The tech-savvy and independent boomer generation is reaching retirement age, yet boomers are significantly unprepared for aging at home. Boomers need to prepare their home for aging, plan-out their finances, and decide their caregiving preferences. Entrepreneurs have a large opportunity to build new solutions for this demographic. This presentation outlines the relevant demographic changes occurring and key opportunity areas for entrepreneurs building for seniors.
2. The baby boomer generation is reaching retirement age;
boomers are tech-savvy and independent - plan to age at home
Boomers hit retirement age
Source: US Census Data, AARP, LongTermCare.gov, APlaceForMom.com
Boomers are reaching retirement Boomers more likely to age at home
Boomers
want to stay
at home
CMS is
supporting
aging at
home
Adjacent
technologies
enable aging
at-home
● Baby Boomers (b. 1946-1964) are reaching
retirement age (65+)
○ 75M people; 70% will need care
○ 80% own home (largest asset)
● Tech-savvy and independent population;
90% prefer to stay in current home
● Changes to medicare and medicaid mean
more seniors will age-at-home
○ Medicare and Medicaid are expanding
home-based care benefits
○ Several states are increasing the
number of residents in managed care
● Nest cameras, smart locks, and baby monitors
are already being used to monitor seniors
● Seniors in certain geographies can request a
Lyft through Jitterbug smart phone
(smartphone built for seniors)
3. Boomers are significantly underprepared for aging at home;
need to plan finances and prep home to age comfortably
● Wealth tied-up in large assets
● Limited ability to forecast expenses
● Exposure to scams and identity theft
● Confusion with financial products
● High expense of at-home care
● Difficulty finding and retaining care
● Difficulty ensuring trustworthy care
● High administrative burden
● Reverse mortgage and home equity
solutions
● Financial products with real-time
alerts and automated protections
● Home monitoring devices
● Elder-proofing services
● In-home and out-of-home activities
● Home delivery services
● Matching solutions (matching caregivers
and companions to seniors)
● Care services that provide better
information, better options, and price
transparency
Boomers haven’t saved
for retirement
Their homes weren’t
built for them to age in
They will increasingly need
help from caregivers
● In-home mobility issues
● Loneliness if home alone
● Trust and safety issues
Financing solutions to plan
future and unlock value
Products and services to
enable more comfort. living
Services to support seniors
with daily tasks
Technology will transform the aging process by providing...
4. ● Only 54% of boomers say they have retirement savings
● Out-of-pocket costs for care are increasing (single elderly
woman pays $8.4K/year on average)
● Seniors with savings take more conservative investing
approach as age increases; lower capital gains
Some believe aging-at-home solutions will flop because
seniors don’t have sufficient funds to cover at-home needs...
All major sources of funds are on decline
Medicare & Medicaid
Personal savings
Long-term care insurance
● Recent House Republican budget proposals call for $2T
reduction in CMS spend over 10 years
● Proposals advocate for per capita spending cap
● Fewer seniors are opting for LTC insurance, given increasing
premiums (result of insurers underestimating claims)
● Seniors with LTC insurance are reducing benefits and length of
coverage to lower bill
Seniors rapidly drawdown wealth over time
(percentile)
Source: Federal Reserve SCF, DQYDJ, Amada Senior Care, The Fiscal Times
5. Source: Federal Reserve SCF
● Target seniors during early phases of aging,
before spending down assets
● Improve quality of life for seniors and caregivers
(strong value prop for both)
○ No lower-cost substitute
● Help seniors save money in future (viewed as
positive ROI investment) - e.g., extend time
before in-home care is needed
… however, seniors still receive income from several sources;
the best solutions will provide positive ROI to seniors
Non-earning seniors receive income from
Social Security, assets, and pensions
The best solutions will ...
Target seniors early
Help seniors save money
Provide essential benefit
Unlock net-worth
● Enable seniors to extract value from most
valuable assets (e.g., home)
Median annual Social
Security benefit is
~$15K
% of seniors 65+ receiving funds
from the following sources:
Median annual income of
seniors 65+:
6. Middlers are older adults living with great vitality.
They’re fiercely independent and tech-savvy,
owning smartphones, smart TVs, and sometimes even
smart homes. Middlers enjoy long vacations, home
improvement projects, and are focused on
staying healthy. The majority of today’s Middlers are
part of the Baby Boomer generation. But let’s be clear —
not all Boomers are Middlers, and not all Middlers are
Boomers. Membership in this group is about a state of
mind and way of life, rather than a specific age.
Startups shouldn’t think of ‘seniors’ as one group, but should
consider different sub-segments
7. There are several strategic choices to make when
building for seniors
1. Who is the buyer? (senior, adult
child, caregiver, other?)
2. What are the relevant marketing /
distribution channels?
○ DTC or retail?
○ Health plan (e.g., Medicare
Advantage)?
Key strategic decisions Additional considerations
● Product features
○ Multi-user access
○ Accessible features (text size,
voice-to-text)
○ Personalization / product line
extensions
● Service delivery
○ Screening and matching for
service providers
○ Time-windows for delivery