Senior Living

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Senior Living

Income

  • According to the Census Bureau's 2018 report, the average household income for Americans aged 50 to 64 is $103,653.
  • From the same report, the average household income for Americans aged over 65 is $67,238. This drop in income makes sense as older baby boomers retire around age 65 to 70.
  • Overall, the average income for baby boomers (aged 50+) is $86,344.
  • According to Nielsen, Baby Boomers control 70% of the country's disposable income.

Nontraditional Senior Living Trends

  • One trend in nontraditional senior living is communities based on lifestyle rather than on aging. Younger baby boomers want to live in communities of like-minded individuals with shared traits and interests beyond just their age. "Look for affinity branding, whether based on religion, sexual orientation, ethnicity or simply interest, to rise, while age-centric identification falls in its wake." One example of this trend is Latitude Margaritaville, a development project of senior living communities with the theme of Jimmy Buffet's Margaritaville. The vision of the project had four pillars: "fun, food, music, and escapism."
  • Another trend among young baby boomers is the desire to downsize to a simple, urban lifestyle, rather than a traditional retirement community. One startup taking advantage of this trend is Ollie, based in New York City. The company provides all-inclusive micro-apartments based on the idea of co-living. "Many U.S. baby boomers are choosing to sell their longtime suburban homes in favor of renting smaller, more urban apartments," which is what Ollie is capitalizing on. The apartments include everything from WiFi to housekeeping services, and they're in communities with organized events and activities, similar to traditional retirement communities. However, these facilities don't offer health care services, dining, and other common senior living amenities.
  • Another trend is alternative living arrangements. One need among retirees and seniors is affordability, as many are living on a fixed income and/or a limited budget. Another need is for companionship, ranging from friendship to living assistance. One alternative arrangement addressing both of these needs is aging in place with a roommate. Silvernest is one startup addressing this need. It's a platform for seniors to find roommates to live with them in their homes. This allows the seniors to continue living in their home while making it more affordable (since the roommate pays rent) and providing them with some companionship and possible living assistance, depending on the arrangement.

Travel

  • Boomers account for at least 80% of spending in the premium travel market, according to Nielsen. They typically plan to take 4-5 trips per year, and about half of boomers want to travel both domestically and internationally, according to AARP.
  • One travel trend among Baby Boomers is that they're motivated to take family vacations, treating their entire family to a trip. They value creating memories and togetherness and see this as a worthwhile way to spend their money. Baby Boomers surveyed by AARP reported that spending time with family and friends was their top motivation to travel.
  • Overall, Baby Boomers are most interested in experiential, luxury travel. When traveling, they desire unique and authentic local experiences and cultural immersion, and they're also generally interested in active travel, especially soft adventure travel. In addition, boomers are more likely to book luxury travel as well as add-ons like upgraded packages, and only 57% of boomers report that budget is a concern when booking travel.
  • While we did find many case studies or articles on retirees traveling extensively, for months at a time, including on cruise ships, we couldn't find any data or statistics on the popularity of this choice. A recent article from the Washington Post on the topic reports, "There are no statistics from the industry trade group about people who live full-time on cruise ships; the figure appears to be the smallest fraction of the cruising public." Reportedly, many cruise lines do offer extra-long cruises designed to target those with plenty of time and money, and with a taste for experiential luxury - exactly the baby boomer demographic. One example of cruise ship retirement is The World - Residences at Sea, the world's largest residential yacht that is currently occupied by 142 families with an average age of 66.
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Sources