Retirement Living News

November 2005

HEADLINES  (Click on headline to read story)

* Consumer Reports Picks Top Retirement Towns
* Money Magazine Picks Five College Towns for its 'Best Places to Retire' List
* New MetLife Survey Finds Boomers Increasingly Concerned 
About Finances in Retirement
* Mississippi Names Two More Cities as Certified Retirement Communities
* Monster and AARP Introduce Collaborative Job Search and 
Career Content Sites
* Study Finds Assisted Living Costs Increased 15% from 2004

Archive of Past Issues                          New Retirement Communities

NEWS STORIES

Consumer Reports Picks Top Retirement Towns 

Researchers at Consumer Reports have identified six cities they believe are perfect retirement havens. In compiling the list they reviewed books on the best places to retire and worked with Warren R. Bland, geographer and the author of Retire in Style. "He helped us single out cities that are outstanding in terms of climate, housing prices and entertainment opportunities," said Consumer Reports' Deputy Editor Lisa Freeman on CBS's "The Early Show." 

According to Freeman, the following places are expected to be very popular in the next decade or so: Carson City, Nev.; Halifax, Nova Scotia; Lexington, Va.; Tallahassee, Fla., Thomasville, Ga., and Vernon, B.C. One thing these cities have in common is their beautiful surroundings, she said. 

Carson City, 14 miles from Lake Tahoe, is fast growing and has low unemployment. 

Halifax has the amenities of a large harborside city plus the beaches and trails of rural Nova Scotia. 

Lexington is near the Blue Ridge Mountains and is home to the Virginia Military Institute. 

Tallahassee, the state capital, boasts a revitalized downtown, two universities, and no state income tax. 

Thomasville is in Georgia plantation country and offers a good climate, a historic downtown, and low utility rates. 

Vernon, a five-hour drive from Vancouver, B.C., is in a lake region near fruit farms. It has high growth and a booming tourism industry. 

Freeman also offered other advice. 

Consider picking a college town 
"They tend to have cheap entertainment and food plus cultural events because there is a lot of cultural activity," she said. "A college town usually means there will be a major teaching hospital. We also found that low crime rates tend to be associated with college towns." She doesn't recommend resort or military towns because they tend to be crowded, have busy traffic and higher taxes and consumer prices. She said military towns can get very depressing. A lot are falling on hard times because of base closures. This means services will go, too.

Rent for awhile 
"A lot of retirees buy places in areas where they have vacationed but not lived," Freeman said. "We recommend that they live there for about a year before buying. Once you live there you may find that you like it better as a vacation spot. For example, Palm Springs in the summer can be unbearably hot. In the winter, it's gorgeous; same goes for Florida. They don't realize how hot and humid it gets."

Find a place that the family is going to want to visit 
"If you are going in the middle of nowhere to retire, people may not want to visit, and maybe there's not an airport that is convenient," Freeman said. She urged seniors to also think about retiring to a place that grandchildren will enjoy visiting.

Read up on the rules of retirement communities 
Freeman said that there can be problems with the rules of retirement communities from decorating your house to having house guests and even gardening. "If you live on a golf course, they may not let you plant a garden," she said. 

Don't buy too far in advance 
"I know someone who is 10 years from retirement and is planning to move to Sarasota, Fla., for retirement," Freeman said. "The place may change while you're waiting to move or you may change and want something different."
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Money Magazine Picks Five College Towns for its 
'Bet Places to Retire' List

For many retirees, easy access to cultural events and educational opportunities has always been at least as important as year-round sunshine and well-groomed golf courses. Today a collegiate environment has even more appeal in the new era of retirement in which it is increasingly important to continue expanding your skills and knowledge base. 

In compiling its list, Money Magazine looked for vibrant college-centered communities that offer at least some of the important attributes of traditional retirement havens, such as a reasonable cost of living, lower-than-average taxes and access to excellent medical care. 

Their selections: 

Ashland, Oregon - It offers year-round professional theater and is home to Southern Oregon University's Learning in Retirement program. On the down side, housing is relatively expensive. 

Las Cruces, New Mexico - It has inexpensive housing and sunshine almost 300 days a year. Retired faculty from New Mexico State University help run a wide-ranging lecture series known as the Academy of Learning in Retirement. One negative is that there are a limited number of restaurants in the city. 

Iowa City, Iowa - It is home to the University of Iowa, an annual jazz festival, five live theaters, and Senior College where retired professors teach everything from philosophy to digital photography. The university's hospital provides some of the best medical care in the region. The severe weather in the region may not appeal to everyone, nor will the high state taxes though the cost of living is low.

Brunswick, Maine - This classic New England fishing village is home to Bowdoin, a top-ranking liberal arts college. A group called Bowdoin Friends offers full access to lectures, concerts, readings and sporting events. Maine Medical Center in Portland is 30 minutes away. Winters are tough and state taxes are high but the cost of living is comparable to other New England college towns.

Athens, Georgia - The University of Georgia is located here and anyone over 62 can take classes at no charge. Learning in Retirement is a local, member-run organization that taps professors to teach classes. There are two hospitals within five miles of the town center, and three golf clubs sit just beyond the city's perimeter. Entertainment includes six local theaters, wine tastings in the botanical gardens, and musical events. 

For more information on great college towns for retirement and college-linked retirement communities, visit Great Places to Retire http://www.retirementliving.com/GPR_intro.php. Access requires a membership.
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New MetLife Survey Finds Boomers Increasingly Concerned 
About Finances in Retirement

As the first wave of Baby Boomers reaches age 59 1/2, the first year they are eligible to make tax-free withdrawals from their retirement plans, many are taking their first real look at retirement and a good portion are not happy, according to the MetLife Mature Market Institute. 

A new study, The MetLife Survey of American Attitudes Toward Retirement: What's Changed?, shows Baby Boomers are increasingly anxious about retirement. Conducted in 2005 with Zogby International, the study set out to compare data from research conducted in 2001. The new study reports that the number of Boomers 'worried about retirement' has doubled, with younger members, ages 41 to 49, more likely to voice concern. 

"Boomers are placing increasing importance on financial independence," said Sandra Timmermann, Ed.D., director of the Institute. "When asked about their primary consideration for satisfaction later in life, they are just as likely to cite finances as health, and are very concerned that they will outlive their money, forcing them to scale back their current lifestyle. Lamenting that they do not have the same retirement security that their parents had with defined benefit pension plans, more and more Boomers do not have a comfortable outlook toward retirement. 

"While it is troubling that Boomers are concerned about finances, perhaps more worrisome is the fact that fewer are taking the steps necessary to ensure financial security in retirement," Timmermann added. 

Only two-thirds (66%) of those surveyed believe they are saving at the rate needed to maintain their lifestyle, a decline from 77% in 2001.

Gay/Lesbian/Bisexual/Transgender Baby Boomers and Retirement 
In questions aimed at better understanding the impact of impending retirement on Gay, Lesbian, Bisexual and Transgender (GLBT) Americans, the Mature Market Institute found that Boomers in these groups are particularly likely to worry about their later years, 41% compared to 33% in the heterosexual population. Staying healthy later in life is the most frequently cited consideration for satisfaction in retirement among GLBT Boomers; financial concerns are second. Those in the GLBT cohort have significantly greater apprehension about being alone once they retire. One in seven (14%) report lack of companionship as their greatest fear, compared to just six percent of heterosexuals. 

"Despite their comparatively moderate concern over finances, only half (54%) of those in the GLBT group are saving at a rate needed to maintain their lifestyle in retirement," said Timmermann. "Of significant interest is that 16% of GLBT Boomers say they spend no time at all on retirement planning." 

GLBT Boomers are just as likely as heterosexuals to expect to continue working beyond retirement age, but they are more likely than the heterosexual population to say that their reasoning is financial. They are also more likely (40%) than heterosexuals (28%) to express concern about physical limitations that may inhibit their ability to function as they get older. 

Findings from the overall study include the following:                                                                       

• Boomers are delaying retirement until they believe they will have enough money to retire. In 2001, they believed they would retire between ages 55 and 64. Today, the median retirement age is between 65 and 70. 60% would prefer to retire before age 65. 17% say they will keep working indefinitely, a 10% increase.
• The number of Baby Boomers who feel retirement will improve their lifestyle declined by half, from 27% in 2001 to 13% in 2005, with 20% of women now saying they will have to scale back "a lot."
• Baby Boomers recognize they are likely to need some form of long-term care, but they have not purchased long-term care insurance. Many believe, erroneously, that government programs will pay for their long-term care needs.
• Retirement vehicles are unchanged. Most Boomers cite savings or investments, pensions, 401(k) plans and Social Security as their primary source of retirement income.
• Boomers are not concerned with leaving an inheritance. Three in four (74%) say they are unlikely to restrict their spending in retirement to leave money for others.
• Almost half (48%) of Boomers plan to work beyond the traditional retirement age, almost equal to the 2001 figure. Of those who plan to continue working, 69% will do so to stay active and engaged, up from 42% in 2001.

The MetLife Mature Market Institute is MetLife's information and policy resource center on issues related to aging, retirement, long-term care and the mature market. Staffed by gerontologists, the Institute provides research, training and education, consultation and information to support MetLife, its corporate customers and business partners.

To view the 40-page report, visit: http://www.metlife.com/WPSAssets/10969073981129213313V1F American%20Attitudes%20Toward%20Retirement.pdf
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Mississippi Names Two More Cities as Certified Retirement Communities

The Mississippi Development Authority, the state's chief economic development agency, has just named the cities of Laurel and Brandon as "certified retirement communities." Both cities join a group of 18 other cities and the three Mississippi Gulf Coast counties -- all of which have the same designation.

"This is a great honor for our city and something we all can be proud of," said Paulette Boone Frohman, public relations director for the city of Laurel. "It has the potential of having a great impact on Laurel, not only monetarily but to the quality of life as well."

The MDA's Hometown Mississippi Retirement Program was founded in 1995 to promote the state as a retirement destination to pre-retirees and retirees across the country. The program assists certified communities to market themselves as retirement locations and develop areas that retirees would find attractive for their lifestyle.

A Mississippi State University study released in February shows that the program has attracted 7,490 retirees to the state during the five-year period between 1995 and 2000. The additional retirees translated into a total statewide economic impact of about $194 million a year. The study also said the increase in residents led to the creation of almost 2,320 jobs during the five-year period in all 19 designated retirement areas combined.

Hometown Mississippi Retirement Program officials cite national statistics they say show each retiree household has an average of $320,000 in liquid assets and a median income of $33,000. About 90 percent of a retiree's income is spent locally on goods and services.

To qualify as a certified retirement community, each city must pass a stringent three-month intensive screening process conducted by the Hometown Mississippi Retirement Program. Applicants must offer several key benefits important to retirees, including an affordable cost of living, low taxes, low crime, quality health care, recreation, educational opportunities, cultural opportunities and a welcoming community. Find out more by visiting: http://www.visitmississippi.org/retire/
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Monster and AARP Introduce Collaborative Job Search and
Career Content Sites

Monster, the leading global online careers and recruitment resource, and AARP announced that as part of their coordinated effort, AARP members now have direct access to Monster job search tools via a collaborative site (www.aarp.org/findajob). In addition, a new career content channel "Careers at 50+" (careersat50.monster.com) offers tips and advice specifically targeted toward the aging workforce.

"Today, nearly half of AARP's members are working full or part time -- or are looking for work," said Bill Novelli, CEO of AARP. "We are dedicated to offering the right resources and information for older workers. This collaboration with Monster helps workers 50+ remain in the workforce as long as they want or need to continue working. It provides our members and other job seekers with tools and content to address their employment needs and concerns. This fits in well with our older worker initiatives -- which include recognizing the best companies for hiring and retaining 50+ workers, linking with employers who want to hire experienced workers, and providing helpful advice for career seekers on the aarp.org/careers Web site."

Developed to meet the unique needs of the over 50 population, "Careers at 50+" addresses the most important job search aspects voiced by mature seekers. The collaborative online career channel, which links directly to the AARP homepage, also offers the ability to post resumes, a variety of shared resources, and advice from Linda Wiener, Monster's age issues expert whose articles include "Ageism at the Interview." Additionally, the Web site publishes monthly e-newsletters and features related message boards connecting employers and workers age 50 and over.
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Study Finds Assisted Living Costs Increased 15% from 2004

Assisted living costs in the U.S. increased 15% in the past year, according to the 2005 MetLife Market Survey of Assisted Living Costs. The average monthly base price rose from $2,524 in 2004 to $2,905 this year, or $34,860 annually. The highest cost was reported in Boston at $4,629 per month, while the lowest was Jackson, Miss., at $1,642. The study was conducted for the MetLife Mature Market Institute by LifePlans, Inc., a risk management and consulting firm.

"As the population ages, assisted living is fast becoming a viable and often preferred option for those who are relatively independent, but who need some supportive services and social interaction," said Sandra Timmermann, Ed.D., director of the MetLife Mature Market Institute. "The cost of care in an assisted living facility is rising rapidly and in many areas, is outpacing inflation. With 15% yearly increases, this type of living arrangement may be out of reach for many people," Timmermann added. "In addition, fees sometimes added to the monthly base cost for services, such as meals delivered to the living quarters and dementia care, may add up, and should be researched carefully."

Assisted living is a housing option for older adults that promotes independence and autonomy while also providing services to assist aging individuals with daily living. Facilities can range in size from a small house to a large apartment-style complex, though most have between 25 and 125 units.

According to the Assisted Living Federation of America, more than one million Americans live in 20,000 assisted living residences. The typical resident is a woman in her 80's who is either widowed or single. The majority of those in assisted living facilities pay privately or through a long-term care insurance policy. Assisted living facilities traditionally have not been funded through Medicaid, though a number of states have begun covering some services through Medicaid waiver programs. Currently, no federal quality standards exist for assisted living and licensing varies from state to state.

Services included in the base price of an assisted living facility usually include two to three meals per day, assistance with Activities of Daily Living, social activities, medication management, laundry and housekeeping. Additional fees may be charged for services such as additional personal care, laundry needs over and above the basic service, meals delivered to the living quarters and dementia care.

The MetLife Market Survey of Assisted Living Facilities was conducted in August 2005 by telephone in 87 major markets in all 50 states and the District of Columbia. Ten facilities, or 15 percent (whichever was greater), were surveyed in each market, except for Washington, D.C., where only five were polled. All facilities surveyed were licensed according to each state's standards for licensure. These included freestanding as well as multi-level complexes and did not include continuing care retirement communities.

The MetLife Mature Market Institute, based in Westport, Conn., is MetLife's information and policy resource center on issues related to aging, retirement, long-term care and the mature market. To read the MetLife survey, go to: http://www.metlife.com/WPSAssets/84989326101130770986V1F200
5%20Assisted%20Living%20Survey.pdf
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