(January 2016) The Population Reference Bureau report, “Aging in the United States,” examines recent trends and disparities among adults ages 65 and older, and how baby boomers born between 1946 and 1964 will reshape America’s older population. In 2016, baby boomers will be between ages 52 and 70. Below are key findings from the report.

Demographic Shifts

• The number of Americans ages 65 and older is  projected to more than double  from 46 million today to over 98 million by 2060, and the 65-and-older age group’s share of the total population will rise to nearly 24 percent from 15 percent.
• The older population is becoming more  racially and ethnically diverse . Between 2014 and 2060 the share of the older population that is non-Hispanic white is projected to drop by 24 percentage points, from 78.3 percent to 54.6 percent.
• The changing racial / ethnic composition of the population under age 18, relative to those ages 65 and older, has created a ” diversity gap ” between generations.
• Older Adults are Working longer.  By 2014, 23 Percent of Men and AT at The at The the About 15 Percent of Women AGEs 65 and older were in AT AT at The Labor Force, and THESE Levels are Projected to Rise Further by 2022, to 27 Percent for Men and 20 Percent for Women.
• Many parts of the country-especially counties in the rural Midwest-are ” aging in place ” because disproportionate shares of young people have moved elsewhere.

Positive Developments

• All people ages 65 and older in 1965, only 5 percent had completed a bachelor’s degree or more. By 2014, this share had risen to 25 percent.
• Average US life expectancy increased  from 68 years in 1950 to 79 years in 2013, in large part due to the reduction in mortality at older ages.
• Of The  Gender in Life Expectancy IS GAP narrowing . The In 1990, there WAS A Seven-year Life Expectancy GAP BETWEEN in Men and Women. By, 2013, the this GAP HAD narrowed to less Within last Five years (versus 76.4 years 81.2 years ).
• The  poverty rate  for Americans ages 65 and older has dropped sharply during the past 50 years, from nearly 30 percent in 1966 to 10 percent today.

Challenges

• Obesity rates  among older adults have been increased, standing at about 40 percent of 65-to-74-year-olds in 2009-2012.
• Are there  Wide Economic disparities  across the Subgroups Different Population. AGEs Among Adults 65 and older, 18 is, Latinos, and Percent of Percent of African Americans. 19 lived in Poverty More Within last-in, 2014 Twice The Rate Among older non-Hispanic Whites (Percent. 8).
• The more of adults were divorced  compared with previous generations. The share of divorced women ages 65 and older increased from 3 percent in 1980 to 13 percent in 2015, and for men from 4 percent to 11 percent during the same period.
• More than one-fourth (27 percent) of women ages 65 to 74  lived alone  in 2014, and this share jumps to 42 percent among women ages 75 to 84, and to 56 percent among women ages 85 and older.
• The aging of the baby boom generation could fuel a 75 percent increase in the number of Americans ages 65 and older requiring  nursing home care , to about 2.3 million in 2030 from 1.3 million in 2010.
• Demand for elder care will also be fueled by a steep rise in the number of Americans living with  Alzheimer’s disease , which could nearly triple by 2050 to 14 million, from 5 million in 2013.
• The large share of elderly also means that  Social Security  and  Medicare expenditures will increase from a combined 8 percent of gross domestic product today to 12 percent by 2050.
• Policymakers can also improve the outlook for the future by  reducing current gaps  in education, employment, and earnings among junior workers.

The Baby Boom and the Future of the Economy

It’s a great question that would need an entire book to well answer. Fortunately, many books have been written on the relationship between the baby boom and the economy. Two good ones from the Canadian perspective are “Boom, Bust & Echo by Foot and Stoffman” and “2020: Rules for the New Age by Garth Turner.”

THE RATIO BETWEEN WORKING PEOPLE AND RETIRED PEOPLE

Turner explains that the big changes will be due to the fact that the ratio between the number of working people to the number of retired people will change dramatically over the next few decades:

When most boomers were in their teens, there were six Canadians like them, under the age of 20, for every person over 65. Today there are about three young people for every senior. By 2020, the ratio will be even more frightening. will have profound consequences on our entire society. 

Demographic changes will have a major impact on the ratio of retirees to workers; the ratio of the number of people ages 65 and over to the number ages 20 to 64 is expected to grow from about 20% in 1997 to 41% in 2050. 

EXAMPLES OF EXPECTED ECONOMIC IMPACT

With so few people of working age, we can expect that wages will rise as employers fight to retain the small pool of labor available. This also implies that unemployment should be fairly low. But while taxes have also to be quite high to pay for all the services that seniors require such as government pensions and Medicare.

Older citizens tend to invest differently than younger ones, asuit investors tend to buy less risky assets like bonds and sell riskier ones such as stocks. Do not be surprised to find that the price of fixing rises (causing their yields to fall) and the price of stocks to fall.

There will be millions of smaller changes as well.

The demand for soccer fields should fall as there are relatively fewer people will the demand for golf courses should rise. The demand for large suburban homes should fall as seniors move into one story condos and later to old-age homes. If you’re investing in real estate, it will be important to consider the change in demographics when you’re considering what to buy.