Presentation of Findings

Elder Economic Security Initiative™

Stacy Sanders Ellen BruceField Manager Associate DirectorElder Economic Security Initiative Gerontology InstituteWider Opportunities for Women University of Massachusetts – Boston 202-464-1596 617-287-7315ssanders@wowonline.org Ellen.Bruce@umb.edu

Elder Economic Security Initiative™ Findings

Today’s Goals:

To provide an overview of findings of the Connecticut Elder Index

To provide an overview of the policy analysis findings of “Elder Living on the Edge”

Elder Economic Security Standard Index™

Components of the Index:Housing

Food Transportation

Health CareMiscellaneous

Add-On to the Index: Home and Community-Based Long Term Care Packages

Connecticut Statewide Index

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

The “Five Connecticuts” Concept

Demographers at the University of Connecticut State Data Center (CtSDC) developed five groupings of Connecticut towns, based on common social and economic conditions, including: IncomePovertyPopulation Density

The “Five Connecticuts” Concept

The Elder Economic Security Standard™Index presents five towns, one in each of these groupings: Urban Core

Urban PeripherySuburbanWealthyRural

Example: 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: 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: 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 Index Findings

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

Add-On: Annual Long Term Care Costs

Level of need: Cost at private pay rate:

Low (6 hours) $7,502

Medium (16 hours) $19,994

High with adult day care (36 hours)

$38,790

High without adult day care (36 hours)

$44,518

Add-On: Annual Long Term Care Costs

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

Annual Statewide Index + Add-On Long Term Care =

Elders Living on the Edge: Policy Findings

FINDING: FINDING: Social Security payments alone fail to

provide economic security. Furthermore, even

those with retirement incomes that include

individual retirement accounts, private savings

and pensions may fall short of economic security.

Elders Living on the Edge: Policy Findings

Though never intended to be the sole source of

income in retirement, nearly 20% of

Connecticut elders and 40% of Connecticut’s

older women rely almost entirely on Social

Security.

Elders Living on the Edge: Policy Findings

Elders Living on the Edge: Policy Findings

FINDING: FINDING: Across all of the representative

communities of the five Connecticuts, housing is

the greatest determinant of elder economic

security.

Elders Living on the Edge: Policy Findings

More than one in five (22%) older Connecticut residents are paying off mortgages. These elders will spend nearly two and half times more on housing than older homeowners without a mortgage.

Typical monthly rent for a 1-bedroom apartment varies across Connecticut, from $681 in Putnam (Rural) to $1314 in Westport (Wealthy).

Elders Living on the Edge: Program Modeling

Evaluating the Impact of Support Programs:

Consider incomes common in a given community.

Examine the individual and cumulative impact of

the program’s benefits on overall economic

security.

Using the Index as a benchmark for evaluation!

Elders Living on the Edge: Case Study # 1

Elders Living on the Edge: Case Study # 1

Elder woman receives… Elder woman receives… • Food Assistance: SNAP/Food Stamps

• Rx Assistance: Low Income Subsidy of Medicare Part D

• Medical Assistance: Medicare Savings Program (QMB)

• Energy Assistance: CEAP

• Housing Assistance: HUD Voucher Program, RAP or

Elderly-RAP

Elders Living on the Edge: Case Study #1

Elders Living on the Edge: Policy Findings

FINDING: FINDING: Housing, income and medical

assistance are the public supports most effective

in filling the gap between incomes and the cost

of living for older adults.

Elders Living on the Edge: Concluding Remarks

Today’s economic crisis creates a renewed opportunity to raise awareness about these issues and promote positive change for elders across Connecticut. We make this framework and these tools available to support the great work you’re already doing

and to inspire new and innovative thinking!

THANK YOU! We look forward to working with you!