Tatiana Bailey: The benefits of aging in place
Data-Driven Economic Strategies recently completed a study examining aging in the United States and Colorado Springs that highlights the cost-effectiveness of seniors aging in place. The study was funded by the Ann Arbor, Mich.-based RNR Family Foundation and our local Pikes Peak Housing Network.
The aging of the U.S. population is front and center in our lives whether we are caregivers, employers losing knowledgeable and valuable retiring workers, or seniors adjusting for significantly higher life expectancy with its associated costs. It’s a pervasive issue because of the scale of the demographic shift. The senior population in the U.S. has surged from 12 million in 1950 to 58 million in 2022, with projections reaching 82 million by 2050.
Colorado Springs mirrors this trend, with seniors expected to grow from 32,000 in 1990 to 167,000 by 2050. Remarkable improvements in life expectancy have driven this seismic shift, increasing from 47 years of age in 1900 to 77 years by 1990.
Often, we think about baby boomers and how they are well-off owning homes from which they won’t move. But only about 7% of senior heads of households have annual incomes above $200,000, which includes retirement income; 18% have between $100,000 and $199,000 per year, almost 30% have between $50,000 and $99,999 in annual income, and almost half seemingly live on Social Security with $0 to $49,000 in annual income. The overall U.S. median income was almost $54,000 in 2022, which is difficult to live on these days. The financial picture is similar in El Paso County.
How to survive on fixed incomes is the challenge. In Colorado Springs, care in a nursing home costs about $93,000 a year, and in an assisted living facility almost $59,000. Even if a senior sells their home, they will quickly exhaust the proceeds living in one of these facilities. But for a senior couple with a typical mortgage, the cost comes down to about $48,000 a year, and for homeowners without a mortgage, the cost is about $34,000 a year. Both of those aging-in-place options are under the median senior income.
Most seniors prefer to stay in their homes, with 88% of U.S. adults ages 50-80 valuing this option. And the good news is that many seniors do own their homes and have this option when homes are modified for safety and accessibility. Nationwide, 77% of households headed by seniors own their homes and locally it’s even better at an 82% homeownership rate.
Unfortunately, senior renters are another story, and you can read more details about this alongside recommendations in the full study available on the DDES website, ddestrategies.org.
On a personal note, my 82-year-old dad has been living with my family since 2018. Every day and often in the middle of the night I ruminate on whether I’ve taken care of all of his needs, on whether I’ve shown him enough love that (busy) day, and on how to make his last years the best they can be. He is not a self-sufficient 82-year-old and I often think about how different his life would be if he weren’t with us. It is incredibly hard to watch a parent deteriorate, but also incredibly beautiful to know we are doing the best we can. At least once a week, my solace comes from talks he and I have about the wondrous blessing it is for us to be together during his last chapter.
The privilege of doing this study solidified for me that there is an affordable and high quality of life solution if we can channel resources and raise awareness on how to optimally age in place. By supporting aging in place, we not only do the right thing, we also enhance the well-being of our seniors while strengthening the social fabric of our community.
Tatiana Bailey is executive director of the nonprofit Data-Driven Economic Strategies.
Tatiana Bailey is executive director of the nonprofit Data-Driven Economic Strategies.