Retirement Living News

June 2009

HEADLINES  (Click on headline to read story)

• Amenities in Active Adult Communities Will Be Changing
• Senate Panel Releases Report on Life Settlements
• Survey Reveals Future Senior Living Residences Will Utilize Smart Home Technology
• Consumer Reports Offers Guidance on Purchasing and 
  Owning a Hearing Aid
• Kiplinger's 2009 Retirement Planning Guide Now on Newsstands
• New Book: The Successful Retirement Guide

Archive of Past Issues                          New Retirement Communities

NEWS STORIES

Amenities in Active Adult Communities Will Be Changing 

With retirement funds severely diminished in the past year, Baby Boomers are reevaluating their needs as they realize they have long lives to lead. Health, family, friends, convenience and value will be moving to the forefront of their lifestyle choices. There is a "New Normal" developing as a result of the recession, the excesses of past years, the overinflated value of homes, and the "bigger the better" approach. 

The golf club style resorts with small lot single family homes have in the past defined the typical 50+ community with their grand clubhouses and luxury lifestyle. While this is not likely to change, it is reflective of only a small percentage of the market. 

In the future different types of communities will attract the remaining population of Baby Boomers. The removal of age restrictions is being sought even on existing site approvals. Multigenerational communities will intermingle with younger families and urban and mixed-use locations that provide walkability, convenience and mass transit. Rental apartments in lieu of ownership are becoming a desirable alternative choice for many. Non-married friends and family are living together; in-laws, parents and boomerang kids are living with baby boomers. 

The proximity of communities to commercial centers for shopping, entertainment, cultural and educational events is becoming more important, as is access to health care. Many boomers will still want to work or do consulting therefore home offices and work niches will be standard in homes with the "New Normal." 

In the past, clubhouses had defined spaces and functions. Today, open floor plans with multifunction rooms permit residents to "make their own" activity center. Social clubs are the rage. Lifestyle directors are becoming the concierges for the residents, organizing trips, travel and social parties. Larger fitness clubs are replacing fitness rooms even in the smallest clubhouses. Aerobic and Yoga programs are becoming more popular. Juice bars and fitness cafes create a social venue. The bottom line is that the needs and desires of the Baby Boomers are still undefined and developing. Time will tell what the "New Normal" turns out to be.
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Senate Panel Releases Report on Life Settlements

Congress is taking a hard look at life settlements which is a relatively new practice of selling a life insurance policy to third party investors. The Senate Select Committee on Aging conducted a six-month investigation and held hearings due to concerns about the lack of regulation and oversight that may lead to exploitation of senior citizens. 

``The life settlement industry needs our attention and it will get it, '' declared Senator Herb Kohl (D-WI), chairman of the Senate panel, at the conclusion of a recent committee hearing on the life settlement market. A summary of the report can be read at http://www.aging.senate.gov/letters/lifesettlementfindings.pdf 

Kohl and Senator Mel Martinez (R-FL), the panel's lead Republican, expressed concern that the absence of adequate regulation leads to consumer fraud. Insurance is typically regulated by the states while securities are regulated by the federal government. Life settlements are an awkward hybrid of insurance and securities because the settlements are often bundled and marketed as an investment vehicle, much like subprime mortgages. Witnesses said that the market is now governed by state regulations which vary widely from state to state creating opportunities and loopholes to be exploited by unscrupulous marketers. 

The life settlement industry has grown from $2 billion to an estimated $30 billion a year since 2000. Under the practice, a policy holder sells a life insurance policy for less than its face value to third party investors. The investor expects to profit at the death of the insured by collecting more in death benefits than the amount the investor paid for the policy. Investors typically pay the policy holder more than the amount the insurance company would pay to cash out the policy but the investor is betting on the policy holder to die quickly. Critics say this can be a risky strategy for financially strapped seniors who might be liable for significant tax bills as a result of a life settlement sale. 

A letter from Treasury Secretary Timothy Geithner promised that the IRS would provide guidance on the tax treatment of life settlements. SEC Chairman Mary Schapiro described how some life-settlement arrangements would come under her agency's jurisdiction and assured Kohl that the SEC "will look carefully at the issues surrounding the registration of life settlement providers and brokers and the potential need to regulate more specifically in this area." 

Senator Martinez said that the life settlement industry ``smells like and sounds like'' the subprime mortgage market which collapsed last year. The Senate Aging Committee is expected to continue its investigation into this area.
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Survey Reveals Future Senior Living Residences 
Will Utilize Smart Home Technology

Older adults who anticipate moving to a senior living community can look forward to maintaining their independence through "smart home" technology and wireless connectivity, according to a recent survey of senior living trends released by Mather LifeWays Institute on Aging in collaboration with Caring Communities Shared Services and Life Services Network (LSN) of Illinois, the state affiliate of the American Association of Homes and Services of the Aging, and the Assisted Living Federation of America. 

The survey provides insight into how future generations will be served in senior living communities, including expanded home health care, wellness programs, and "green" designs. "The results of this survey are significant because there are few published studies that examine trends in programs, amenities, and environments among aging services providers," said Mary Leary, President and CEO, Mather LifeWays. 

The survey, conducted last fall, includes responses from 107 senior living organizations in 13 states, representing 435 senior living communities. "The survey results tell us that it will not be business as usual for senior living communities in the years ahead," said Linda Hollinger-Smith, Vice President, Mather LifeWays Institute on Aging. "It's clear that with the projected decline in the 75 to 84 age population over the next decade, senior living organizations will need to identify their 'niche' to attract this generation prior to the arrival of the Baby Boomers." 

Survey respondents identified the top emerging trends, including: 

Maintaining Resident Independence 

• Incorporating "smart home" technology and wireless connectivity into senior living residences 
• "Bringing home health care, tele-health technology, geriatric assessment services, and non-medical home care services into senior living communities to promote quality of life as one "ages in place" 

Expansion of Programs/Services Outside of Senior Living Communities 

• Providing home health and adult day care services
• Delivering services to older adults in their homes through programs such as the "Beacon Hill" model 

Wellness and Lifelong Learning for Senior Living Residents 

• Integrating and expanding wellness programs into senior living design including wellness/healing gardens, health spas, therapy pools, putting greens, and indoor aquatic centers 
• "Providing web-based education and lifelong learning programs for residents 

Environmentally Aware Senior Living Communities 

• Obtaining LEED certification to demonstrate new construction and renovations are achieving "green" standards 
• Building "small house" models for residents in long-term care settings: Small houses are self-contained buildings for small numbers of residents, organized in a way to maximize normal living environments and routines, resident autonomy, sense of community, and quality of life 

Overall, senior living communities with 300 or more units appear to be leading the way in terms of current and future planning in many areas of programs, services, amenities, and environmental issues compared to smaller senior living communities. 

Senior living providers indicate they will continue to expand partnerships in order to meet and exceed expectations of the next generation of older adults. Potential partnerships include other Continuing Care Retirement Communities, colleges/universities, for-profit ventures, Naturally Occurring Retirement Communities, active adult communities, and state and local government agencies. 

The Mather LifeWays Institute on Aging in Evanston, Ill., was founded as a way to provide much-needed research and education for the health professionals who serve older adults. Initiatives focus on person-centered care and effective memory support addressing program assessment tools, emergency preparedness, and reducing workforce turnover rates. http://www.matherlifeways.com/re_researchandeducation.asp
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Consumer Reports Offers Guidance on Purchasing 
and Owning a Hearing Aid

A new Consumer Reports investigation into hearing aids has found that consumers pay high prices and get mediocre fittings. The new report, which will appear in the July issue of the magazine, is the first such report on hearing aids since 1992. 

For its report, Consumer Reports followed a dozen hearing-impaired patients for six months as they shopped for and used hearing aids; lab-tested the features of 44 hearing aids; and conducted a national survey of 1,100 people who had bought a hearing aid in the last three years. The survey was conducted by the Consumer Reports National Research Center. 

Consumer Reports' shoppers purchased two pairs of hearing aids each, or 48 aids in all, ranging from $1,800 to $6,800 per pair, including professional fitting and follow-up services, in the New York City metropolitan area. The right fit did not come easily. Consumer Reports had audiologists check to see how well providers fit shoppers' hearing aids to their individual hearing loss. Two-thirds of the 48 aids purchased were misfit: They amplified too little or too much. And yet, according to the national survey, a resounding 73% of hearing aid users were highly satisfied with their aids, suggesting many individuals may be so pleased with improved hearing that they do not seek out fine tuning of their aids, potentially missing out on an even better fit. 

The survey also underscored the lack of information that's reaching consumers about which features are valuable and which aren't. One-fourth of respondents to the Consumer Reports survey said they didn't know whether their aids had feedback suppression, and a third didn't know whether they had directional microphones. Both features can be critical to performance. 

"Buying a hearing aid is not for the faint of heart. And it's not like buying a piece of electronics and walking away. In addition to purchasing the hearing aids, you're purchasing a service that comes with a complicated contract and you're entering into a relationship with a provider, so you need to be comfortable with that person. And to get the best results, you have to take the time to adjust to the aids and let your provider know about any problems," said Tobie Stanger, senior editor, Consumer Reports. 

Consumers need to decide which type of hearing aid is best for them, and which product features make sense, keeping in mind that many features can add a lot of cost but may be of little value to some people. The magazine noted that consumers don't always get the advice they need to make a good purchase decision. It also reports that the average markup was 117% over wholesale.                                                                             Top

Kiplinger's 2009 Retirement Planning Guide Now on Newsstands

Kiplinger's Personal Finance magazine as just published its special Retirement Planning 2009 - Your Guide to a Secure Retirement. It carries stories about staying on top of your finances when you get laid off, reverse mortgages and how they are getting better, little known benefit choices to maximize your Social Security income, helping parents move to a retirement community, and a complete guide to Medicare. This issue will be available until the end of September. It can be purchased in book stores, on newsstands, and online at: https://www.kiplinger.com/orders/krpg/index.html.                 
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New Book: The Successful Retirement Guide

The Successful Retirement Guide by author Kevin Price provides a wealth of information to help identify the activities that will help you remain intellectually, socially and physically engaged with life, regardless of your resources. The 344-page book is loaded with ideas and opportunities to explore ways to make your retirement a successful one. 

It is a book about learning, appreciating, growing, playing, making and giving back. It also discusses the reason for doing these things beyond the simple enjoyment they may bring. The book reviews hundreds of ideas for engaging retirement activities in an educational and entertaining fashion and provides references to sources of additional information. Following the introductory material it uses an alphabetical organizational format to present the ideas. It can be read at length but it is also easy to read in short sittings. 

For most of the hundreds of activities listed there are references - books, magazines, web sites and other resources that can provide additional information. The book has five appendices: Life Expectancy Calculators, Senior Olympics, Collectibles, Veterans' Organizations, and Volunteer Considerations and Opportunities. You can read more about the $19.95 book and the author by going to: http://www.successfulretirementguide.com/index.html.
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