Connecticut has a lot to offer active adults; with its small towns featuring New England charm scattered throughout the state and large cities like New York and Boston an easy train ride away Connecticut has something for every retiree. The southernmost state in New England, Connecticut boasts four distinct seasons and a diverse landscape, including both mountainous and seaside terrain. The Connecticut River, Thames River, and ports along Long Island Sound have given Connecticut a strong maritime tradition. The state also has a long history of hosting the financial services industry, including insurance companies in Hartford and hedge funds in Fairfield County.
Living in Connecticut offers a wide range of activities and attractions that appeal to seniors. The stunning Connecticut shoreline is home to an array of seaside activities in quaint towns, like Milford, Guilford, Essex, Kent, and Mystic. The Appalachian Trail runs through Connecticut’s mountains and is especially popular during the changing of the leaves in the fall. Connecticut’s casinos represent two of the largest casino destinations in the world. New Haven is home to the Yale University Art Gallery and is one of the most groundbreaking cities for architecture and design. Popular Connecticut attractions also include the Mark Twain house in Hartford, the Submarine Force museum in Groton, Gillette Castle State Park in East Haddam, and Weir Farm, the only national park dedicated to American painting. For even more metropolitan activities the convenient train system in Connecticut services both New York and Boston.
Connecticut retirees enjoy Connecticut’s moderate climate. Connecticut lies at the crossroads where the New England climate zone end and the Middle Atlantic climate zone begins. The average January temperature is around 26 °F (−3 °C), and most of the state receives about 35 to 45 inches (890 to 1,145 mm) of snow each year. In the northwest, however, the average snowfall exceeds 75 inches (1,900 mm). In deep summer the flow out of the Bermuda High pumps warm tropical air into the East Coast, Summers temperatures are normally in the 80’s and occasionally reach the 90’s and low 100’s
Taxes in Connecticut
The Connecticut (CT) state sales tax rate is currently 6.35%, with no additional local taxes. Connecticut also has an income tax that 3% and ranges up to almost 7% for the highest income earners. ($500,000+ for individuals, $1 mil+ for joint filers)
Connecticut’s income tax excludes 75% or 100% of federally taxable Social Security income, depending on the taxpayer’s federal adjusted gross income. Except for Social Security, railroad retirement, and military retirement benefits, Connecticut’s state income tax treats income from public and private pensions the same as any other income, the state has no other special exemptions for pension income.
Connecticut property taxes are on the higher end nationally at 2.14%.
Connecticut Life Plan Communities
Planning ahead for the later stages of retirement can help you and your loved ones avoid difficult, and often costly, situations in the future. Today’s seniors have many housing options, deciding where to live is one of the most important and complex decisions facing retirees
Continuing care retirement communities in Connecticut, also known as CCRCs or “Life Plan Communities,” may be a good option for seniors age 55+ who want a residence that allows them to be independent and active today but can provide for their future healthcare needs. Connecticut CCRCs are the only type of retirement community that offer residents access to a full continuum of care, including assisted living, memory care and skilled nursing care, in addition to independent living.
Connecticut CCRCs generally offer a collection of cottages, apartments, and townhomes, and offer amenities such as convenience stores, banking services, walking trails, gardens, golf courses, swimming pool, fitness center, beauty/barber shops, and guest accommodations. Most communities also include common activity areas such as activity and craft rooms, a restaurant-like dining room, an assisted living facility, a library, and a nursing home.
Regulating Connecticut CCRCs
CCRC regulation varies from state to state. They are regulated by state divisions such as insurance, financial services, aging or elder services, or social services. Of the 38 states that regulate CCRCs the mandatory requirements and degree of oversight can vary drastically from one state to another.
CCRCs in CT are regulated by the State Department of Social Service, and CCRCs must submit a written disclosure statement and audited financial statements annually. There is also a Bill of Rights for Residents of Continuing Care Retirement Communities in CT.
Healthcare-related regulations are different from financial regulation of CCRCs and Lifecare communities in Connecticut. For instance, if the healthcare facility located on a CCRC campus is Medicare or Medicaid- certified it will be regulated by the appropriate agency within the state. But these agencies do not regulate the overall operations, residency contracts, and financial management of the community.
Entry Requirements in Connecticut CCRCs
Connecticut Life Plan Communities or CCRCs have entry requirements, they vary by location but may include some or all of the following:
- Minimum age requirements as allowed by the Housing for Older Persons Act.
- Entry fee to cover the housing unit’s cost and other services and amenities, including contractually provided access to health care. The entry fee may also help keep monthly services fees lower than they might be at a comparable rental community.
- Entry fee refunds for CT CCRCs must be paid within three years from the time of the triggering event.
- Assets and savings equal to a multiple of the entry fee. A typical range is between 2-4 times the entry fee, but this can vary.
- Monthly income equal to a multiple of the monthly service fee. The range is usually similar to that required for assets and savings.
- Medical reviews. Providers will often request medical records, talk with a prospective resident’s primary care physician, or request a health exam. The specific type of contract offered by the community will determine the degree of emphasis placed on this requirement.
- Medicare and possibly a Medicare supplement policy, or a similar private-pay plan
- Will, healthcare power of attorney, and durable power of attorney.
CCRC Entry Fees in Connecticut
CCRCs in Connecticut require an entry fee. The entry fee is required for several reasons. Primarily it secures a resident’s contractual and priority access to a continuum of care. Many CCRCs- particularly non-profit providers- offer a financial assistance or endowment fund to help ensure that if a resident runs out of money due to a longer than average stay in the healthcare facility, or some other unforeseen circumstance, they will not be forced to leave the community. Some portion of the entry fee may go towards this endowment fund.
Finally, the money received from entry fees is also used to help pay down, or limit, the amount of debt required for development, expansion, or long-term capital projects, which benefits the residents and helps keep the community attractive and competitive in the marketplace.
Is a Connecticut CCRC Right For You?
Are you or a loved one ready to take the next step in your housing search? myLifeSite will equip you with the information you need and questions to ask as you begin contacting Life Plan communities directly. Our independent reports provide everything you need to make an informed decision including retirement community pricing, important contract details, healthcare aspects, and more.
Updated May 2021