As the number of aging baby boomers increases drastically in the coming years, where these older adults choose to live will no doubt impact the senior living industry.
The population 65 and over increased from 36.6 million in 2005 to 47.8 million in 2015 and is projected to more than double to 98 million in 2060, according to a recent report from the Administration for Community Living.
States that saw the largest increase in adults 65 and older from 2005 to 2015 include Arizona with a 48% increase, Colorado with a 53.8% hike, Georgia with 50.2%, South Carolina with 48.9% and Nevada with 55.3%, according to the report.
The two states that had the most residents 65 and older in 2015 were California and Florida with 5,188,754 and 3,942,468 respectively.
Following California and Florida were New York, Illinois, Ohio and Michigan.
Even though California and Florida have massive numbers of older residents, the percentage of those residents below the poverty level are on the higher side with 9.9% and 10.3% respectively.
The major sources of income for older people in 2014 were reported to be Social Security (84%), income from assets (62%), private pensions (37%), earnings (29%) and government employee pensions (16%).
The average Social Security monthly benefit in 2016 was $1,341 for all retired workers.
The financial struggles among older adults could signal the need for more affordable housing in the states with a higher percentage of older adults below the poverty line.
On the flip side, providers that are looking to develop luxury communities could have better luck in states with the lowest percentage of older adults below the poverty level. Those states include Alaska with 4.5%, New Hampshire with 6.1% and Delaware with 6.2%.
In addition to the potential for financial issues to increase as people age, caregiving needs also skyrocket, the report found.
In January 2016 to June 2016, older adults 85 and older were more than twice as likely as adults 75-84 to need help with personal care from someone, and adults 85 and older were six times as likely as adults aged 65-74 to need personal care help.
Written by Alana Stramowski
Latest Senior Housing News Research