By Shannah Koss, EVP of Community Development
August 2018
The Aging Boomer Generation in Every Community is a Critical Asset
We will perhaps all be tired of the constant references to the Boomer generation as we age. However, until we understand what this fundamental and sustained shift in the composition of our population means for our communities, economy and healthcare it may need to be our mantra. It is similar to the constant reference to Millennials and our penchant for labeling and separating generations. This tendency is NOT in our best interest.
The Boomer generation (people born from 1946 to 1964) will all be 65 or older in 2030. Although some may say 65 is the new 45, there should be urgency in finding a new path for older adults as a more vital and integrated segment of every community. There are many characteristics about the Boomer population as they approach or reach retirement age that warrant a different approach.
- Boomers are the most financially well off population segment – In 2017, Boomers controlled 70% of all disposable income and owned 80% of all money in savings and loan
- In 2013, Boomers started 24% of all new businesses
- The generation is more diverse and 63% of Boomer households have at least 1 person in the workforce
- Boomers are expected on average to be sicker than prior older adults due to higher rates of diabetes and obesity and less active life styles
- The old-age dependency ratio will hit 35 for every 100 working age adults (18-64) and the market of paid caregivers is shrinking
- Boomers have been the predominant caregivers for their aging parents, but this model is unlikely for the Boomers as we age
- Boomers almost unanimously want to age-in-place, in their homes and their communities
Financially, communities and commercial markets cannot afford to ignore this growing population. Even though they are one of the wealthiest population segments, the cost of healthcare in the US and the absence of long term care coverage means 50% or more of those 65 and older will not be able to afford anticipated healthcare costs. “The average 65-year-old couple in retirement can expect to pay $275,000 in out-of-pocket expenses for health care,” according to Fidelity Investments.
A Call to Arms
How do we set our society on a path where older adults are valued and engaged? How do we support individuals and organizations that are helping older adults age in place? These are critical questions that could have many viable answers in the coming years. The approaching decade will ideally be a critical turning point. Emerging trends highlight the local nature of needed change. It will depend upon whether and how communities embrace and leverage the change in demographics.
Too often the concerns about support for Boomers focus on the health care needs and the care delivery costs and challenges. Recognition that clinical care is a relatively small determinant of health outcomes means we need to look at how we grow and fortify the living conditions that can not only bend the healthcare cost curve, but also improve the economics and living conditions for all generations. Reimagining communities is a team sport with team benefits.
The following examples may help spark your imagination, but they are only the tip of the iceberg:
Age-friendly communities and Villages are leading the way in terms of local social engagement and daily living support like transportation and grocery shopping or meal preparation. These models and many faith-based initiatives all rely on neighbors helping neighbors. (More background information on aging in place models can be found here.)
- Intergenerational programs that connect older adults with college students, teens, school age and pre-schoolers on a whole array of activities bring benefits to both ends of the population spectrum. The older adults can be housemates, mentors, readers and greeters. Kids and young adults can also be readers, tech advisors, friendly visitors, and if 18 or older housemates.
- Communities that are more walkable, with more accessible services, appeal to the entire age spectrum and better enable a range of assistive devices — strollers, walkers, wheel chairs and automated scooters.
- Communities focused on affordable housing and rethinking zoning laws to enable multi-family and multigenerational living that offer older adults more housing options.
- Finally, programs supporting older entrepreneurs can help create jobs and foster new businesses that are more likely to succeed.
Healthy People 2030 a Possible Framework for Change
Healthy People 2030 Objectives or some similar framework with a set of national goals may offer a method for promoting Aging in Community. “Every decade, the Healthy People initiative develops a new set of science-based, 10-year national objectives with the goal of improving the health of all Americans.” Healthy People 2020 had limited objectives that would really promote aging in community. Objectives need to be tied to viable data sources for tracking progress. This might be a hurdle to overcome, but there may also be a wealth of data, if we all think creatively about what we’re trying to advance. This fall, the Department of Health and Human Services will publish proposed objectives for public comment. We encourage everyone to participate and highlight the need for aging-in-community objectives and interventions. It is an ideal time to start the nation-wide dialogue on how to advance this national goal.