Silver Tsunami Retirement Crisis: Will There Be Enough Room for Everyone?
Since 2010, 10,000 Americans have turned 65 every day, with that daily number continuing to increase. By 2050, the U.S. is projected to have 82 million people 65+ increasing the demand for senior living communities. These numbers are also expected to put a strain on the health care system with a lack of caretakers and resources to care for this ever-aging population.
To help describe the impact of this age wave of baby boomers (those born from 1946 to 1964), the term silver tsunami was coined as a metaphor for these huge numbers. It was meant to show the profound and disruptive effect they could have in several areas of U.S. society including:
- The health care system
- The housing market
- The workforce
- Senior housing
To protect themselves against the ever increasing cost of housing and health care while ensuring access to higher levels of care, many older adults are starting to consider senior living, specifically Life Plan Communities, because of their active lifestyle and practical plan for the future.
The Silver Tsunami Impacts Everyone Differently
The reality is not all the four areas that were first predicted to be affected have or will impact everyone the same. However, if you’re a baby boomer living off your retirement savings, the demand for, and constantly rising cost of, senior health care could have the biggest impact on your future.
The U.S. Department of Health and Human Services reports that about 70% of seniors 65 and better will need some type of long-term care for an average of three years. According to the 2023 Genworth Cost of Care Survey, assisted living in the Leesburg area has an average monthly cost of $3,823 and a private room in a skilled nursing community averages $10,372/month.
Older people also tend to spend more on prescription drugs and other health care. In fact, a Peterson-KFF analysis of U.S. government data found that in 2019, older adults 65 and over accounted for 35% of health care spending while representing just 17% of the population. With numbers like these, it’s easy to see why the Fidelity Retiree Health Care Cost Estimate predicts a single person aged 65 in 2023 may need approximately $157,500 saved (after tax) to cover their retirement health care expenses and an average retired couple could need approximately $315,000.
Surfing the Wave with Life Care
With so many senior living community options available, which one is right for you? Choosing a Life Plan Community with Life Care – like Galleria Woods – now can help you save big on future health care costs. Plus, we offer an engaging, wellness-focused, maintenance-free lifestyle to ensure you’re able to enjoy life your way and on your terms.
Should the unthinkable happen and you need a higher level of care, as a Life Plan Community, we offer on-site options including assisted living, skilled nursing and rehabilitation. If you choose our Life Care contract option, your monthly fee will remain about the same for any care you need providing increased peace of mind and greater financial security.
There’s Never Been a Better Time to Learn How to Surf
Even if you’re a few years away from moving to a senior living community, now’s a great time to start thinking about it and even considering getting on a waiting list. That way, you’ll have a plan in place for when you are ready. To learn more about our community or our Life Care contract, schedule a visit with us today by using our Community Assistant chat feature or contacting us here.
