By: Shawn Rader
The World War II generation was raised in the depths of the Great Depression, and came out the other side with a strong penchant for saving their money. Many accomplished the goal of retiring with no mortgages, and in addition were blessed with jobs which furnished them with a pension income in their retirement years. These, our parents and grandparents, were thus able to give rise to the growth of the assisted living facility / and memory care business.
As they grow into their late 80’s and 90’s, they require the highest level of care, and pay between $4000 and $6000 per month on average for it.
The next generation moving rapidly into retirement is the Baby Boomers, and their ability to afford such care has to be in question.
As eHealth, Inc. stated in a 2012 report, 64% of Boomers say they are not prepared for retirement. US News & World Report found that 36% of Boomers in retirement depend on social security for 90% of their income after retirement, with a median income of $27,700.00 for men and $15,360.00 for women.
So even with what AARP says is 8,000 Boomers turning 65 daily for the next 18 years, which of them are going to be equipped to pay the freight for long term care? Has the industry already passed its glory days of expansion without end? Or will new means of communal living or other arrangements arise which might change the type and level of care but make the services affordable?
Food for thought.