Retirement money held hostage

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Continuing Care Retirement Communities, or CCRCs, have long been seen as attractive places for seniors to settle. If residents need increased health care, they don’t need to move. Seniors make a large “entrance fee” to move in, but CCRC contracts typically promise a large percentage of the entrance fee will be returned to the resident when they move or if they die.

However, there is one major caveat: the refund is only returned after the unit is occupied by a new resident, and there’s no time limit on when the refunds must be made. Because of this, former residents find their money – often hundreds of  thousands of dollars – is being held hostage. Read this Bamboozled column on to learn more about this case, and how you can support legislation for fair refunds.