Retirement Living News

May 2009

HEADLINES  (Click on headline to read story)

• Study Finds Most Baby Boomers Prefer to Age in Place; 
  Growing Numbers Are Heading for Age-Restricted Communities
• NAHB Announces Winners in its "Best of 50+ Housing" Competition
• No COLA Expected for Social Security Beneficiaries
• Seniors to Get Stimulus Payment This Month
• Pulte Homes and Centex Merge to Become Biggest U.S. Builder
• AARP Creates New Web Site for Those Seeking Life Crisis Help

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NEWS STORIES

Study Finds Most Baby Boomers Prefer to Age in Place;  Growing Numbers Are Heading for Age-Restricted Communities 

A study conducted by the Met Life Mature Market Institute, in collaboration with the National Association of Home Builders (NAHB), finds that most baby boomers, like their parents, are choosing to "age in place," but a large and growing number --- more than 1.2 million households - are choosing to move into 55+ communities that are designed to meet their needs. The data is significant because by 2010 the boomers will represent one quarter of the U.S. population, and will greatly impact the choices available in the housing market. 

The results of the multi-phased study were presented at the NAHB's Building for Boomers & Beyond: 50+ Housing Symposium in Philadelphia last month. Using data from the U.S. Census Bureau's American Housing Survey from 2001 through 2007, the researchers found that new homes offered to 55+ buyers and renters grew in size from an average of 1,800 square feet to about 2,300 square feet. For some, this represents downsizing. 

Those who moved from their existing homes did so primarily for reasons relating to their families, but the design and look of the community, and the quality of the home, as well as the design and layout of the new residence, were the factors most often considered by those who chose to move. 

"The Baby Boomers' influence on housing choices has been profound, and will have a huge impact on trends in housing for the mature market as that age group continues to move toward retirement," said Sandra Timmermann, director of the Met Life Mature Market Institute. "Some findings, such as the tendency for buyers of 55+ communities to continue to work in greater numbers and for longer periods of time, show us that this group is redefining the traditional notion of retirement to suit their lifestyle choices." 

One of the study's findings was that the majority of 55+ households do not live in age-restricted or other 55+ communities, yet that number is on the rise. The share of those living in active adult communities grew from 2% in 2001 to 3% in 2007. Residents of this type of community registered the highest satisfaction rates. However, most 55+ respondents indicated they were happy with their current home. 

Another finding was the number of home buyers in age-restricted communities with some college education. In the past six years that number has grown from 50% in 2001 to 73% in 2007. 

To read the 72-page report, click here. 
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NAHB Announces Winners in its "Best of 50+ Housing" Competition

The National Association of Home Builders' (NAHB) 50+ Housing Council announced the winners for its 2009 Best of 50+ Housing Awards last month at its meeting in Philadelphia. The competition honors excellence and innovation in the design, development and marketing of housing for older consumers. The annual awards program showcases the latest trends in housing for the mature market.

Among the honorees were two winning developments that featured designs and amenities attuned to the needs and wants of today's 50+ resident. Entries represented a diverse range of projects including everything from a community with stunning Arizona mountain views to a luxury continuing care setting in Japan. 

Sun City Palace Tsukaguchi, in Osaka, Japan, won the Gold award for Best Large Continuing Care Residential Community, as well as an Innovation award. The community is made up of three towers, housing a total of 760 units, linked at garden level by a circulation promenade surrounding a landscaped courtyard to provide access to community amenities. Integrating interior and exterior design, elegantly detailed lounge spaces overlap the promenade area, offering both garden views and seating areas to rest and socialize. With its independent living area adjoined to a nursing care center, the community allows flexibility and convenience for couples to age in place, even if one requires additional care. Offerings such as free shuttles, large community dining areas, exercise rooms and spas with Japanese soaking tubs, a tea lounge, library, and performance hall are just some of the many highlights Sun City Palace offers residents. 

Heritage at Todd Creek, in Buckeye Ariz., took the Gold award for Best Clubhouse at an Active Adult Community. This community is located just west of the Phoenix metropolitan area, where residents can enjoy views of the White Tank Mountain Range. This community of single-family homes creates a cohesive atmosphere with services and recreation for the residents. The clubhouse is the epicenter of social interaction and personal growth, featuring employment opportunities through ASU Lifelong Learning Academy, a cultural hall, computer lab, fitness center, and an arts and crafts room. Beyond the clubhouse, the residents have access to a host of additional activities, such as an 18-hole golf course, swimming pools, volleyball, horseshoes, bocce ball courts, an outdoor amphitheater, a softball stadium, and the onsite restaurant, Indigo Grille. 

There were 41 projects that received a gold award and 39 silver winners. View the complete list of this year's winners here. 

Key community winners were as follows: 

Best Small Continuing Care Retirement Community (CCRC) 
Varenna, Santa Rose, CA  
Judson Park Retirement Community, Des Moines, IA 

Best Large CCRC 
Sun City Palace Tsukaguchi, Osaka, Japan (No web site) 
The Stratford at WestClay, Carmel, IN 

Best Congregate/Independent Living Community 
The Bellettini, Bellevue, WA  
Touchmark at Mt. Bachelor Village - Cliff Lodge, Bend, OR  
Avondell, Bel Air, MD  

Best Assisted Living Community 
Sunrise Senior Living, Monterey, CA 
Isle at Watermere Assisted Living, Southlake, TX 

Best Active Adult Community (Up to 500 homes) 
Parkview Court, Torrance, CA  
Brookhaven of East Cobb, Kennesaw, GA  
Belvedere, Vallejo, CA  
Reunion at Redmond Ridge, Redmond, WA 

Best Active Adult Community (Over 500 Homes) 
Sun City Festival, Buckeye, AZ 
Del Webb at Lake Oconee, Greensboro, GA 
Trilogy Central Coast, Nipomo, CA 
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No COLA Expected For Social Security Beneficiaries

For the first time in more than three decades, Social Security recipients will not get any increase in their benefits next year, federal forecasts show. The New York Times reports that the absence of a cost-of-living adjustment (COLA), calculated under a formula set by law, will be a shock to older Americans already hit by plummeting home values, investment losses and rising health costs. More than 50 million people receive Social Security. 

"Most seniors have never been through a year in which there was no Social Security COLA," said David Certner, legislative counsel at AARP, the lobby for older Americans. Beneficiaries have received automatic cost-of-living adjustments every year since 1975. The increase this year was 5.8 percent. The forecasts, by the Obama administration and the Congressional Budget Office, indicate Social Security beneficiaries will not receive any cost-of-living increase in 2010 or in 2011. The COLA is intended to preserve the purchasing power of Social Security, by increasing benefits to keep pace with consumer prices. In the past year, overall inflation has been low, largely because of the economic downturn and a decline in energy prices. 

A freeze in Social Security benefits would have major implications for Medicare because the COLA, in effect, puts a cap on premiums for Medicare Part B, which covers doctors' services. If there is no cost-of-living adjustment for Social Security, about three-fourths of beneficiaries will not see any change in their basic Part B premiums, federal officials said. But some beneficiaries could face substantial increases in their Part B premiums. In addition, millions of beneficiaries could see higher premiums for drug coverage, provided under Part D of Medicare. 

Under federal law, most Medicare beneficiaries have some protection. Their basic Part B premiums cannot rise more than the dollar amount of the cost-of-living increase in their Social Security checks. So if there is no COLA, their basic Part B premiums will not increase. But one-fourth of Medicare beneficiaries are not protected by the law, and their premiums could increase. Most Medicare beneficiaries pay a monthly Part B premium of $96.40. The Congressional Budget Office estimates the basic premium will rise to $119 next year and $123 in 2011 for those who are not protected under federal law. 

Mr. Certner, from AARP, described the outlook for consumers: "If, as expected, there is no COLA in Social Security next year but premiums for drug coverage increase, as expected, millions of beneficiaries will see their Social Security checks reduced for the first time." 

Social Security and Medicare trustees will describe the outlook for benefits and premiums in their annual reports this month.
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Seniors to Get Stimulus Payment This Month

This month, retirees and other Social Security beneficiaries will get a check for $250 per person from the Federal government, as part of the economic stimulus bill signed into law in February. The so-called senior payment--$250 for individuals, $500 for couples who both receive some Social Security benefit--will go to retirees, older veterans and people with disabilities, railroad retirees and SSI (Supplemental Security Income) beneficiaries. 

And unlike the stimulus rebate of 2008, they won't have to fill out a tax form or do anything. Just wait for the money to show up. They'll get the money the same way they get Social Security-either through direct deposit or a check in the mail.

Federal and state retirees who don't receive Social Security benefits also will qualify to receive the payment but may have to file 2009 tax returns to receive it.
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Pulte Homes and Centex Merge to Become Biggest U.S. Builder

Pulte Homes Inc. has purchased Centex Corp. The two homebuilders will both benefit from joining their assets now, as the United States is in the worst housing slump since the '30s. Pulte bought Centex for $1.3 billion in an all-stock deal. The companies now share $1.8 billion in net debt. 

"Combining these two industry leaders with proud legacies into one company puts us in an excellent position to navigate through the current housing downturn, poised to accelerate our return to profitability," said Pulte President and CEO Richard Dugas. 

"Centex's significant presence in the entry level and move-up categories is complemented by Pulte's strength in both the move-up and active adult segments, the latter through our popular Del Webb brand," Dugas said. "Together we will have considerable presence in more than 59 markets across America. In addition, both organizations share an unwavering focus on delivering unparalleled customer satisfaction, maximizing the influence of strong brands and setting new standards of achievement in operational efficiency." 

Dugas noted that Centex has sizable land holdings in both Texas and the Carolinas, "two areas that continue to exhibit strength in the face of today's difficult housing market." 

The CEOs said the Pulte and Centex brands will continue, but the company will be called Pulte Homes. The new combined companies will sell houses in 59 U.S. markets. Dugas will take over as chairman, and Eller will be vice chairman and serve as a consultant for two years. The company headquarters will be in Bloomfield Hills, Mich. Pulte Homes will see an immediate result from the merger.                                      
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AARP Creates New Web Site For Those Seeking Life Crisis Help

In times of life crisis, family finances may suffer significantly, as many households struggle to make the urgent and crucial financial decisions that are usually required, according to the results of a nationwide survey released by AARP Financial Inc. 

More than half (57%) of the 1,200 adults surveyed said they had already experienced a major life crisis such as job loss, divorce, death of a spouse, or serious illness or disability of an immediate family member or themselves, and in the vast majority of cases, the event had a significant impact on their finances.

"The most important financial decisions we face are often precipitated by life crises," said Richard "Mac" Hisey, President of AARP Financial Inc., a taxable subsidiary of AARP. "But given the unpredictable nature of these events, these are often times when we may be distracted, emotionally overwrought and vulnerable. As a result, many of us may make poor decisions - or take no action at all -- possibly putting our financial security at risk. 

"Complicating matters is that it can be hard to find good information and trustworthy advice on financial decision-making in times of life crisis," Hisey added. "As the survey showed, the vast majority of Americans seek financial advice from families and friends - who are well-intentioned but not necessarily financially well-informed." 

The survey found that long-term job loss and long-term disability or serious illness of you or your spouse were the events that wreaked the most havoc on family finances. Of those Americans who experienced long-term job loss, six in ten said that it had a very significant impact on their finances and 47% of respondents who experienced a serious illness or long-term disability echoed the same sentiment.

A life crisis filled with emotion can make it difficult for individuals to make sound financial decisions. Over half of those surveyed (54%) said it was hard to keep their emotions in check during a major life event. 

When it comes to finances, "overwhelmed" was the most frequently cited emotion in instances of divorce (48%), death of a spouse (65%), serious illness/disability of self, a spouse or life partner (75%) or serious illness/disability of a child (79%).

Women were significantly more likely to have experienced one of the life crises (65% vs. 49%) and face a more detrimental financial impact. Sixty-six percent of women who experienced long-term job loss in their household said it had a very significant impact on their finances (versus 49% of men), and 46% of women said death of a spouse had a very significant impact on their finances (versus 17% of men). 

Respondents said they turned to immediate family for help managing the financial aspects of a life crisis. While 45% of those who had experienced a life crisis said it was hard to trust the financial information/guidance they were receiving, 66% of respondents who sought professional advice in times of life crisis said they had a "very positive experience." 

To help people deal with life crisis events, AARP Financial has set up a new Web site -- http://www.aarpfinancial.com/content/Learning/lifecrisis.cfm -- to provide financial advice for those who need help in making decisions during a crisis period.
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