The Rise of Seniors in America

10,000 people in the United States turn 62 every day.  That means the entire Baby Boomer generation–71.6 million people–will be eligible for a reverse mortgage by 2028.  Let’s get to know them.

All statistics are pulled from The Administration for Community Living’s “2021 Profile of Older Americans” which defines the older generation as anyone aged 65 years+.

Population

In 2020, 17% of the US population was aged 65 or older (55.7 million).  That’s more than 1 in 6 Americans.  That number is expected to increase to 22% by 2040.

The proportional difference of older Americans to younger (under 65) has increased substantially over the next decade and will continue to do so.  Since 2010, the number of 65+ Americans has increased from 40.5 million in 2010 to 55.7 million in 2020 (38% increase), whereas the rest of the population only increased by 2% over the same decade.  Because fewer babies were born during the Great Depression, growth of the 65+ generation was slower during the 1990s and early 2000s.  Now, however, half of the Baby Boomer generation is 65+ with the other half coming in the next five years and further than that, should reach 94.7 million by 2060.

The top two states with the highest percentage of older population were Maine at 22% of its population and Florida at 21%.

Here is a breakdown for Minnesota, Wisconsin, and Florida specifically–the three states Jay Dacey Mortgage Team is licensed in!

State	% of Population aged 65+ in 2020	Increase from 2010 - 2020
Florida	21.3%	41.5%
Minnesota	16.8%	38.2%
Wisconsin	18%	34.3%

Health

The average out-of-pocket health care expense for older Americans in 2020 was $6,668–an increase of 38% since 2010.  Almost all individuals (94%) were covered by Medicare.  2% of people in 2020 self-reported that they had not obtained medical care during the previous 12 months specifically due to cost.

Only 1.2 million people lived in nursing homes in 2019–a surprisingly small percentage of the older population (2.15%).  That number is heavily age-striated, with only 1% of individuals between 65 and 74 but increasing to 8% for individuals over age 85.

The most common chronic conditions include:

■ Arthritis (47%)

■ Coronary heart disease (14%)

■ Myocardial infarction (9%)

■ Angina (4%)

■ Any cancer (26%)

■ COPD, emphysema, or chronic bronchitis (11%)

■ Diagnosed diabetes (21%)

Of day-to-day activities, 21% reported trouble seeing even with glasses, 29% reported difficulty hearing even with hearing aids, 39% reported trouble with walking or climbing stairs, and 28% had trouble with remembering or concentrating.  Less common were communication difficulties (8%) and self-care (8%).

Income

The median income of older Americans was $26,668 annually.  Men generally had higher income at $35,808 compared to women at $21,245.  10.6 million older Americans (nearly 20%) were still working or actively looking for work.

Homeownership

Older persons tend to move less frequently and shorter distances than younger generations.  In 2020, 3% of 65+ moved compared to 10% of under-65s.  Over half of the older movers stayed in the same county as their previous home.

Older homeowners are more likely to be sitting on a lot of home equity in their current home.  The median value of homes owned by older Americans was $200,000, and those homes were originally purchased at an average of $75,000.  This means the average senior has $125K in home equity, just from the appreciation since their original purchase!