The Elder Economic Security Standard™ Index for Connecticut March 6, 2009 Alison Gottlieb Gerontology Institute UMass Boston

Goals of the Index To measure the cost of living for older adults in today’s economy who are “aging in place” in their own homesTo measure the cost of living for older adults in today’s economy who are “aging in place” in their own homes To reflect local experiences in a form that invites comparisons across communitiesTo reflect local experiences in a form that invites comparisons across communities

Conceptual principles of the Index Focuses on economic securityFocuses on economic security geographic variabilityRecognizes that geographic variability in cost of living is important in assessing security Focuses on limited but targeted segmentationFocuses on limited but targeted segmentation

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 PersonElder 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 $430 Transportation$209 $368 Health Care$385 $770 Miscellaneous$297 $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 PersonElder 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 $430 Transportation$209 $368 Health Care$385 $770 Miscellaneous$297 $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 PersonElder 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 $430 Transportation$209 $368 Health Care$385 $770 Miscellaneous$297 $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 PersonElder 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 $430 Transportation$209 $368 Health Care$385 $770 Miscellaneous$297 $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 PersonElder 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 $430 Transportation$209 $368 Health Care$385 $770 Miscellaneous$297 $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 PersonElder 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 $430 Transportation$209 $368 Health Care$385 $770 Miscellaneous$297 $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 PersonElder 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 $503 Transportation$210 $370 Health Care$385 $770 Miscellaneous$296 $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 PersonElder 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 $430 Transportation$242 $426 Health Care$385 $770 Miscellaneous$273 $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 PersonElder 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 $515 Transportation$200 $353 Health Care$385 $770 Miscellaneous$404 $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: Low6 Medium16 High with adult day care36 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