StephenWinbaum
Communications Coordinator
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Sep 23, 2005, 1:39 PM
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The retirement industry is win win. Financial analysts at banks have studied the baby boomer demographic and have determined that retirement home facilities are an excellent long-term investment.
The baby boom generation covers an age group born from 1946 to 1964, meaning the first baby boomers will reach retirement in 2011; the final cohort will turn 65 in 2029. During that era 83-million baby boomers will pass into retirement age.
These numbers will guarantee a massive expansion of facilities by retirement companies and by all levels of governments. Also, this rapid growth will reinforce high occupancy rates.
Diversity among the legions of baby boomers progressing to retirement means a healthy prospect for retirement corporations, and an assurance of loans from investment companies.
A large number of baby boomers have acquired financial success and can afford to build their own homes. But many will opt for the category ‘active lifestyle’ where they can live with other seniors in the same age and financial bracket.
Most marketing campaigns are designed to target a specific audience — “Today’s seniors have active lifestyles, feel healthy both mentally and physically, and remain in touch with their world. They do not identify themselves with or respond to traditional stock photos of elderly individuals engaged in stereotypical ‘senior’ activities.” (Dave Martino, A Mature Market)
Active lifestyle can require the construction and maintenance of individual homes or condos, golf courses, tennis courts, swimming pools, and club houses, with 24-hour gated-community security. Residents pay a monthly home owners fee which covers property maintenance and access to facilities inside the community. The wealthy baby boom generation will assure high occupancies and motivate bank analysts to approve loans for the development of these communities.
Types of care will change as baby boomers age from active lifestyle: - Assisted Living for residents who require minimal daily assistance in eating, bathing, and dressing
- Nursing Care for seniors who need supervision and assistance in all tasks that they perform
- Continuing Care for retirees whose health may decline over a period of years. Also known as a Continuum of Care, this retirement service progresses with individuals through a range that begins with active lifestyle, to assisted living, and concludes in nursing care. The needs of the individual are gradually provided for in one facility, leading to a sense of greater stability. As people live longer, Continuing Care is becoming more important in the retirement industry. Occupancy rates remain high while the new baby boom generation looks for retirement homes. New facilities will be needed to decrease the overcrowding, and now is the time to build new homes. The retirement marketplace is expanding; banking analysts are prepared to loan money to members of the retirement industry who can make a good proposal
- Alzheimer’s Facilities for seniors with retirement loss and dementia. Early onset of Alzheimer’s will create an increase of baby boomers in these facilities. Retirement industry experts warn of a significant increase of the illness as baby boomers enter retirement
- Home Care for individuals who want to stay at home and receive daily visits from a doctor or nurse
- Hospices for those in palliative care or close to death
Retirement companies and government-financed complexes will be required to meet these challenges as baby boomers’ health decline. Specialized facilities will need to be built and renovated, staff will be hired and trained, and medical equipment will be purchased. All these activities will involve financing through long-term loans, amortized, and paid off as baby boomer occupants arrive.
Long-term loans are far-sighted for both banks, and other financial institutions, and retirement residences who wish to expand while maintaining a high occupancy rate.
The climate for industry expansion is promising; a bank loan is a good bet.
Stephen Winbaum is the Communications Coordinator for RetirementHomes.com
(This post was edited by StephenWinbaum on Oct 14, 2005, 10:10 AM)
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