Retirement Living News

November 2006

HEADLINES  (Click on headline to read story)

• Property Taxes: New Report Shows Most and Least Expensive
  Counties for Home Owners
• Study Identifies Areas Most Vulnerable to Hurricanes
• Baby Boomer Study Shows Uncertainty About Retirement
• Many Cities and Towns Not Prepared for an Aging Population
• New Book: Health Care on Less Than You Think

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NEWS STORIES

Property Taxes: New Report Shows Most and Least Expensive 
Counties for Homeowners 

New data from the Census Bureau's 2005 American Community Survey shows homeowners in New York and New Jersey pay the most in property taxes. In the list of the top 20 counties, homeowners in five New York counties, 11 New Jersey counties and one Connecticut county have the highest tax bills in the country.

Using this Census data, the Tax Foundation, a Washington, D.C.-based nonprofit organization whose mission is to educate taxpayers about sound tax policy, has compiled a table that ranks high-population counties across the country according to various property tax measures. The table sorts 775 high-population counties -- those with more than 60,000 people -- by the dollar value paid for property taxes on owner-occupied housing units. 

The data shows and ranks counties based on: 1) median property taxes paid, 2) taxes as a percent of median home value, and 3) taxes as a percent of median income. To view the data, go to: http://www.taxfoundation.org/publications/show/1888.html. By scrolling to the bottom of the page you will find other options for displaying the data.
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Study Identifies Areas Most Vulnerable to Hurricanes

Although the entire East and Gulf Coasts are subject to hurricane impacts, some areas are much more vulnerable than others. Although this year the hurricane season was tame compared to last year, certain cities and states remain targets.

Using a formula based on storm intensity, flooding potential, population, evacuation routes and other factors, coastal scientists at Florida International University's International Hurricane Research Center have determined, "to nobody's surprise," that New Orleans has the top spot on the list. But their second choice is far less obvious: Lake Okeechobee, Fla. 

Few people can recall what happened in 1928 when a hurricane sloshed the lake's water into a powerful surge that broke the earthen dike around it. As many as 2,500 people died in the resulting flood, most of them impoverished farm workers. That hurricane remains the second deadliest ever in the United States. Only the 1900 hurricane that killed about 6,000 people in Galveston, Tex., was worse. 

The Army Corps of Engineers rebuilt the Lake Okeechobee dike, naming it for then-president Herbert Hoover. It is 140 miles long, 45 feet high in places and up to 150 feet wide at its base. It is part of the extensive system of levees, canals and other engineering that turned the lake's ancient watercourse to the Everglades into farmland. 

But many worry whether the dike can stand up to an assault from a hurricane. Presently more than 40,000 people live at the base of this massive structure. The dike is leaking and two recent reports (e.g., Bromwell, Dean and Vick, 2006 and Zhang, Xiao and Leatherman, 2006) declared it to be a "grave and imminent danger to the people and the environment of South Florida." 

"It's an accident waiting to happen," said Stephen P. Leatherman, who directs the International Hurricane Research Center at the university, where the new analysis was produced. 

In another study, an expert panel commissioned by the South Florida Water Management District reported that the dike did "not meet current dam safety criteria," and repair work that is underway or scheduled would not be enough to ensure its stability. The panel said the area of maximum concern is a 68-mile stretch centered on the town of Belle Glade, along the south shore. It urged that the pace of repairs be accelerated. 

Dr. Leatherman said that given the historical record, the Eastern end of Long Island is "overdue" for a major hurricane, like the storm that devastated the island and New England in 1938. But if such a storm strikes today, he said, it will be even more costly. On Long Island, he said, "real estate values are so high, that if it is hit there are going to be astronomical losses." The fear is a return of a 1938-type Great Hurricane that generated a 15-foot storm surge that overtopped and pancaked barrier beaches. The area is now crowned with waterfront mansions. 

The areas that are at greatest risk on the East Coast and Gulf Coast are: 

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Baby Boomer Study Shows Uncertainty About Retirement

Baby boomers will have a wide variety of housing needs in the future, depending on their retirement plans -- or lack thereof -- according to a study by the National Association of Realtors (NAR). 

Most of the 78 million baby boomers are far from retirement, with diverse plans and timelines, resulting in different housing requirements and significant shifts from patterns established by earlier generations. This comprehensive study is based on a survey conducted in April for NAR by Harris Interactive of nearly 2,000 American baby boomers. 

David Lereah, NAR's chief economist, said baby boomers are living longer and are different from previous generations because they have no set path for retirement and have more varied circumstances in life. "The differences from past generations -- and between baby boomers themselves -- will have a significant impact on housing needs over the next 10 to 20 years and many boomers simply don't know how they'll retire," he said. 

"A significant portion of baby boomers married later in life and had children at a later age, which means many will continue to work beyond the traditional retirement age. Older boomers are thinking about retirement, but one-third expect to go back and forth between periods of work and periods of leisure, and another 35 percent want to work at least part-time or start a business - all of this will have an impact on the kind of homes they buy as well as where they buy them." The median age at which baby boomers expect to stop working is 70, but 27 percent say they never intend to stop working. 

He said most baby boomers are currently in the workforce, a good portion of them have children living at home, and boomers remain a driving force in the housing market. "Just over a quarter of the boomer generation is aged 55 to 60, which is when many people traditionally begin to focus on their retirement plans. But analysis of the survey suggests they are more likely to stay in the workforce longer and will be less likely to downsize than previous generations." 

"Because they will be in the workforce longer, boomers will postpone purchase of retirement property and won't be making those moves as early as assumed," Lereah said. 

Forty-two percent of survey respondents would like to retire in the South, 32 percent in the West, 15 percent in the Midwest and 12 percent in the Northeast. "This tells us that the Sunbelt will remain a traditional draw for retirees," Lereah said. 

A quarter of baby boomers own one or more other kinds of real estate in addition to a primary residence. The data shows 13 percent own land, 8 percent own rental property, 7 percent a vacation home or seasonally occupied property, 2 percent commercial real estate and 3 percent some other kind of real estate. 

Four out of 10 respondents intend to convert their vacation home into a primary residence in retirement. Analysis by NAR shows baby boomers are proportionately more active in the second home market, owning 57 percent of all vacation/seasonal homes and 58 percent of rental property. 

Most survey respondents were unsure of their financial future, with three-quarters saying they are not financially prepared for retirement and many expressing anxiety about their ability to retire. Some boomers said they might withdraw retirement funds for housing or real estate expenses. 

Peter Francese, an independent demographic trends analyst and founder of American Demographics magazine, consulted on the findings. "For the vast majority of baby boomers, retirement is somewhere off in the future," he said. "Considering that boomers are healthier than their predecessors, and are more likely to work in an office setting, many of them may work five or 10 years beyond the traditional retirement age of 65," he said. 

Half of boomers who live in an urban area would like to retire in a small town or rural area. Their ideal retirement location characteristics include a lower cost of living, being near family, quality health care, better climate and being near a body of water. 

More than a third of all baby boomers want to retire in an urban or suburban setting, motivated by quality health care and cultural activities. Half of boomers said they would consider living in an age-restricted community. 

Francese said there's little doubt that the vast majority of baby boomers will delay retirement. "Some will put off retirement because they have to, but many because they want to," he said. "Many will have a larger income stream to purchase possibly two homes, which they may use to move back and forth between their retirement life and their working life." 

The study, titled Baby Boomers and Real Estate: Today and Tomorrow, can be ordered by calling 800-874-6500 or you can order online at: http://www.realtor.org/babyboomerstudy. The cost is $50 for NAR members and $125 for non-members.
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Many Cities and Towns Not Prepared for an Aging Population

Whether you plan to move when you retire or stay in place, it is important to know what services will be available to seniors in the community where you want to live. The aging population will pose new challenges for the delivery of local services such as health care, recreation, housing, transportation, public safety, employment and education. While these services assist a broad segment of the population, they also have a major impact on the quality of life of older Americans.

In an effort to help cities and counties better meet the needs of their aging population, five national organizations have joined forces to identify ways to prepare and deliver services for the Baby Boom generation. Known as "The Maturing of America - Getting Communities on Track for an Aging Population," the project is led by the National Association of Area Agencies on Aging, in partnership with the International City/County Management Association, National Association of Counties, National League of Cities, and Partners for Livable Communities. The initiative is funded by a grant from the MetLife Foundation. 

In the project's first phase, questionnaires were sent in November 2005 to 10,000 local governments to determine their "aging readiness" to provide programs, services and policies that address the needs of older adults and caregivers; to ensure that their communities are "livable" for persons of all ages; and to harness the talent, wisdom and experience of older adults to contribute to the community at large. A more in-depth questionnaire was then sent to 500 communities whose initial response indicated a high degree of preparedness. 

The survey found that only 46 percent of American communities have begun to address the needs of the rapidly aging population. 

Key findings of the report reveal the following: 

Health Care - In one-third of the U.S. communities surveyed, older adults do not have access to a range of needed preventive health care services such as health education, community-based health screenings, and counseling about prescription drug programs. 
Nutrition - 80 percent of U.S. communities have programs providing home-delivered meals for older adults, but only 25 percent provide nutrition education for seniors. 
Exercise - More than one-third of communities do not have fitness programs for older adults, although 86 percent report having biking or walking trails. Transportation - Many communities are not addressing the mobility needs of an aging population. For example, only 56 percent reported having "dial a ride" or door-to-door transportation services, and only 40 percent reported having road signage that meets the needs of older drivers. 
Public Safety/Emergency Services - More than 33 percent of communities do not have a system to locate older adults who become ill or wander due to Alzheimer's or other forms of dementia. And 70 percent do not have prevention programs for elder abuse and neglect. 
Housing - Only half of the communities reported having home modification programs helping older adults adapt existing homes for physical limitations. The study says this is important because a vast majority of older adults prefer to remain in their own homes as they age. 
Taxation/Finance - More than a third of communities do not provide tax relief for older adults living on limited incomes. 
Workforce Development - Over 40 percent of U.S. communities do not offer formal job training and retraining programs to help older adults remain in the workforce.  However 45 percent reported that discounts were provided at local colleges and universities for older adults who are interested in taking classes. Civic Engagement/Volunteer Opportunities - More than 60 percent of U.S. communities provide civic engagement or volunteer opportunities, including those for older adults. Most are offered through Senior Corps programs, including the Retired Senior Volunteer Program (RSVP), Senior Companions and Foster Grandparents.
Aging/Human Services - Many communities do not offer a single point of entry for information and access to all aging services, even though it is expected that aging baby boomers will demand it.  
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New Book: Health Care on Less Than You Think

Fred Brock, a former business editor of The New York Times and currently a contributor to the newspaper, has written the first ever hands-on guide to managing your family's health care costs--and maximizing your coverage. This is his third book in a series of books to help people develop strategies to increase wealth by decreasing expenses. The first two were Retire on Less Than You Think and Live Well on Less Than You Think. 

In his new book, Health Care on Less Than You Think, Brock applies his uniquely pragmatic and achievable money-protection strategies to the most alarming financial issue today: the health care crisis in America. He investigates the best options available, offering the first one-stop guide to maximizing health coverage while minimizing expenses -- with potential savings of hundreds or thousands of dollars each year. 

Drawing on the experiences of regular Americans and his pragmatic, dollars-driven analysis, Brock shows readers how to assess employer-based health plans and choose among the plans available to each family. He also covers how to shop for the best coverage at the least cost if a job does not provide insurance, and how to compare insurance costs, eligibility, and benefits in different states. 

Brock goes into detail on health savings accounts (HSAs), which allow you to put money aside tax-free to pay for the deductible portions of your health care. If you don't use all the money in your account, it can continue to grow year to year. In many cases, having an HSA will allow you to get lower premiums because you can keep insurance deductibles higher. 

He also cites a quirk in the prescription drug market that allows pills of different strengths to be sold for virtually the same price. If you have a pill that can be split in half, get your doctor to write you a prescription for the double-strength pills and suddenly your drug price is halved. 

Brock's information on the costs of branded versus generic drugs is an eye-opener. (Generic drugs may be cheaper to you, but their pricing varies widely, with some pharmacies making a killing on them in comparison to brand-name pharmaceuticals.) And there are plenty of other interesting and/or useful ideas on cutting your costs. 

Included in the book are worksheets and a handy resource list that gives readers the tools to customize their plan to their ages and needs. To order a copy of the book through Amazon, go to: http://www.amazon.com/Health-Care-Less-Than-Think/dp/0805079807/sr=
1-1/qid=1161887315/ref=sr_1_1/102-3341098-1820123?ie=UTF8&s=books
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