A speaker at an educational workshop that I attended on June 10 noted that one of the things Baby Boomers are seeking is the Fountain of Youth.
The speaker was Nancy Losben, who is Chief Quality Officer for Omnicare, Inc. She was speaking on the “Future of Assisted Living – Where Are We Headed.”
Given the information that I have heard at conferences and have read on-line in recent months, I can understand why Boomers would desire a magical way to restore their youth. Baby Boomers are expected to live longer, but be less healthy than previous generations.
At the 2015 Boomer Business Summit, Terry Clark of the UnitedHealth Group noted that two-thirds of seniors have at least two chronic health conditions. The chronic conditions include diabetes, obesity, hypertension, high cholesterol and arthritis.
Earlier in the day, Lisa McCraken of Ziegler pointed out that addiction and mental health issues, including anxiety and depression, are more prominent in the Boomer population.
Among individuals 55 to 64 years of age, an increase in moderate to severe psychological distress was reported in virtually every income group, said a story by Dave Johnson on the coming Baby Boomer health crisis was posted last month on the Time Inc. Network. The story is based on data from the U.S. Center for Disease Control and Prevention. Only among individuals in the highest income category was no increase reported. (Report)
The story goes on to say the Baby Boomers are taking more pills than ever before. Being a Boomer, my thoughts turned to the Rolling Stones hit “Mother’s Little Helper. The song was released nearly 50 years ago in 1966. The lyrics talk about “what a drag it is getting old,” how mothers turn to a “little yellow pill” to help get them through the day, and how they beg the doctor for more.
All signs indicate that the acuity level of residents moving into senior living and assisted living communities will increase as Baby Boomers will be coming to us with greater physical and mental health care needs.
One of the challenges will likely be the ability of a significant percentage of Baby Boomers to afford living in a senior or assisted living community.
Socioeconomic data from Nielsen indicates that as of 2014 the household income for more than 60% of the 75+ population in the United States is less than $35,000.
CBS Money Watch posted a story in August of last year that noted that a Shocking Number of Americans Have NO Retirement Savings.
Two months later, in October of 2014, a story posted on the CNN Money website reported that seniors in 49 states were struggling to afford retirement.
According to a study of residents in senior living and assisted living communities by the Center of Retirement Research at Boston College, more than 25% had a net worth of less than $50,000 and 40% had a net worth of less than $100,000.
Residents expressed satisfaction with the cost and services; they thought they were getting value for their dollar.
Between 55% and 70% of the residents expressed concern about their ability to afford the monthly fees in the months ahead. For as many as 30%, the concern was considerable.
Only 16% of the residents in assisted living reportedly had long-term care insurance.
For a variety of reasons such as joblessness and their own family obligations, children may not be able to provide financial assistance, Nancy Losben said.
Baby Boomers may want larger apartments, more dining choices and more amenities.
Financially, however, a senior who earns the U.S. Census indicated mean income of $2,240 a month ($26,880 a year) and has less than $50,000 a year in assets would on average be able to afford living in an assisted living community for less than 13 months in the Midwest; no more than eight months in the Northeast; less than 19 months in the South; and less than 14 months on the West Coast.
According to the Assisted Living Federation of America (ALFA), the average length of stay is 22 months.
It is a situation the needs to be addressed.