilities that retirees can be transferred to if and when they need it.

Getting into a campus may require buying a unit and also paying monthly fees, which the Journal reports average $4,800 per month but can go much higher. The fees cover things like transportation to medical appointments as well as community activities. Retirees may also opt for an inclusive care contract that locks in their rate even if more intensive care becomes necessary.

Regardless of how the fee structure works, though, they're popular both because of the simplicity they offer as well as because they can provide structure and socialization when work no longer fills the hours.

In fact, one retired lawyer waitlisted for several communities told the Journal, “if we could get ourselves into a community at a time when we are able to enjoy it and make new friends, I think it will make for a better existence.”

Another resident described it as a “gift to our kids,” as the community can take care of them as they age. They won't have to scramble to find care after a health emergency or live an isolated lifestyle dependent on their children to take them to the doctor or the store.

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Are these communities worth the price?

Paying hundreds of thousands of dollars for a unit at a life-plan community is certainly not something everyone can afford. Ongoing monthly fees only add to that financial burden.

However, the Genworth Cost of Care survey reveals that a private room in a nursing home averages $9,733 per month, the cost might not necessarily be all that much higher than a regular nursing home — depending on the chosen facility and whether there's an inclusive care contract in place.

The costs of health care as you age can be significant — and worse yet, unpredictable.

Some seniors have even indicated that these life-plan communities likely cost them less in the long run since everything they need is covered. "I would be paying more if I lived in my very big house,” Jane McCaffrey, a retired CPA, told the Journal. McCaffrey said this is especially true if she needs nursing home care, which will be covered by her inclusive care contract.

“I’m here until I die.”

For seniors who can afford these programs, the hefty fee may well be worth the peace of mind that comes from having their care plan in place — especially when combined with all of the social and emotional benefits being in a vibrant community offers.