Health Affairs Study: More Than Half of Middle-Income Seniors Will Lack Financial Resources for Housing & Care by 2029

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Demographic shifts in the U.S over the next decade will nearly double the number of middle-income older adults ages 75 and over—more than 14 million people—with the majority lacking the financial resources to afford seniors housing with supportive personal care services, a new study shows.

This NIC-funded study, conducted by NORC at the University of Chicago, was published in Health Affairs and identifies a vast underserved ‘middle market’ for the seniors housing and care industry and underscores the need for government and private sector actions to ensure middle-income older adults can afford the housing and care they will need.

KEY FINDINGS

  • The number of middle-income older adults will nearly double by 2029 (from 7.94 million to 14.35 million).
  • 54% of middle-income older adults will not be able to afford their housing and care needs by 2029, even if they dedicated all of their financial resources (including the assets they built up in their home).
  • More than 80% of middle-income older adults will not be able to afford their housing and care needs even if they dedicated all of their income and savings, but not their home equity.
  • Most middle-income older adults will have health needs that present challenges to living at home:
    • 60% will have mobility limitations
    • 20% will have “high needs”
    • 8% will have cognitive impairment

The John A. Hartford Foundation, along with The SCAN Foundation and AARP Foundation, provided additional support for publication of the research and a Health Affairs briefing.

For an overview and related information about the study, click here.
To read the Health Affairs abstract, click here.