As the aging population grows and shifts the demographic pyramid, the need for quality specialized care for seniors will rise. Ease and comfort for the eldest citizens of society should be readily accessible and available. The statistics paint an accurate picture of the growing importance of eldercare.
Aging society and demand for senior care
- 16% of the population in the United States is 65 years and older (EPTA, 2019)
- The home care market is expected to grow to $225 billion by 2024 (Businessinsider, 2019)
- 7% of adults aged 65 and over needed help with personal care from other people (Tableau, 2019)
- Women were more likely to need help with personal care than men (Tableau, 2019)
- 7 out of 10 people over the age of 65 will require long term care (Longtermcare, 2017)
In-home care
- Around 12 million people in the U.S. receive home care and have diverse long-term care costs in different states (1800homecare, 2017)
- 44% of home care recipients needed help and assistance with at least one daily activity, 83% need help with bathing and showering (CDC, 2004)
- Most patients received medical/skilled nursing services (75%), personal care (44%) and therapeutic services (37%) (CDC, 2004)
- 70% of home care patients are aged 65 and older (CDC, 2004)
Digital technology assistance
- The U.S. has invested in over $35 billion to accelerate the development of health information technology (EPTA, 2019)
- 45% of senior adults were using broadband services; if that number improves, it could allow more extensive access to telemedicine to many elderly patients (EPTA, 2019)
- Only 6% of adults over 50 use transportation apps such as Uber and Lyft (EPTA, 2019)
- GPS services can help locate a senior who may become lost, considering 60% of those with Alzheimer’s or dementia may wander (Aging)
- Seniors taking five or more prescription drugs can benefit from technological advancements (Aging)
Positive improvements
- In 1965 only 5% of Americans ages 65 and older had gained a bachelor’s degree, but by 2014, the number rose to 25%. (PRB, 2019)
- The share of 30% of poor elder Americans in 1966 dropped to 10% in 2016. (PRB, 2019)
- In 1950 the average life expectancy for Americans was 68 years. By 2013 it had increased to 79 years. (PRB, 2019)
- The gap between the life expectancies for men and women was seven years in 1990. This gap narrowed to less than five years by 2013. The average life expectancy for women was 76.4 years and 81.2 years for men. (PRB, 2019)
Demographic Changes
- It is projected that by 2060 the number of Americans aged 65 and older will double from 46 million to 98 million. The share of people older than 65 in the total population will rise from 15% to 24%. (PRB, 2019)
- By 2014, 23% of men and 15% of women ages 65+ were still working. Estimates show that this number will rise to 27% of men and 20% of women by 2022. (PRB, 2019)
- Racial and ethnic diversity increases among elders. Between 2014 and 2060, the share of non-Hispanic white older adults is expected to fall from 78.3% to 54.6%. (PRB, 2019)
Challenges
- 40% of Americans between the ages of 65 and 74 were dealing with obesity between 2009 and 2012. (PRB, 2019)
- From 1980 to 2015, the share of divorced elders increased. The percentage of divorced women rose from 3% to 13%, whereas for men from 4% to 11%. (PRB, 2019)
- In 2014, 27% or more than one-fourth of women older than 65 lived alone. By 2016 the share increased to 42% of women between 74 to 84, and 56% of women aged 85 and older. (PRB, 2019)
- Among older Americans, 18% of Latinos and 19% of African Americans lived in poverty in 2014. These rates were almost twice as high compared to the 8% of non-Hispanic whites. (PRB, 2019)
- Since the number of elders constantly increases, it is expected that the expenditures for Social Security and Medicare will rise from a combined 8% of GDP in 2016 to 12% by 2050. (PRB, 2019)
- Once the baby boom generation gets older, projections are they will fortify a 75% growth in the share of American elders in need of nursing home care. Thus, the number is expected to rise from 1.3 million in 2010 to around 2.3 million in 2030. (PRB, 2019)
- Estimates show that the number of people with Alzheimer’s could triple from 5 million in 2013 to 14 million by 2050. (PRB, 2019)
Assisted living facilities
- It costs an average of $48,612 to live in an assisted living facility for a year (Genworth, 2019)
- There are an estimated 811,500 residents nationwide residing in assisted living facilities (Ahcancal, 2019)
- 13% of older adults use assisted living, and they typically use this type of care for less than a year (Longtermcare, 2017)
- There are over 30,000 assisted living homes in the United States (Aging)
- More than half (52%) of the residents in assisted living facilities are more than 85 years (Ahcancal, 2019)
- There are significantly more women (71%) than men (29%) living in these homes (Ahcancal, 2019)
The national average costs for long-term care in the U.S. are:
- $225 a day or $6,844 per month for a semi-private room in a nursing home.
- $253 a day or $7,698 per month for a private room in a nursing home.
- $119 a day or $3,628 per month for care in an assisted living facility (for a one-bedroom unit.)
- $20.50 an hour for a health aide.
- $20 an hour for homemaker services.
- $68 per day for services in an adult day health care center.
(LongTermCare.gov, 2016)
- 77 million Baby Boomers are considering retirement in the next 20 years. (SBDCNet*)
- However, 25% of people in this generation contemplate postponing their retirement because of the struggling economy. (Money, 2020)
- About one million elder Americans live in senior care facilities. By 2030 this number is expected to double. (SBDCNet*)
- The average cost of living in an assisted living facility ranges between $3,000 and $4,500. (Senior Housing News, 2009)
- In 2009 the four biggest assisted living facility providers in the USA made up 13% of the market share. (SBDCNet*)
Family caregiving
- The value of family caregiving that is usually provided for free is estimated to be $375 billion a year (Caregiveraction)
- 16.8% of the U.S. population (51.8 million) provide care for a senior family member during any given year (Caregiving, 2020)
- 52% of caregivers did not feel qualifies to provide physical care (Genworth, 2018)
- 23% of Americans say that caregiving has made their health worse, 45% reported some financial impact, and 61% reported that it had impacted their work (Caregiving, 2020)
- On average, caregivers are women (61%), mostly older, with an average age of 49.5 years (Caregiving, 2020)
- There is an increasing number of Americans caring for someone with Alzheimer’s or dementia (26%) (Caregiving, 2020)
ALF Revenue
- Most of the revenue for ALFs, i.e., 65%, comes from payments from patients and their families. (SBDCNet*)
- 10.5% of the revenue comes from Medicaid, with 115,000 elders living in ALFs receiving payments from this program. Medicare provides 6.2% of revenue for this industry. (SBDCNet*)
- Medicaid spends 73% of the budget on the long-term care industry for people living in nursing homes. (SBDCNet*)
- The amount Medicaid spends on one person in a nursing home equals the amount needed for almost three people in a retirement community. (SBDCNet*)
Market Demographics
- Between 2010 and 2020, the number of American adults between 65 and 84 will grow by 38.8%. The share of people older than 85 will increase by 18.7%. (SBDCNet*)
- In 2006, 69% of women and 31% of men lived in a retirement community. (SBDCNet*)
- The typical resident of an assisted living facility is an 85-year-old woman. (SBDCNet*) Adults older than 85 are the most prominent among residents in AFLs. (SBDCNet*)
Senior Living Market
- In 2006, there were about 30,000 assisted living facilities in the U.S. The industry’s revenue was estimated to grow to $36.8 billion in 2009. (SBDCNet*)
- Most AFLs, or 23%, are situated in the Southeast of the U.S. (SBDCNet*)
- In 2007, the retirement communities brought in 58% of the industry’s revenue, whereas homes for the elderly brought in 42%. (SBDCNet*)
- In 2008, the occupancy rates for AFLs lowered by 2% because adults postponed moving into retirement communities. (SBDCNet*)
- Between 2008 and 2009, the industry grew by only 1%. However, it was expected that by 2014 it would grow by 4.2% each year. (SBDCNet*)
Whether institutional or in-home care, it is vital that the people who built today’s society are well taken care of in their later years.
*We’re using an archived version of the page as the source.
