Is there really a demand for senior living?
We all see Assisted Living, Skilled Nursing and Memory Care facilities popping up everywhere. It’s natural to think this makes sense, since Baby Boomers started reaching retirement age a few years ago.
However most recent retirees don’t need full time medical care. Due to improved medical care and healthier life styles of less smoking, less calories and more physical activity retirement isn’t end of life like in past generations. Retirement is time to enjoy an active lifestyle that may not have been possible while devoted to raising a family and building a career.
We cannot ignore the fact that since Baby Boomers started hitting retirement age in 2011 there has been a steady increase in US citizens over 65. Currently 4,000 Baby Boomers reach retirement age each month in the Kansas City metro. Nationwide, 10,000 people celebrate their 65th birthday every day.
So when will all these retirees start requiring Assisted Living, Skilled Nursing and Memory Care Facilities?
According to The Senior Housing 2015 Outlook published by IRR, an average person currently enters a senior living facility after their 80th birthday. The first Baby Boomer – a person born in 1946 will turn 80 ten years from now in 2026.
Below is a table of Americans projected to turn 80 in each decade through 2050 provided by the US Census Bureau.
Going forward, retirees will probably enter a care facility later in life due to continual improvement in healthcare, education and healthy lifestyle. However if the entry age remains at 80, we will see a dramatic increase in demand starting in 2026.
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