The Age Boom is Coming: Implications for Our Aging Society
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Transcript of The Age Boom is Coming: Implications for Our Aging Society
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The Age Boom is Coming: Implications for Our Aging Society
Kate Wilber, PhDDavis School of Gerontology, USC
California Association of Area Agencies Board Meeting and Retreat
September 24, 2008
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Boomer Aging: What is Over the Horizon?
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How will the baby boomers age?
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How will the Baby Boomers Age?
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Topics/Themes
Demographics of an aging society will drive change Longevity Diversity
Characteristics of the Baby BoomersCharacteristics of the Environment 2008+
Health care delivery is costly, ignores chronic care and is a nightmare to navigate
Work, retirement and manpower issues Threats Trends and Innovations
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Pop Quiz
1. In the year 2025—Will the age of the US population be older, younger, or basically the same as Sweden in 2000?
2. What years were the Baby Boomers born?
3. How many baby boomers are there currently living in the US?
4. What is the age at which current workers say they plan to retire?
5. Peter Drucker and David Walker, (Comptroller General of the United States) agree that the most dominant trend we face is?
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Peter Drucker’s Insights on Why Aging Matters (Conference Board Review Nov/Dec 2000)
Single dominant factor for all countries will be population changes.
The biggest and fastest growing population group determines the mindset and the mood.
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Who are the Baby Boomers?
“Generation” born between 1946 and 1964
Currently the oldest are 62; the youngest are 44
About 80 million people
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Who are the Baby Boomers?
Latino10%
A/PI 4%Other 7%
Black 12%
White 67%
White 67%
Black 12%
Latino10%
A/PI 4%
Other 7%
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8372
61
811
18
6 10 12
3 5 8
0%
20%
40%
60%
80%
100%
2000 2030 2050
Asian
African-American
Latino
White
US 65+ Population is Becoming More Culturally Diverse
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Baby Boomer Characteristics:Education
Some College
30%
College Grad17%
Grad Degree10%
< HS15%
HS Grad28%
< HS
HS Grad
Some College
College Grad
Grad Degree
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Are Baby Boomers Better Educated than their parents?
76%85%
19%27%
0%10%20%30%40%50%60%70%80%90%
100%
age 65+ age 44-62
High school grad
College Grad
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Baby Boomer Characteristics Sociodemographic Indicators
Two-thirds are married 18% separated or divorced More likely to be childless (almost 20%) or to have small
families (fertility rate= 1.9) compares to 10%; 3.4 earlier generation)
12% live alone 4% are “linguistically isolated” 75% are employed
Income 8.5% below poverty 21% within 200% of poverty
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Costs: Comparing “early boomers” with current elders 65+Older American 2008: Key Indicators of Well being. Federal Interagency Forum on Aging Related Statistics
12 5
7 13
18 16
32 34
13 13
19 20
0102030405060708090
100
55-64 65+
Other
Food
Housing
transport
Healthcare
Ins/pension
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Baby Boomer Facts From AARP:• Boomers are staying in the workforce longer than the previous
generation—only 11% want to stop working completely• Only 6% plan to down size to smaller homes in the next 5
years• 82% use the internet for email, instant messaging,
downloading music or movies, financial transactions and online gaming
• One-quarter are empty nesters, 37% currently live with children in their home
• 9% are “wealthy” (have income of $150,000/yr).
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Sources of Income: Four Legged Stool
29 28
9012 18
1
15 15
4
3437
1
0%10%20%30%40%50%60%70%80%90%
100%
65+ 1967 65+ 2005 Baby B's2000
Other
Social Security
Assets
pensions
earnings
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20% of Baby Boomers Live with a Disability Sensory
2.5% Physical
7% Mental Health
4% Personal care limitations
2% Mobility limitations
7%
Disability that affects work 13%
More than 1disability 10%
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Disability and Placement are not one way streets: Getting worse/getting better
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Current Housing 78% Home owners
12% own “free and clear”2/3rds live in single family homes (67%)6% live in Mobile homes5% in attached homes
17% Renters 5% live in “group quarters”
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Housing Problems
Without complete plumbing (.61%)
Income kitchen (.5%) No phone (2%) No heating fuel (.7%) No vehicle (6%) Homeless
Up to 30% are 50+
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Who are California's Baby Boomers? (from US Census)
More than 10 million live in CA 51% female 64% married; 14% never married;18%
divorced/separated 12% live alone; half (49%) live with
spouse+others 18% report a disability 7.5% in poverty and 9.5% near poverty (<200%)
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California’s Diversity Current diversity
CA Latinos=30%; US=13% CA Asian-American=12%; US=4% 95% of CA’s 65+ speaks English
Baby-boomers: not the stereotype 40% African American, Latino, or Asian 30% foreign born
Future diversity (2020) Latinos 65+ will increase 3Xs Non-Hispanic Caucasian will increase 50%
Diversity among California Communities
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Demographics of an Aging Society
Population aging is driven by: Reduced Mortality/Increase longevity Decreased fertility
Changing fundamental age distribution in the US
65+ population will double the first 25 years of this century (35 million to 70 million)
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4.07 4.31 4.355.45
6.848.15
9.239.80
11.3012.50 12.79
13.35
16.49
20.00
0
5
10
15
20
25
1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 2030
Trend in % of 65+ Individuals in US from 1900 to 2030
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Population of Sweden 2006
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Men Women
Los Angeles County- 1990 East Los Angeles Beverly Hills
Men Women
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Dependency Ratio
(# people under age 18) + (# people over 65)
# people ages 18-65
Calculates # of people depending on money, goods, & services provided by workforce divided by # of workers
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79.98
73.1871.12
67.76
59.7
64.41
81.6378.71
64.97
61.8163.33
60.91
68.17
78.7479.91
40
50
60
70
80
90
100
1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 2030 2050
Trend in Dependency Ratio in US from 1900 to 2030
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0
10
20
30
40
50
60
70
under 18 40.4 37.9 37.2 34.9 30.6 31.0 35.7 34.2 28.2 25.7 26.0 24.5 24.1 24.1 24.4
18-64 55.6 57.7 58.4 59.6 62.6 60.8 55.1 55.9 60.8 61.8 61.2 62.2 59.5 56.0 55.6
65+ 4.1 4.3 4.4 5.5 6.8 8.2 9.2 9.8 11.3 12.5 12.8 13.4 16.5 20.0 20.0
1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 2030 2050
Trend in % of Distribution for Dependents and Non-Dependents in US from 1900 to 2050
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“Baby Bloomers” now in their prime are:(US Census Bureau News, 3/9/06)
Healthier ~ disability rates declining
Better educated
Higher income
More diverse
Living Longer
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Longevity/Life Expectancy
Competing models2% reduction in mortality/year (Japan)Rates similar to past (.6% annually)
ImplicationsSocial Security Administration projects
someone born in 2030 life expectancy=84Given the 2% assumption life expectancy for
someone born in 2030=104
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Diversity (US Census Projections) http://www.census.gov/Press-Release/www/releases/archives/population/012496.html
2030—All baby boomers will be 65+ 20% of the population will be 65+
2039—The working population will be more than 50% minority
2042—Minorities=The Majority 2050—The 85+ will triple to 19 million 2050—The working population will be more than
30% Latino
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Diversity with the cohorts:What has shaped your life? Identify 2-3 world events that defined your
life? What music do you associate with your
childhood and adolescence? What television shaped you as a child?
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Different Experiences of different Cohorts in the Baby Boom Generation
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Variation Among Boomers
Early Boomers (1948-1955) Civil Rights Vietnam War Assignations (JFK, RFK, MLK)
Late Boomers (1956-1964) Watergate Stagflation
Shared Cold War
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Problems on the Horizon Changing health and wellness
Obesity Toxins Pandemic Dementing Illnesses
Crises in Entitlements Problems that go unaddressed in Medicare and Social
Security Generational Equity Issues
Lack of investment in younger generations that will economically support Baby Boomers
(education, health care, opportunities)
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Obesity
One-third of the US population and one-third of baby boomers
Causes 300,000 deaths annually Rivals cancer and heart disease as leading causes of
death 13.2 million older Americans will have
Alzheimer's disease (AD) by 2050 (Evans 2003, Archives of Neurology)
Currently 4.5 million
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Projected Rates of AD
Year Age 65-74 Age 75-84 Age 85+ Total 2000 0.3 2.3 1.8 4.5 2010 0.3 2.4 2.4 5.1 2020 0.3 2.6 2.8 5.7 2030 0.5 3.8 3.5 7.7 2040 0.4 5.0 5.6 11.0 2050 0.4 4.8 8.0 13.2
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Impact of Changing Demographics
Those at Highest Risk (Low income/Less education): More chronic care services
Increases in LTC need based on age-related chronic illness & disability
High health care inflation
Need for more manpower resources: Families and informal caregivers provide most of the care ~ over $250 billion in 2000
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The Retirement Landscape2007 Federal Budget (Concord Coalition)
20.5
13.4
9.63.3
23
21.5
Defense
Soc Sec
Health
IncomeSecOther
Education
Entitlements (Social Security, Medicare, Medicaid) comprise 42% of the Fed Budget
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Addressing Ageism and Age Anxiety Young @ Heart Less anxiety
Older age Good health Not poor Knowledge about
aging Regular (at least
weekly) contact with older people
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Change Our Thinking: Bill Thomas
“By lionizing youth and using the benchmarks of a healthy adulthood as the gold standard of well-being, contemporary society has created a simple but radical reinterpretation of age and aging.
Old age has been recast as a merciless descent from the apex of youth — a hurling fall and a peculiar form of brokenness that must be resisted with every available means”
(What are old people for?
VanderWick & Burnham, 2004; p. 84)
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The Current Context: Threats and Our Aging Society Debt & Deficit (more in a minute)
Money spent servicing debt Current Bailouts: $ Financial crisis Mortgage crisis Globalization
Loss of manufacturing jobs (US produces half of what we consume)
Foreign creditors Commodity inflation
Energy/oil shortage Climate change
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The Current Context for Elders
Reduced pensions More defined contributions/fewer defined benefits
Health care costs/inefficiencies/poor outcomes Increasing personal dept
Largest increase in bankruptcy aged 55+ 1/4 of Boomers have no savings or investments
Low level of savings Increasing unemployment Increasing health and wealth disparities
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Debt http://www.concordcoalition.org/learn/debt/national-debt
Current Federal Debt is over $9.5 trillion $9,652,942,800,000 (9-20-08) http://www.concordcoalition.org/learn/debt/national-
debt $31,000/person in US
Consumer dept (excluding mortgages) $ 2.5 Trillion ($8,333/person and $18,600/taxpayer)
Bailouts for the financial and mortgage crises—$1 trillion+ secured by assets
Lack of savings, earning options, and safety net to fall back on
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Income: Social Security
Replaces about 42% of the final wage earned for a “typical” worker” (full career, average wage)
Social Security provides 3/4ths of income for the bottom 60% of earners at retirement
The US has one of the highest average retirement ages (63) among developed countries College educated remain in the labor force longer We can expect to see Baby Boomers stay in the
workforce longer
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Chronic Care Consumers
In 2001, 12 million people in the U.S. used long-term care
• 57% were 65+
• 40% were adults under the age of 65
• 3% were children
18 to 64
40%
< 183%
65+57%
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Health Care Costs
$1.9 trillion+ in 2004 (16% of GDP) $6,423 per person
More than 2.5 times the $717 billion in 1990 (13% of GDP)
More than 7 times the $255 billion in 1980 (9.1% of GDP).
Estimated $3.6 trillion by 2014 – 19% of GDP or about $11,045 per person
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Problems with Health Care
Outdated acute care delivery system
Medical/social services are fragmented, disjointed, duplicative, & inefficient
Multiple/mutually exclusive funding streams
Incompatible regulatory requirements
Disconnected bureaucratic authority
Lack of integrated information systems
Chronic conditions impair functioning affecting quality of life & create dependencies
LTC is ignored
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Health Care Score Card (Commonwealth Fund) 2007, more than 75 million adults—42 percent of
all adults ages 19 to 64—were either uninsured or underinsured, up from 35 percent in 2003.
U.S. now ranks last (19th) on mortality amenable to medical care, 101,000 fewer people would die prematurely if the
U.S. could achieve leading, benchmark country rates. Rates of control of diabetes and high blood
pressure, have improved significantly.
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Left Out of Health Care Expenditures
Long-Term Care ServicesCustodial care in nursing facilities
Assisted living
ADHC
Personal care
Senior centers
Nutrition centers
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Yip, Myrtle, Wilber, & Grazman (1999)
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Current Approach to Long-Term Careis Not Working…
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Workforce Issues for California: Shortage of caregivers, providers, and professional workers
American medical system is woefully unprepared for the flood of aging baby boomers (IoM, 2008)
In California only one geriatrician for every 4,000 Californians age 65 and older
California faces a shortfall of 30,000 certified nursing assistants to care for the frail elderly
Currently 80% of care is provided informally by friends and family members
Baby boomer brain drain in State including state service
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Manageable Models ADPC/One Stops
Accessible and integrated services Uniform assessment core & appropriate information
sharing across silos Integrated information systems Telephone monitoring (peers/buddies)
Consumer direction, Preferences/Aging in choice Aging in community Support Families Culturally Competent
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Changing Housing needs
Will we need the current supply of single family homes? Birth dearth ¼ of Baby Boomers want to live in retirement housing Working with developers Visitability and universal design
Role of Co-housing Transportation Integrated Services
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Photo by Genaro Molina, 1993
Next Steps
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Last Thoughts: Ideas
Diversity Implications Stay close to your participants and non-participants Use focus groups, listening sessions, ways to
introduce innovations What is working? What do they need/want? What would bring people in? Seniors Count (LA): Dental Services, Wellness, exercise
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Normalize Services Café Models rather
than senior centers Promote opportunity
Life long learning Encore careers Intergenerational
Work in Schools (Sheri Lansing)
Book clubs, art, culture
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Innovations
Fitness and wellness
Intergenerational Programs
Giving back Empowerment Reciprocity
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Build on Experience
Caregiver support PTA model Getting involved with leadership
Service banking Build Community Repertoire of Services/Choice Help with Transitions (Hospital, SNF, accessing
services) Marin Model—Project Independence
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Building Capacity of Aging Network Services Prevention using EBP
Fall prevention Medication Management Exercise/wellness Disease management/Disease self-management
Rebalancing/Olmstead Expand HCBS Links to housing and transportation MFP IFP (IIS: service tracking, costs and planning)
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Change Language/Change Paradigm Problems
“Senior” “Services” “Volunteer” “case management” “nutrition programs”
Independent Living Resource coordinator Service Navigator Peer Counseling; Peer-
to-peer programs Wellness Disease self
management
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Normalizing Facility Care: Eden Alternative Model …dedicated to helping others create enlivening
environments and the elimination of the plagues of Loneliness, Helplessness, and Boredom. We are dedicated to helping people grow.
We must teach ourselves to see the environments as habitats for human beings rather than facilities for the frail and elderly
Spontaneity and variety are valued
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Eden Values
Loving companionship is the antidote to loneliness. Elders deserve easy access to human and animal companionship.
The antidote to helplessness—An Elder-centered community creates opportunity to give as well as receive care.
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Normalize Services: Greenhouses (from websitehttp://www.ncbcapitalimpact.org/default.aspx?id=148) De-institutionalizes long-term care by eliminating
large nursing facilities and creating habilitative, social settings. Small intentional community for a group of elders and
staff. Alters facility size, interior design, staffing patterns, and
methods of delivering skilled professional services. Elders can receive assistance and support
without the assistance and care becoming the focus of their existence.
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The Last Word: Drucker on Change…
Change needs to be build on strategic realities
Instill value, create culture of change as opportunity
Can’t manage change; stay ahead of it
Change strategies: Organized abandonment of yesterday
What contributes/what doesn’t? Maintaining yesterday’s baggage is costly Key questions:
“If we didn’t already do this, would we?” “If we would do this, are we doing it the best way?”
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Drucker’s Change Strategies
Organized continuous quality improvement
Exploit success/feed opportunities Novelty is not innovation Motion is not action
Create change through systematic innovation
Test innovative ideas through piloting
Balance change and continuity
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More Drucker on Change…
“To try to make the future is highly risky.
It is less risky, however, than not to try to make it.
A goodly proportion of those attempting to
implement change will surely not succeed.
But, predictably no one else will” (page 93).
Drucker (1999). Management Challenges for the 21st Century. New York: Harper Collins Publisher.
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We are stardustWe are goldenAnd we've got to get ourselvesBack to the garden
from Woodstock
by Joni Mitchell
We are stardustWe are goldenAnd we've got to get ourselvesBack to the garden
from Woodstock by Joni Mitchell