Drawbacks of Retiring in Connecticut
by Brigitte Yuille
June 06, 2015
Choosing Connecticut as a place to retire is a personal preference. It requires careful planning. Older adults will need to analyze the advantages and disadvantages to determine whether a retirement in Connecticut is the right fit. The state offers some great benefits, but it also has some drawbacks.
- Weather - Many retirees look forward to year-round warm weather, sun, and clear blue skies so they can spend time enjoying outdoor activities. Connecticut has all four seasons. Its inland climate is humid continental and its shoreline is not only humid, but it is also subtropical. The state has a significant amount of annual precipitation. The summers are hot and humid with frequent thunderstorms, and the winters fluctuate from mild to extreme, with temperatures dropping well below zero.
- Tax Burden - Retirees need to compare the types of taxes they will have to pay based on their location. These taxes include state, income, property, and sales. Connecticut taxes retirement income. Whether or not the state will fully or partially tax Social Security income will depend on the taxpayer’s adjusted gross income (AGI). The AGI is used to figure out federal income taxes. In addition, the state typically taxes pension income. Railroad retirement income is fully exempt from the state’s income tax, and half of military retirement income is taxed.
- Cost of Living - Connecticut is an expensive place to live. A family a four must have an annual household budget of $64,689 and a single adult must have $23,050 in order to survive, according to the United Way ALICE 2014 report. The National Center for Policy Analysis, a nonpartisan public policy research organization, found that a large amount of seniors’ expenses are going toward mortgage or home equity loan interest payments and healthcare. Therefore, developing an accurate picture of your monthly income and expenses is needed to assess your ability to follow thru with your retirement in Connecticut.
- Long Term Care - Even though most long term care can occur in different settings, many seniors prefer to stay at home. The cost however is steadily rising. Genworth’s recent Cost of Care survey shows that the median annual rate for care services in Connecticut is high compared to the U.S. overall. The median rate for help with household tasks in the U.S. is $44,616, while in Connecticut it’s $45,760. Acquiring a home health aide for non-medical care in the U.S. is $45,760 and $50,336 in Connecticut. Adult day health care, such as social and structured activities, in the U.S. is $17,904 and $20,150 in Connecticut. Assisted living in the U.S. is $43,200 and $66,900 in Connecticut. A semi-private room at a nursing home in the U.S. is $80,300 and $146,000 in Connecticut. Private rooms at a nursing home in the U.S. are $91,250 and $158,775 in Connecticut.
- Nursing Homes - Connecticut is among the 14 states that has increased its number of nursing homes over a period of five years, according to the Centers for Medicare and Medicaid Services’ 2013 Nursing Home Data Compendium. However, the Families for Better Care, a watchdog of long-term care facilities, indicates improvement is needed. It gave Connecticut an overall letter grade of a “D” according to its Nursing Home Report Card. It found the state had facilities with deficiencies, an inability to have above average health inspections, and poor direct care staffing hours per resident.