The Future of Senior Living: Clearing the Cloudy Crystal Ball

Increasingly, senior living communities will encounter people who don’t want a sedentary lifestyle. Preparing for the future of senior living means revisiting much of what we know about what older adults want, need, and can afford.

Pursuing Wellbeing and Longevity

It is important to figure out how to respond to the needs around well-being and longevity. Michele Holleran, CEO, DeArment Consulting, LLC states, “I define longevity not only as the span of someone’s life but the quality of that lifespan. I think putting in place things that are going to feed that quality is important.” These include new culinary programs, exercise paths, gardening activities, and efforts that dramatically lessen loneliness and isolation.

Accommodating the Younger and the Older

Boomers, particularly younger ones, and Gen Xers are much more conscious about their health. At the same time, these younger elders increasingly want to age in place, so home and community-based services will dominate the landscape as communities start to look more outward and create partnerships that enable wellness, lifelong learning, and intergenerational efforts. “There is a movement now to create communities and campuses that are much more vibrant and attractive to those younger cohorts of consumers,” said Holleran.

Michele Holleran, CEO

DeArment Consulting, LLC

In the meantime, people are delaying their entrance into senior living communities. Holleran said, “We have seen an uptick in the age of people entering senior living communities. I think the average age now is about 82. It used to be 77.”

The Middle Market and More

Holleran observed, “Younger consumers have not necessarily planned well for their retirements, and they don't have the money for big down payments in life planning communities.” The numbers back this up. For instance, one recent survey showed that 27% of Americans have no retirement savings, including 7.29% of those aged 59 and older. Holleran said, “I think that you are going to see more flexibility when it comes to payment models.” At the same time, watch for innovative middle-market concepts, such as cozy home communities. “The idea here is that you live in your own house in a small neighborhood with people who have shared backgrounds and shared interests,” she said.

There will be a huge emphasis on socialization and volunteerism, so communities must emphasize opportunities for connections and socialization. Holleran said, “We know post-COVID that social isolation is a serious issue that contributes to early death, so I think the middle market is going to see a focus on this.”

Among the other innovations we can expect to see in senior living, said Holleran, are:

• The influx of older females who don’t have children. These individuals are likely to have fewer family connections and depend more on neighbors and friends for socialization and support (e.g., help with transportation and shopping).

• Residents will expect to be more involved in decision-making in their communities. “There is a lot of support for resident rights movements, and we will likely see more of this,” said Holleran. At the same time, watch for a greater focus on needs assessments that will allow communities to determine what needs there are in the greater community so they might be able to influence and impact older adults beyond their campuses.

• Growing availability of ‘ala carte’ services. For residents with limited budgets, they may prefer or need to pick and choose services and amenities to fit their needs and budgets.

• Separation of some amenities from living spaces. For instance, a Wellness Center could be separate but easily accessible to create more of a mixed-use feel that creates energy between residents and people coming onto the campus to use these amenities. Expect to see more campuses opening some of their dining venues to the outside community.

• The movement away from country club living. “That’s a model that’s not popular with the boomers,” said Holleran. Younger seniors are more interested in engaging with people from different backgrounds and ages.

Planning Ahead

Strategic partnerships, particularly more informal alliances, are front and center right now, said Holleran. For instance, three providers that had traditionally been “competitors” find a benefit in an alliance where they share knowledge and have collaborative conversations around trends and innovations that they can work on together. These are part of most organizational strategic plans these days, she noted.

“Most strategic plans I'm seeing are starting to vertically integrate. In other words, they're putting pharmacies and rehab onsite and making sure that their product mix allows them to maximize their dollars,” said Holleran, adding, “I see a lot of physician clinics being developed on campus. Because we have not customized and personalized offerings to the residents, the way we should, I see life coaching as a huge opportunity of the future.”

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