In the olden days’ olden days, elders moved in with the kids and that was that. Later, transient lifestyles and work-styles heralded the era of the “old folks’ home.” Group-living complexes may have been a necessary transitional phase to the choices facing baby boomers in the next few decades. What do boomers want in senior housing, and will we get it?
Many boomers will spend decades in retirement given lengthening life spans. But what is retirement for us? Upcoming retirees perceive this stage very differently than did the previous generation. An Associated Press 2005 analysis found that most boomers plan to retire around age 63, but two-thirds expect to keep working at least part-time after formally retiring. Some will work to make ends meet, while others will work “to stay busy.” Even if they don’t “need” the money, some of them will work to supplement their income to pay for luxuries. Will they be living at home?
In an AARP member poll in 2004, over one-third of respondents were curious about what are now dubbed CCRC’s (Continuing Care Retirement Communities). But what they want is different than what their parents wanted. A survey by Concierge Care Advisors in 2010 found that the most important factors were proximity to current residence, meal choices, and available transportation.
Most express interest in some type of wellness or exercise program. We want continuing access to the larger community: today’s seniors don’t want to leave their former lives behind. We want to remain socially and physically active, but our interests extend beyond “typical” offerings like themed events, and arts and crafts.
Fortunately, the marketplace seems to be listening. Many CCRCs today operate similarly to college campuses. Moreover, alternatives to senior communities – hybrids between senior communities and living with the kids – are expanding.
According to AARP, the appeal of a CCRC is that entering one is a once-in-a-lifetime choice. The same campus features independent housing as well as assisted living and nursing care, so we can “age in place” without continuing to move to a different facility. Some feature a rich diversity of classes, activities, meal and health care options. CCRCs’ appeal is the carefree lifestyle and freedom from responsibility.
Another up-and-coming option is a “back to the future” idea called ECHO: elder cottage housing opportunity. ECHOs are small, temporary houses installed in a backyard. They are self-contained prefab units of typically 400 to 800 square feet that allow a senior to remain largely independent while still living within earshot of their family. Amazing for their size, ECHO housing usually includes slimmed-down but complete versions of all the home amenities -- a kitchen, a bedroom, a bathroom, and a living room. The idea first gained popularity in the 1970s as granny flats in Australia. ECHO housing caught on in the United States in the late 1980s and has since been promoted by AARP as an inexpensive housing solution for older adults.
Another concept is the community village being developed in progressive cities around the country. These are not homes at all but community-based membership organizations focused on empowering older adults to live happily, healthfully, and successfully in their own homes as they age. They provide a network of resources that addresses members’ living needs and their social, cultural, and educational interests. Village communities are for seniors who wish to remain independent and at home as long as possible.
One such experiment is Santa Barbara Village, which they dub a "virtual senior living community." Area residents become a community by joining the village for shared access to resources, while volunteering for one another.
The bottom line is that, just as in the rest of our adult lives, different housing alternatives will appeal to different seniors. The idea of staying put has a strong appeal; the village concept helps make that a viable alternative. It is also bound to be the least expensive option.
ECHOs benefit greatly from the allure of being close to loved ones without being “in their faces.” The small size of the units makes them viable in many backyards, and city zoning officials are warming up to this type of housing because it can add stability to the neighborhood.
CCRCs have a wide price spectrum depending on the area of the country and how close it comes to achieving the college campus ideal. Long-term care insurance may help when seniors graduate to the more care-intensive facilities.
Other alternatives are being developed daily. It may become as confusing as Medicare options, but overall it’s a welcome development. As Concierge Care Advisors discovered in their survey, “today's consumers are most interested in choices,” and that’s what we’re getting.
Karen Telleen-Lawton, CFP®, is the principal of Decisive Path Fee-Only Financial Advisory
(www.DecisivePath.com) as well as an environmental and economics author and writer (www.CanyonVoices.com). She can be reached at:
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