The Elder Economic The Elder Economic Security Standard™ Security Standard™

Index for ConnecticutIndex for Connecticut

March 6, 2009March 6, 2009

Alison GottliebAlison GottliebGerontology Institute Gerontology Institute

UMass BostonUMass Boston

Goals of the IndexGoals of the Index

• To measure the cost of living for older To measure the cost of living for older adults in today’s economy who are adults in today’s economy who are “aging in place” in their own homes“aging in place” in their own homes

• To reflect local experiences in a form To reflect local experiences in a form that invites comparisons across that invites comparisons across communitiescommunities

Conceptual principles of the Conceptual principles of the IndexIndex

• Focuses on Focuses on economic securityeconomic security

• Recognizes that geographic geographic variabilityvariability in cost of living is important in assessing security

• Focuses on Focuses on limitedlimited but but targeted targeted segmentationsegmentation

Assumptions of the Index

Community living

Residential independence

Age 65 plus

Medicare coverage

Absence of paid work

Components of the Standard

Housing

Food

Transportation

Health Care

Miscellaneous

As an add-on to the Index: home and community-based long-term care

Statewide Index calculated for Connecticut

Example 1: Connecticut Statewide, 2008

Elder Person Elder Couple

Monthly Costs

Owner, no mortgage

Renter, 1 bedroom

Owner with mortgage

Owner, no mortgage

Renter, 1 bedroom

Owner with mortgage

Housing $657 $909 $1,483 $657 $909 $1,483

Food $234 $234 $234 $430 $430 $430

Transportation $209 $209 $209 $368 $368 $368

Health Care $385 $385 $385 $770 $770 $770

Miscellaneous $297 $297 $297 $445 $445 $445

Index per month

$1,782 $2,034 $2,608 $2,670 $2,922 $3,496

Index per year

$21,383 $24,408 $31,296 $32,039 $35,064 $41,952

Example 1: Connecticut Statewide, 2008

Elder Person Elder Couple

Monthly Costs

Owner, no mortgage

Renter, 1 bedroom

Owner with mortgage

Owner, no mortgage

Renter, 1 bedroom

Owner with mortgage

Housing $657 $909 $1,483 $657 $909 $1,483

Food $234 $234 $234 $430 $430 $430

Transportation $209 $209 $209 $368 $368 $368

Health Care $385 $385 $385 $770 $770 $770

Miscellaneous $297 $297 $297 $445 $445 $445

Index per month

$1,782 $2,034 $2,608 $2,670 $2,922 $3,496

Index per year

$21,383 $24,408 $31,296 $32,039 $35,064 $41,952

In Connecticut, the statewide averages for housing costs range from $657 to $1,483. These costs do not differ between singles and couples.

Example 1: Connecticut Statewide, 2008

Elder Person Elder Couple

Monthly Costs

Owner, no mortgage

Renter, 1 bedroom

Owner with mortgage

Owner, no mortgage

Renter, 1 bedroom

Owner with mortgage

Housing $657 $909 $1,483 $657 $909 $1,483

Food $234 $234 $234 $430 $430 $430

Transportation $209 $209 $209 $368 $368 $368

Health Care $385 $385 $385 $770 $770 $770

Miscellaneous $297 $297 $297 $445 $445 $445

Index per month

$1,782 $2,034 $2,608 $2,670 $2,922 $3,496

Index per year $21,383 $24,408 $31,296 $32,039 $35,064 $41,952

Food costs are $234 for singles and $430 for couples. The costs do not differ by residential setting. There are economies of scale for couples v singles so the costs do not double.

Example 1: Connecticut Statewide, 2008

Elder Person Elder Couple

Monthly Costs

Owner, no mortgage

Renter, 1 bedroom

Owner with mortgage

Owner, no mortgage

Renter, 1 bedroom

Owner with mortgage

Housing $657 $909 $1,483 $657 $909 $1,483

Food $234 $234 $234 $430 $430 $430

Transportation $209 $209 $209 $368 $368 $368

Health Care $385 $385 $385 $770 $770 $770

Miscellaneous $297 $297 $297 $445 $445 $445

Index per month $1,782 $2,034 $2,608 $2,670 $2,922 $3,496

Index per year $21,383 $24,408 $31,296 $32,039 $35,064 $41,952

Transportation costs are $209 for singles and $368 for couples. The costs do not differ by type of residential setting. There are economies of scale for couples v singles so the costs do not double.

Example 1: Connecticut Statewide, 2008

Elder Person Elder Couple

Monthly Costs

Owner, no mortgage

Renter, 1 bedroom

Owner with mortgage

Owner, no mortgage

Renter, 1 bedroom

Owner with mortgage

Housing $657 $909 $1,483 $657 $909 $1,483

Food $234 $234 $234 $430 $430 $430

Transportation $209 $209 $209 $368 $368 $368

Health Care $385 $385 $385 $770 $770 $770

Miscellaneous $297 $297 $297 $445 $445 $445

Index per month

$1,782 $2,034 $2,608 $2,670 $2,922 $3,496

Index per year $21,383 $24,408 $31,296 $32,039 $35,064 $41,952

Health care costs are $385 for singles and $770 for couples. The costs do not differ by residential setting. There are no economies of scale for couples v singles so the costs double among elder couples.

Example 1: Connecticut Statewide, 2008

Elder Person Elder Couple

Monthly Costs

Owner, no mortgage

Renter, 1 bedroom

Owner with mortgage

Owner, no mortgage

Renter, 1 bedroom

Owner with mortgage

Housing $657 $909 $1,483 $657 $909 $1,483

Food $234 $234 $234 $430 $430 $430

Transportation $209 $209 $209 $368 $368 $368

Health Care $385 $385 $385 $770 $770 $770

Miscellaneous $297 $297 $297 $445 $445 $445

Index per month

$1,782 $2,034 $2,608 $2,670 $2,922 $3,496

Index per year $21,383 $24,408 $31,296 $32,039 $35,064 $41,952

Miscellaneous costs are estimated at $297 for singles and $445 for couples. The costs do not differ by residential setting.

The “Five Connecticuts” Concept

• Demographers at the UConn State Data Center developed five groupings of Connecticut towns, based on common social and economic conditions

• The Elder Economic Security Index presents five towns, one in each of these groupings

5 CTs Population Distribution 2010

5 CT Examples for Today

• Urban Periphery - Manchester• Rural - Putnam• Wealthy - Westport

Example 2: Urban Periphery - Manchester

Elder Person Elder Couple

Monthly Costs

Owner, no mortgage

Renter, 1 bedroom

Owner with mortgage

Owner, no mortgage

Renter, 1 bedroom

Owner with mortgage

Housing $612 $806 $1,234 $612 $806 $1,234

Food $274 $274 $274 $503 $503 $503

Transportation $210 $210 $210 $370 $370 $370

Health Care $385 $385 $385 $770 $770 $770

Miscellaneous $296 $296 $296 $451 $451 $451

Index per month

$1,776 $1,971 $2,398 $2,705 $2,900 $3,327

Index per year $21,314 $23,646 $28,779 $32,463 $34,795 $39,928

Example 2: Rural - Putnam

Elder Person Elder Couple

Monthly Costs

Owner, no mortgage

Renter, 1 bedroom

Owner with mortgage

Owner, no mortgage

Renter, 1 bedroom

Owner with mortgage

Housing $507 $681 $1,130 $507 $681 $1,130

Food $234 $234 $234 $430 $430 $430

Transportation $242 $242 $242 $426 $426 $426

Health Care $385 $385 $385 $770 $770 $770

Miscellaneous $273 $273 $273 $427 $427 $427

Index per month

$1,641 $1,815 $2,264 $2,559 $2,733 $3,182

Index per year $19,690 $21,780 $27,167 $30,709 $32,799 $38,186

Example 3: Wealthy - Westport

Elder Person Elder Couple

Monthly Costs

Owner, no mortgage

Renter, 1 bedroom

Owner with mortgage

Owner, no mortgage

Renter, 1 bedroom

Owner with mortgage

Housing $1,157 $1,314 $3,109 $1,157 $1,314 $3,109

Food $280 $280 $280 $515 $515 $515

Transportation $200 $200 $200 $353 $353 $353

Health Care $385 $385 $385 $770 $770 $770

Miscellaneous $404 $404 $404 $559 $559 $559

Index per month

$2,427 $2,584 $4,379 $3,354 $3,511 $5,306

Index per year $29,122 $31,007 $52,551 $40,245 $42,130 $63,674

Summary of results

• Costs are lowest for people who live in their own homes with mortgage paid off

• Costs are highest for people who are still paying off a mortgage

• For singles, housing is the highest cost and health care is the second most sizable cost

• For couples, health care can be the highest cost

A few words about long-term care

• Our estimates are for home and community-based long-term care services, – not nursing home care

– not settings that combine housing and services such as assisted living

• Costs of home and community-based long-term care services are presented for three service packages along the continuum of care.

The continuum of care needs

Level of need: Hours per week of assistance:

Low 6

Medium 16

High with adult day care 36

High without adult day care

36

Estimated annual costs for LTC

Level of need: Cost at private pay rate:

Low $7,502

Medium $19,994

High with adult day care

$38,790

High without adult day care

$44,518

Estimated total costs: single older renter in the State of Connecticut

Level of need: Annual Expense:

None $24,710

Low $32,213

Medium $44,705

High with adult day care $63,500

High without adult day care $69,228