In just 10 years, 54 percent of middle-income seniors will be unable to pay the yearly costs of $60,000 for assisted living rent and other costs, even if they committed 100 percent of their annual financial resources, according to a report released this morning by the National Investment Center for Seniors Housing & Care (NIC).
The study was conducted by researchers at NORC at the University of Chicago, with funding provided by NIC, with additional support from AARP, the AARP Foundation, the John A. Hartford Foundation and The SCAN Foundation. The results will be published in the May issue of medical journal Health Affairs.
The 54 percent data point represents a total of 14 million people over age 75, and accounts for seniors who would sell their homes to afford seniors housing. If those middle-market seniors were to not sell their homes, the percentage rises to 81 percent that could not afford assisted living.
The study projects that by 2029, 60 percent of U.S. middle-income seniors over age 75 will have mobility limitations (8.7 million people), 67 percent will have three or more chronic conditions (9.6 million people), and 8 percent will have cognitive impairment (1.2 million people). For middle-income seniors age 85 and older, the prevalence of cognitive impairment nearly doubles.