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How Life Care Can Protect You from The Silver Tsunami’s Wave of Rising Health Care Costs

A senior couple looking at a laptop together

The term silver tsunami was first coined in 2001 to describe the coming age wave of baby boomers (those born from 1946 to 1964) as they entered retirement. It was a metaphor for the huge number of people expected to retire in the coming decades to show the profound and disruptive effect they could have in several areas of society:  

  • The U.S. health care system 
  • The housing market  
  • The workforce 
  • Senior housing 

As a hedge against rising housing and health care prices while ensuring access to higher levels of care, many seniors are starting to consider moving to a Life Plan Community. 

The Silver Tsunami Doesn’t Affect Everyone Equally

The reality is not all four areas that were first predicted to be affected have or will impact everyone the same. However, if you’re a baby boomer living off your retirement savings, the demand for, and constantly rising cost of, senior health care could have the biggest impact on your future. 

The U.S. Department of Health and Human Services reports that about 70% of seniors 65+ will need some type of long-term care for an average of three years. According to the 2023 Genworth Cost of Care Survey, assisted living in the Clearwater area has an average monthly cost of $5,3500, and a private room in a skilled nursing community averages $9,733/month.  

Older people also tend to spend more on prescription drugs and other health care. In fact, a Peterson-KFF analysis of U.S. government data found that in 2019, older adults 65 and over accounted for 35% of health care spending while representing just 17% of the population. With numbers like these, it’s easy to see why the Fidelity Retiree Health Care Cost Estimate predicts a single person aged 65 in 2023 may need approximately $157,500 saved (after tax) to cover their retirement health care expenses and an average retired couple could need approximately $315,000. 

Life Care Can Help You Surf the Wave

With so many senior living communities options out there, which one is right for you? Choosing a Life Plan Community with Life Care – like Regency Oaks – now can help you save big on future health care costs. Plus, we offer an engaging, wellness-focused maintenance-free lifestyle to ensure you’re able to enjoy life your way and on your terms.  

Should the unthinkable happen and you need senior care, as a Life Plan Community we offer on-site care including assisted living, skilled nursing and rehabilitation. If you choose our Life Care contract option, your monthly fee will remain about the same for any care you need, providing increased peace of mind and greater financial security. 

Enjoying Today More Starts with a Smart Plan for Tomorrow

Life can be unpredictable. Making a flexible plan now that accounts for a range of possibilities can help you worry less about the future. To learn more about our senior living contracts and how a move to our Life Plan Community can help protect you against rising health care costs while also providing you with an even more enjoyable lifestyle, contact us here or by use our Community Assistant chat feature. We’d love to show you around our community and introduce you to some of our friendly residents.