The Explosive growth of Senior Care
The need for services is on the rise.
We are all getting older, but we are also living longer. The average life expectancy continues to increase, and today’s older Americans, primarily 65 years and older, enjoy better health and financial security than any previous generation.
In 2006, an estimated 37 million people in the U.S. (12 percent of the population) were 65 and older. Projections forecast that by 2030, approximately 71.5 million people will be 65 and older, representing nearly 20 percent of the total U.S. population.
In 1965, 24 percent of older adults had graduated from high school, and 5 percent had bachelor’s degrees. By 2007, the numbers had changed dramatically with 76 percent as high school graduates, and 19 percent having earned at least a bachelor’s degree.
More older people enjoy increased prosperity today than any previous generation, with an increase in higher incomes and a decrease in the proportion of elderly people with low incomes and in poverty. Those with high incomes increased from 18 percent to 29 percent from 1974 to 2007.
Women in the United States have one of the highest life expectancies in the world. But, as American longevity continues to increase, older people experience a variety of chronic health conditions that often accompany aging.
Today’s lifestyle is all about technology, keeping us informed, medical advances that keep us living longer, and the expectations of improved quality of life. It is not about a quiet evening by the fireplace with a slice of Grandma’s apple pie. In fact Grandma is probably too engaged to be baking anyway. She is part of the baby boomer generation. Well educated, financially successful, independent, and certainly not ready for “the home.”
Because life is full of the unexpected, even though the grandparents own their own home doesn’t mean there might not be a bump in the road, recovery from surgery, a prolonged illness, or the need for home care. Even those suffering from chronic illness are living longer.
Large corporations and smart entrepreneurs recognize the growing senior population as an opportunity, especially when you consider that 70% of all the disposable income in the United States is controlled by our aging population. Just look at the options for seniors today that didn’t exist in the not so distance past — life-style communities, retirement villages, assisted living communities and skilled nursing centers, not to mention one of the fastest growing segments — senior home care.
According to Entrepreneur.com, over 340 in-home senior care franchise units were sold in 2006. By January 2007, the Web site highlighted in-home senior care as one of the five major trends to watch. With $2 trillion in spending power, the aging population can afford in- home senior care. This level of service is predicted to be one of the largest start-up business trends over the next decade.
With 1,000 people turning 65 hourly, there is no doubt that senior citizens represent a vast market, one with very little competition or rivalry among providers due to its sheer size. In fact, the providers that are currently in business are actually helping each other by fueling awareness for senior care options.
Now is the time to cater a new business venture toward the senior population, while the field is wide open. Recession proof, designed to provide recurring revenue, and with an easy threshold for starting up, a well planned senior home-care business can provide satisfaction for the owner, employees who are passionate about their service and clients who have earned the right to a high level of care and respect.
Population and health
The demographics of aging in the U.S. continue to change dramatically, as the baby boomers accelerate growth in percentage and numbers and other important parameters change.In 2006, an estimated 37 million people in the U.S. (12 percent of the population) were 65 and older. Projections forecast that by 2030, approximately 71.5 million people will be 65 and older, representing nearly 20 percent of the total U.S. population. In 1965, 24 percent of older adults had graduated from high school, and 5 percent had bachelor’s degrees. By 2007, the numbers had changed dramatically with 76 percent as high school graduates, and 19 percent having earned at least a bachelor’s degree.
More older people enjoy increased prosperity today than any previous generation, with an increase in higher incomes and a decrease in the proportion of elderly people with low incomes and in poverty. Those with high incomes increased from 18 percent to 29 percent from 1974 to 2007.
Women in the United States have one of the highest life expectancies in the world. But, as American longevity continues to increase, older people experience a variety of chronic health conditions that often accompany aging.
Need for services on the rise
The number of senior citizens who own their own home is over 81 percent, compared with the rest of the population where only 68 percent are homeowners. Seniors live with either their spouse or alone, but the era of living in a house with extended family has vanished.Today’s lifestyle is all about technology, keeping us informed, medical advances that keep us living longer, and the expectations of improved quality of life. It is not about a quiet evening by the fireplace with a slice of Grandma’s apple pie. In fact Grandma is probably too engaged to be baking anyway. She is part of the baby boomer generation. Well educated, financially successful, independent, and certainly not ready for “the home.” Because life is full of the unexpected, even though the grandparents own their own home doesn’t mean there might not be a bump in the road, recovery from surgery, a prolonged illness, or the need for home care. Even those suffering from chronic illness are living longer.
Large corporations and smart entrepreneurs recognize the growing senior population as an opportunity, especially when you consider that 70% of all the disposable income in the United States is controlled by our aging population. Just look at the options for seniors today that didn’t exist in the not so distance past — life-style communities, retirement villages, assisted living communities and skilled nursing centers, not to mention one of the fastest growing segments — senior home care.
According to Entrepreneur.com, over 340 in-home senior care franchise units were sold in 2006. By January 2007, the Web site highlighted in-home senior care as one of the five major trends to watch. With $2 trillion in spending power, the aging population can afford in- home senior care. This level of service is predicted to be one of the largest start-up business trends over the next decade.
Who will become senior care providers?
Sarah Wilson, from Entrepreneur.com, identifies in-home senior care franchise buyers as “corporate refugees, downsized, laid off, or fed up, these are hungry, second career executives who need or want to serve a bigger purpose.”With 1,000 people turning 65 hourly, there is no doubt that senior citizens represent a vast market, one with very little competition or rivalry among providers due to its sheer size. In fact, the providers that are currently in business are actually helping each other by fueling awareness for senior care options.
Now is the time to cater a new business venture toward the senior population, while the field is wide open. Recession proof, designed to provide recurring revenue, and with an easy threshold for starting up, a well planned senior home-care business can provide satisfaction for the owner, employees who are passionate about their service and clients who have earned the right to a high level of care and respect.
