Senior living communities could see a reduction in move-ins in coming years as people retire early but with inadequate savings to cover their later-in-life needs, according to a Bloomberg opinion piece.
After the trials and tribulations of the pandemic year, many younger baby boomers are leaning toward getting out of the workforce earlier than anticipated, Allison Schrager said.
It is estimated that a couple will need to have more than $300,000 in liquid assets if they want to ensure they can pay for all of their health expenses. Research, however, shows that most have just $250,000 in total financial assets.
According to a recent survey, the average expected likelihood of working beyond age 67 declined to 32.9% in March, down from 34.9% in November 2020. The change is most pronounced among women.
This could have a profound effect on senior living and care facilities in the long run. Women have a longer life expectancy than men, outliving their male counterparts by about five years, on average. Women who reach age 65 can expect to live an average of almost 20 more years.
