Retirement Living News

March, 2008

HEADLINES  (Click on headline to read story)

• Study Reveals Where Americans Are Moving
• Five States Lead the Way in Recognizing the 
  Upside of Aging Baby Boomers
• NAHB Study Finds Design, Desire to Be Near Family 
  Drives Decision for Seniors to Move
• CMS Releases List of 131 Nursing Homes That Need Oversight
• New Retirement Destinations in Texas Win Certification by State
• Report Questions Value of Some AARP Financial Products

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NEWS STORIES

Study Reveals Where Americans Are Moving 

Americans are continuing to flee the Northeast and the Midwest while the leading destinations continue to be Southern and Western states. In its annual migration survey, United Van Lines -- the nations largest household goods mover -- found that the biggest population loser was Michigan, where two families moved out of the state for every one that moved in. Close behind were North Dakota, New Jersey, New York and Illinois. The top inbound states were North Carolina, Nevada, Alabama, Oregon, and South Carolina. 

United has tracked shipment patterns annually on a state-by-state basis since 1977. For 2007, the accounting is based on the 212,917 interstate household moves the company has handled among the 48 contiguous states and Washington, D.C. It is important to note that the report covers all ages and doesn't necessarily focus on moving patterns of seniors. 

Looking at the South, it emerged as a top inbound region with North Carolina coming in as the top destination, followed by Alabama, South Carolina, West Virginia and Tennessee. The Western part of the country was also a popular destination region. The top states were Nevada, Oregon, Arizona, Wyoming and South Dakota. Other popular inbound Western states were Colorado, Montana, Utah and Idaho. 

The Great Lakes region generally showed an outbound trend. Michigan once again captured the top outbound spot. It was followed by New York, Indiana, Illinois, Pennsylvania and Ohio. Other high outbound states were North Dakota, New Jersey, and Wisconsin.
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Five States Lead the Way in Recognizing 
the Upside of Aging Baby Boomers

A new report finds that most of the innovative policy work on aging is happening at the state level. Armed with a new understanding of the upside of the aging baby boom generation, the leaders of several state governments are now taking the initiative to develop policies and programs that make the best use of boomer experience. 

In a new policy paper, Building an Experience Dividend: State Governments Lead Call to Engage, released last month by Civic Ventures and funded by The UPS Foundation, Arizona, California, Maryland, New York and Massachusetts stand out for their efforts to engage adults over 50 in meaningful work and community service. "The most interesting and innovative policy work on the aging of America is taking place at the state level," said John Gomperts, president of Civic Ventures. "From Sacramento to Annapolis, state legislatures are shifting the focus from the same old doom and gloom scenario to a much more complex and hopeful picture." 

In Arizona, where more than 25 percent of the population of several counties is over the age of 60, a diverse group of stakeholders has joined together through the Mature Workforce Initiative to develop policy recommendations and launch new programs, such as a certification program given to businesses deemed "mature-worker friendly." 

California is focusing on matching boomers' desire to serve with specific labor shortages, such as the demand for math and science teachers and qualified managers in the public sector. California's eServices office has created a database for retired job seekers to input their skills and interest, and for employers to search for employees. 

And in Maryland, the Baby Boomer Initiative Act spurred the creation of the Boomer Initiative Council, which is tasked with developing a strategy to keep boomers engaged in their communities through work and volunteer opportunities.

Civic Ventures is a think tank generating ideas, inventing programs and producing research and publications driving baby boomers to find meaningful work in the second half of life. To download a copy of the policy paper, click here.                                                                                           Top

NAHB Study Finds Design, Desire to Be Near Family 
Drives Decision for Seniors to Move

More than a quarter of a million people will opt to buy new housing in communities specifically built for those age 55 or better, according to data compiled by the National Association of Homebuilders' 50+ Housing Council. More than 100,000 such units will be constructed in 2008, the report adds, targeting this growing niche market. 

The report, Profile of the 50+ Housing Market, also dispels some common perceptions about the older home buyer. First, "downsizing" is a relative term and, second, the vast majority of these buyers won't be relocating to the Sun Belt. "Our data shows that 55+ home buyers may be 'downsizing,' but not by much," said Paul Emrath, NAHB's lead researcher on the study. "The average home in an active adult community still includes more than two bedrooms and more than 2,000 square feet of living space." 

The report found that homes in age-restricted active adult communities were only slightly smaller than other homes purchased by 55+ home buyers in both square footage and the total number of rooms, including bedrooms and bathrooms. However, they were less likely to have a specialty room such as a den or library.

Another finding was that the majority of age-restricted housing buyers (59 percent) indicated they felt they were moving into a better home than their previous one, although fewer than half (41 percent) said their new home cost more than the old one. 

"These boomer buyers may be scaling back in their home size, but they aren't willing to sacrifice quality," said Robert Tippets, immediate past chairman of the NAHB 50+ Housing Council and an active adult builder from Utah. "They're still looking for new homes that are well-designed and have many of the latest bells and whistles," he says. "What they are 'downsizing' is the maintenance that comes with owning the typical home with the big yard." 

According to data from the Census Bureau's American Housing Survey that NAHB's researchers analyzed, most buyers (77 percent) chose a new home in a particular age-restricted community because they liked the home's look and overall design, while the top reasons they chose the community was the design (49 percent) and to be close to friends and relatives (28 percent). More than half of all new buyers in 55+ communities move within the same county as they currently live. 

The NAHB report also suggests that new home buyers in this niche market are not as adversely affected by the current troubles in the mortgage market. Fewer than half of the customers who bought a new home in an age-qualified active adult community needed to take out a mortgage. Of those who did, the study found, the loan-to-value ratio was under 50 percent. Nearly all home buyers in these communities who made a downpayment reported that the downpayment came from the sale of a previous home.
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CMS Releases List of 131 Nursing Homes That Need Oversight

The Centers for Medicare & Medicaid Services (CMS), part of the U.S. Department of Health & Human Services, has released the complete list of U.S. nursing homes that have failed to meet safety and quality standards for care. 

The list, which identifies 131 "Special Focus Facilities" that require additional oversight, follows the release in November 2007 of a list of 54 such facilities. At that time, CMS came under intense criticism for making public only a partial list of Special Focus Facilities while sharing the full list with three associations representing the nursing home industry. 

CMS created the Special Focus Facility initiative in 1998 in response to the number of facilities that were consistently providing poor quality of care. Those facilities were periodically instituting enough improvement so that they would pass one survey, only to fail the next for many of the same problems as before. Facilities with this compliance history rarely addressed underlying systemic problems that were giving rise to repeated cycles of serious deficiencies. 

Serious deficiencies include such things as failing to give residents their medications in the correct dose at the correct time, not taking steps to prevent abuse or neglect, inappropriate use of restraints and failure to prevent or properly treat bed sores. To view a list of the 131 facilities, click here.  

Once a facility is selected as a Special Focus Facility, state survey agencies are responsible for conducting twice the number of standard surveys and, according to CMS, will apply progressive enforcement until the nursing home either significantly improves and is no longer identified as a Special Focus Facility, is granted additional time due to promising developments, or is terminated from Medicare and/or Medicaid. 

The list will be updated on a quarterly basis, and the names of the Special Focus Facilities will be kept on the CMS Web site for six months indicating their status. CMS is working on a modification to its Nursing Home Compare site that will link users to the list from a Special Focus Facility's site. 
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New Retirement Destinations in Texas Win Certification by State

The Texas Department of Agriculture, which runs the state's certified retirement community (CRC) program, has recently approved another city and another county.  With the approval of the city of Longview and San Augustine County, the total is now up to eight. Another city may be added soon. Palestine, a city of 17,600 people (2000 census) is submitting its paperwork and expects to receive approval by around June. 

Launched in June 2006, the CRC initiative helps rural Texas communities attract retirees and potential retirees to reside in their respective regions. It also encourages Texas tourism while promoting the state as a desirable destination for current and future retirees across the country. 

Retirees spend an average $36,000 each year in their new communities while also paying $3,000 or more in state and local taxes. Texas is the second most popular retirement state, and native Texans account for one-fifth of retirees returning to Texas. 

To become a CRC, communities must complete an application and assessments covering a wide range of topics including demographics, tax structure, local housing availability, safety, employment opportunities, availability of health care services, public transportation, and more. The application also includes support from the community, a marketing plan and a long-term plan. An advisory team representing leaders in business, healthcare, city government and state government review and score the applications. For information on each of the approved CRCs, click here. 
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Report Questions Value of Some AARP Financial Products

While many seniors feel that the insurance programs, annuities and mutual funds offered by AARP are a good deal, at least two advisory firms feel otherwise. A recent story in Business Week (February 25, 2008) reported on an analysis by Andrew Tignanelli, president of Financial Consulate, a Lutherville, Md., financial planning firm. After comparing AARP's financial products with others on the market, he concluded that many people can find a better deal elsewhere. 

As for life insurance, an analysis by Low Load Insurance Services in Tampa, Fla., found that seniors with average or good health can find lower cost life insurance outside of AARP if they have a medical exam. 

A spokesman for AARP, Adam Sohn, says: "We're not always the cheapest, but we feel we offer a higher-quality plan with elements that are not included in a lot of competitive plans." 

To read the full story, click here. 
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