Retirement Living News

May 2008

HEADLINES  (Click on headline to read story)

• AARP Services and Focalyst Release Third Quarterly Boomer Report: How Well Do You Know Boomers?
• Moving to Assisted Living: An Emotional Decision
• Legislation Introduced to Safeguard Senior Investors 
  From Unqualified Advisors
• NCOA's Popular BenefitsCheckUp Program Helps 
  Older Americans to Identify Benefit Programs
• Two Retirement Communities to Collaborate on 
  Technology for the Aging Population
• New Book: Leisureville -- Adventures in America's Retirement Utopias

Archive of Past Issues                          New Retirement Communities

NEWS STORIES

AARP Services and Focalyst Release Third Quarterly Boomer Report: 
How Well Do You Know Boomers? 

AARP Services and Focalyst exposed a number of common myths about the Baby Boomer generation in the third Quarterly Boomer Report released last month. The report, "How Well Do You Know Boomers? Counting Down the Top 10 Boomer Myths," identified and investigated the top myths associated with Boomers in order to separate fact from fiction. 

"Boomers are redefining age and changing the way business is done" said Howard Byck, VP Corporate Development for AARP Services. "Contrary to many common assumptions, Boomers are making retirement obsolete, are very savvy about advertising, and are experimenting with new products." 

"It's very convenient to group Boomers together but doing so misses the mark," according to Jack Lett, Executive Director of Focalyst. "Within this generation are diverse segments that must be recognized and addressed differently." 

The report revealed the following myths to be untrue: 

Myth #10 - Boomers are retiring early 
Contrary to much of the attention given to the first Boomers turning 62 this year and being eligible to take Social Security benefits early. In reality very few Boomers are planning to stop working entirely when they reach retirement age - only 11%. 

Myth #9 - Boomers are downsizing their homes 
Despite the image of older consumers "winding down" as the years progress, and simplifying their lives and homes, only 6% of Boomers are planning to be living in a smaller residence five years from now. 

Myth #8 - Most Boomers are married empty nesters 
Most are actually not Empty Nesters. The study reveals that only about one in four Boomers fit the profile of married with adult children who have left home. 37% of Boomers still have children under 18 in the home, and a third are single. 

Myth #7 - You can capture Boomers with mainstream advertising 
Boomers are paying attention to advertising, but they do not always like what they see. 66% say that ads have gotten more crude in recent years and another 67% say they are less likely to purchase a product if they find the advertising offensive. It is important to recognize that the same message may not resonate with Boomers in the same way as it will with a younger consumer.

Myth #6 - Boomers are brand loyal and will not switch 
Commonly thought to be set in their ways, Boomers are just as likely as younger cohorts to experiment with new products. They are actually paying attention to advertising for new products and 61% of Boomers agree that "in today's marketplace, it doesn't pay to be loyal to one brand." 

Myth #5 - Boomers are all wealthy  
Collectively Boomers are the wealthiest generation in history, but only 9% are truly affluent (defined as having pre-tax incomes of $150,000 or more if working, or $100,000 or more if retired). In fact, one quarter of Boomers have no savings or investments at all. 

Myth #4 - Boomers are winding down with age 
Actually, they are quite active, as the typical Boomer regularly participates in an average of 10 activities and the participation extends beyond going to church or gardening. They are traveling (60 million took at least one trip last year), attending live sporting events (22 million) and bicycling (11 million), among other activities.

Myth #3 - Boomers are technologically challenged 
Contrary to many assumptions, Boomers were in the workforce during the evolution of computers, e-mail and the Internet, and were the first to understand the value of technology. In fact, 82% of Boomers use the Internet and their online activities extend beyond e-mail to instant messaging, downloading music or movies, financial transactions and online gaming. 

Myth #2 - Boomers are the "Me Generation" 
Boomers have typically been portrayed with the self-centered label the "Me Generation," but from their actions in later adulthood, this report reveals that a label of "We Generation" is more accurate. They are caring for others and caring for the world, with 70% saying they have a responsibility to make the world a better place. 

Myth #1 - Boomers are all the same 
The media often portray the members of the baby boom generation as a monolith - 77 million people thinking, acting, behaving and buying all in the same way. Nothing could be further from the truth. More life events occur between the ages of 50-65 than in any other time in a person's life, with the typical Boomer experiencing an average of two major life events around career, family, finance or health each year. These life events can have a major impact on attitudes, life goals and consumer behavior. It is a mistake to think of this cohort as all alike, and it is not all about age. Recognizing the differences among Boomers and understanding the truths behind the myths can help marketers craft products, strategies and messages that will resonate with this generation. 

AARP Services, founded in 1999, is a wholly owned subsidiary of AARP. It manages the wide range of products and services that are made available as benefits to AARP's 39 million + members. Focalyst is a leading source of information and insights about Baby Boomers and Mature consumers. As a Millward Brown specialty practice supported by AARP Services, Focalyst offers a broad range of qualitative and quantitative custom research solutions. 

For a complete copy of the report click here. You can also view a 6-minute interview from NBC's Today Show about the study.
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Moving to Assisted Living: An Emotional Decision

Most of America's elderly want to stay in their home as long as they can. For some it may impact their health and safety. Seniors often postpone the decision to move into senior housing until after an event occurs that forces the change. Sometimes an accident or serious health problem may push them and their family to make the change. The average age of assisted living residents is 85, according to the National Center for Assisted Living. 

Nearly half of all Americans will need long term care at some point in their lives. In fact, one in five over the age of 50 is at a high risk of needing long term care within the next 12 months. Therefore, planning is crucial if you are to designate a facility that will be able to provide your loved one, relative or friend with the highest quality of care and quality of life in a safe and secure environment. It helps to diminish the feeling of loss or guilt that some experience, either when entering or placing a loved one or relative in an assisted living residence or a nursing facility. In addition, it aids in making the transition less stressful for the new residents, families and loved ones. 

Having a conversation about a person's long term care wishes in advance will be helpful when the time comes to make more concrete decisions about the daily care of loved ones or friends who can no longer care for themselves. Yet, the decision to reside in a long-term care setting can be a difficult one to make. 

The best scenario is one where all parties realistically evaluate both the current situation and how it may change in the short or long-term future. Ideally, being proactive will help everyone arrive at a mutual decision that is the best solution. The first step in the planning process is having the conversation about a person's long-term care wishes. To help with that process, you can download a guide to help you -- http://www.longtermcareliving.com/pdf/conversation.pdf. This guide provides numerous tips on how to initiate this sometimes challenging conversation (and decision) easier.
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Legislation Introduced to Safeguard Senior Investors 
From Unqualified Advisors

Last month Senator Herb Kohl (D-WI), Chairman of the U.S. Senate Special Committee on Aging, introduced a bill to offer states the resources necessary to protect seniors from unscrupulous financial advisors who prey on the retirement savings of the elderly by touting misleading or fraudulent "senior designations." The Senior Investor Protection Act of 2008 (S.2794) would create a new grant program to encourage state regulators to adopt a uniform standard for the accreditation of senior financial advisors and to assist states in their efforts to protect seniors from being duped by these misleading designations. Many seniors targeted by salesmen using these designations have lost their life savings because they were steered toward investment instruments that were unsuitable for them, given their retirement needs and life expectancy. 

Last September, Chairman Kohl held a hearing to examine some of the questionable practices used by so-called senior financial investment specialists in order to gain access to the retirement savings of older Americans. An investigation conducted by the Aging Committee revealed that many of the designations that have been cropping up represent limited or no value with respect to advising seniors on financial matters, and that often these designations are obtained simply by attending a weekend seminar and passing an open-book, multiple-choice test. 

Chairman Kohl said "Seniors should be able to trust the people who invest their money. They should not be worried that the title after their advisor's name is scarcely more than a marketing ploy, and that it was not earned through sufficiently rigorous financial education or training." 

The bill provides states with incentives to improve their own rules regulating the use of designations by encouraging them to adopt provisions outlined in the North American Securities Administrators Association's (NASAA) new model rule on the use of senior designations, announced last month during the organization's national public policy conference. The Senior Investor Protection Act also calls on the National Association of Insurance Commissioners to work with NASAA to develop improved senior designation rules and suitability standards for insurance products, such as deferred variable annuities, which may be inappropriately sold to seniors. 

The grants provided by the legislation are designed to give states the flexibility to use funds for a wide variety of senior investor protection efforts, including: hiring additional staff to investigate and prosecute cases; funding new technology, equipment and training for regulators, prosecutors, and law enforcement; and providing educational materials to increase awareness and understanding of designations. The legislation has been endorsed by NASAA, The American College, and the Financial Planning Association.
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NCOA's Popular BenefitsCheckUp Program Helps Older Americans to Identify Benefit Programs

Many older people need help paying for prescription drugs, health care, utilities and other basic needs. Ironically, millions of older Americans - especially those with limited incomes - are eligible for but not receiving benefits from existing federal, state and local programs. Ranging from heating and energy assistance to prescription savings programs to income supplements, there are many public programs available to seniors in need if they only knew about them and how to apply for them. 

Developed and maintained by The National Council on Aging (NCOA), BenefitsCheckUp is the nation's most comprehensive Web-based service to screen for benefits programs for seniors with limited income and resources. http://www.benefitscheckup.org/ 

The service includes more than 1,550 public and private benefits programs from all 50 states and the District of Columbia, such as: Prescription drugs, Nutrition (including Food Stamps), Energy assistance, Financial, Legal, Health care, Social Security, Housing, In-home services, Tax relief, Transportation, Educational assistance, Employment, and Volunteer services. 

The NCOA has a mission is to improve the lives of older Americans. A non-profit organization with 3,700 members, it has a national network of some 14,000 organizations and leaders that help in its work. Members include senior centers, area agencies on aging, adult day service centers, faith-based service organizations, senior housing facilities, employment services, consumer groups and leaders from academia, business and labor. Its programs help older people remain healthy and independent, find jobs, increase access to benefits programs, and discover meaningful ways to continue contributing to society.
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Two Retirement Communities to Collaborate on 
Technology for the Aging Population

Two South Carolina retirement communities have agreed to become "laboratories" in support of high-tech solutions that will enable seniors to stay in the own homes longer and successfully deal with the challenges of aging. 

The University of South Carolina (USC) signed an agreement with the Fraunhofer Institute for Software Engineering of Kaiserslautern, Germany, and Columbia's Palmetto Health System to jointly develop technological responses to aging issues. The Lutheran Homes of South Carolina and Still Hopes Episcopal Retirement Community have agreed to test and help develop new products and services for the elderly. 

The Lowman Homes at White Rock, operated by Lutheran Homes of South Carolina, will equip one of its assisted living cottages with the products developed through USC's SeniorSmart Center. The goal will be to test commercial viability of the new products and speed their marketability. 

Dieter Rombach, who heads the Fraunhofer Institute for Software Engineering, said improving the quality of life is particularly urgent for Germany, which has the oldest average age of any industrialized country. The Institute is particularly good at commercializing new products. It developed the software for, and holds the patent on, the MP3 digital music software used by most digital music players.

USC already had a major commitment in its SeniorSmart Center to develop mobility, activity, rehabilitation and transportation technology for the elderly. The center will be the academic home of two of the endowed chairs, which were created to attract top researchers in the field to move their research to South Carolina. A third endowed chair will work with the center from Clemson University. It will eventually comprise 10 to 20 researchers who aim to keep older residents independent and engaged in their communities. 

The SeniorSmart Center will bring together many disciplines from medicine to engineering and social work to craft solutions to the problems of aging. Such combinations of skills could, for example, produce a refrigerator that senses outdated food, or smart cups that monitor the fluid intake of older adults who are prone to dehydration. 

The current research will focus on three areas: 
-- Making the home safer for older adults, with technological systems that help monitor their needs and assist with daily activities that become more difficult with age. 
-- Examining and promoting mobility outside the home by improving transportation safety and driving responses for older adults. 
-- And studying brain health to slow or prevent the onset of diseases such as Alzheimer's and Parkinson's.
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New Book: Leisureville -- Adventures in America's Retirement Utopias

When his next-door neighbors in a quaint New England town suddenly pick up and move to a gated retirement community in Florida called "The Villages," author Andrew D. Blechman was astonished by their stories. So he set out to investigate. Leisureville - Adventures in America's Retirement Utopias is the story of that investigation. 

Larger than Manhattan, with a golf course for every day of the month, two downtown areas, its own newspaper, radio, and TV stations, The Villages is a city of nearly 100,000 (and growing), missing only one thing: children. Started in the 1950s and popularized by Del Webb's Sun City, age-segregated retirement is an exploding phenomenon. More than 12 million people will soon live in these communities, under restrictive covenants, with limited local government, and behind gates that exclude children. And not all of the residents are seniors, or even retirees. 

Blechman delves into life in the senior utopia, offering a hilarious first-hand report on all its peculiarities, from ersatz nostalgia and golf-cart mania to manufactured history and the residents' surprisingly active sex life. He introduces us to dozens of outrageous characters including the Villages press-wary developer who wields remarkable control over the community, and an aging ladies man named Mr. Midnight, with whom Blechman repeatedly samples the nightlife. 

But Leisureville is more than just a romp through retirement paradise: Blechman traces the history of the trend, and travels to Arizona to show what has happened to the pioneering utopias after decades of segregation. He investigates the government of these "instant" cities, attends a builder's conference, speaks with housing experts, and examines the implications of millions of Americans dropping out of society to live under legal segregation. This is an interesting book on an underreported phenomenon that is only going to get bigger, as baby boomers reach retirement age. A fascinating blend of serious history, social criticism, and hilarious, engaging reportage. To order a copy from Amazon, click here. 
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