Outdated stereotypes of older adults fumbling with technology used to be everywhere. Older adults don’t want new tech. They can’t figure out how to use new tech. They won’t pay for it. The list goes on. But the reality is that, over the last decade, older adults have been increasingly adopting technology and the pandemic only accelerated the trend. The adoption of technology by older adults is also enabling the delivery of care in the home and creating the conditions for older adults to do things like accessing telehealth services and utilizing monitoring devices. Additionally, those aging into the 65+ bracket are increasingly tech-fluent and will create a large market opportunity for technology to support their aging.

Best Buy is a best-in-class example of a retailer that has worked to become a care destination. They began their journey focused on senior health in 2018 with the acquisition of GreatCall, an emergency response product and service offering for the aging (PERS devices, plus a scaled call center service). They’ve continued to parlay their brand recognition as a trusted purveyor of care products and services to deepen their relationship with consumers around health. In the summer of 2023, they launched their revamped Lively program to provide older adults with tools and services that support their health, connectivity, and comfort in their homes, including access to medical and non-medical assistance, caregiver support, and emergency hotlines.

Apple has also been increasingly focused on developing health-related technologies and services, such as the Apple Watch and the Health app. These products have features like fall detection and heart rate monitoring that could be useful for older adults. Additionally, Apple has been working on developing features related to aging in place, such as the ability to control smart home devices through Siri. As more companies see the opportunity to serve older adults, the technology and services to enable independent living will continue to improve.

New models of housing are enabling seniors to age in place by providing them with safe, comfortable, and accessible living environments that support their well-being. These models range from purpose-built retirement villages to naturally occurring retirement communities, multi-generational co-housing, accessory dwelling units (ADU), and more. According to a study by the National Association of Home Builders, the demand for multi-generational housing is expected to grow by 50% in the next decade (after quadrupling to 59.7 million between 1971 and 2021 (Pew)). This growth is driven by a number of factors, including the rising cost of housing and an increasing aging population with care needs. ADUs are also increasing in popularity, as local governments become proponents and even incentive building more. They’re ideal for seniors who want to live independently, while still having a caregiver nearby. As of 2023, ten states and D.C., as well as many municipalities, have adopted or revised laws to encourage ADU construction and the AARP has also helped ADU legislation pass in 17 cities in the past two years alone

According to recent research done by AARP, 9 in 10 seniors want to age in place. But the desire far outpaces the reality: currently only 10% of the 115 million U.S. homes are ready to accommodate older residents with features like an accessible bathroom and few stairs. The National Association of Home Builders in collaboration with AARP and others developed a certification for aging in place specialists and Lowe’s and Home Depot have also jumped in with their own lines of aging-friendly products and services. Startups such as Rosarium Health and The Helper Bees have also popped up with solutions for payors and families to make aging at home safer.  All of these initiatives are aimed at seizing the aging-in place and home-based care market, which we estimate to be upwards of $151 billion. 

Some predict that there will be more people over the age of 65 than those under the age of 18 as soon as 2034 in the U.S.; not all of those people are thrilled about growing older, and as such, there is big demand for innovation that will put off what was once thought of as inevitable. Longevity technology aims to improve quality of life and promote longer life spans through discovery platforms, drugs, renewal therapies, gene therapies and more.  The investment in this space is substantial. The Longevity Investment Report reported $5.2 billion of investment across 130 deals in 2022, up 77% from 2020.¹ 

Pioneers like Jeff Bezos are seeing life extension technologies as ripe for investment as evidenced by his investment in Altos Labs, a biotech startup that aims to research the biology of aging and extend human lifespan. Economic data suggests that lowering mortality and frailty at every age and increasing life expectancy for US citizens is worth $700 billion annually.² Individuals who have a higher quality of life for longer will be less likely to need care and more likely to live independently.

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Family caregivers are the backbone of the long-term care system in the U.S. Most of us will either be a family caregiver or need one at some point in our lives. With a limited supply of professional caregivers, the need for family caregivers is stronger than ever and will continue to grow as the number of available family caregivers shrinks relative to the number of older adults in need of care. 

As an acknowledgment of the unique value that family caregivers provide and the urgent need to support them, the U.S. Department of Health and Human Services adopted a National Strategy to Support Family Caregivers in 2022. The primary goal of the strategy is to provide caregivers with training, support, and opportunities for rest and self-care. It highlights 350 actions that the federal government will take to provide family caregivers with much needed support, including respite services.

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Addressing Social Determinants of Health, such as nutritious food and safe housing, can significantly improve health outcomes. For example, one study found a marginal increase in home-delivered meals for older adults was associated with a $109M reduction in Medicaid costs, as well as a reduced likelihood of entering a nursing home. Since each state operates its own Medicaid system, it is up to each State as to how much to cover social determinants of health. Excitingly, at least 33 states have chosen to include some form of SDOH related coverage for certain eligible populations through managed care contracts or the Section 1115 waiver. 

Another state-level program that is attempting to provide additional aid to seniors is the Washington Cares Fund, which is a first of its’ kind program in the U.S. Through an established payroll tax of 0.58% on employee wages, the fund has been created to pay for long-term care services, the majority of which are not covered Medicare or private health insurance. This state-level support is giving elders much needed financial aid to cover expenses for care, renovation, and much more, and is an exemplary program for other states looking to support aging expenses.

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As the number of older adults continues to grow, family members are taking on increasing responsibilities as caregivers to support their loved ones. While much attention is brought to physical care, a survey by Merrill Lynch and Age Wave found that 92% of caregivers said they provide financial caregiving versus the 64% who said they provide physical care. Fortunately, innovative companies like Carefull and Retireable are working to ease the burden of financial caregiving with financial products specifically tailored for older adults. These products aim to solve issues that are typical for this demographic and can cause their caregivers unnecessary stress. One example is financial scams, which are on the rise with >90,000 older victims reporting fraud in 2021, resulting in $1.7B in losses. Carefull’s services guard older adults’ money, credit, and identity from threats, thieves, and everyday money mistakes. Retirable is a financial services company that helps adults age 50 and up prepare for retirement and gain the financial stability they need to enjoy retirement. While startups like these continue to grow in the space, the opportunity to serve this demographic becomes increasingly obvious for larger financial institutions, as well.

In the United States, there are an estimated 53 million individuals providing unpaid care to family members or friends. These individuals are doing critical work and are sacrificing their own personal and professional lives to do so, as well as often having to work less hours, if they can still work at all. According to an AARP study, three-quarters of family caregivers reported regularly spending their own money on caregiving expenses, averaging $7,242 annually, or 26% of their income. Despite the significant financial and temporal investment, these caregivers are not compensated for their efforts, and insurance coverage for products can only go so far. Some government programs have the ability to pay family caregivers, but they are complicated to navigate and difficult to access. Family caregivers need more resources and information to ensure that they are getting the funds available to them, and insurers and government need to find new solutions for providing financial compensation for the work unpaid caregivers are doing.

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Family caregivers often provide the most attentive care to their aging family members, but many have had little training to do all of the tasks that healthcare professionals would typically do. From medication management to assisting with activities of daily living, the responsibilities of caregiving can be both tiresome and complex. Additionally, the cost of lost income and the mental and emotional burden of caregiving for an aging family member can be significant; however, hiring a professional caregiver often presents its own issues. High quality paid care support is still hard to find, trust, and keep for too many Americans.  

As technology and advancements in healthcare enable people to live longer, the cost of these additional years of life add up. As the population ages, there becomes a greater need for healthcare services such as hospitalization, medication, and therapy, which can drive up costs for individuals, families, and governments. Additionally, older individuals may require long-term care, such as nursing home care or assisted living facilities, which can be expensive. The cost of these services is often borne by individuals or their families, and many people may struggle to afford them. According to a study by HealthView Services, a healthy 65-year-old woman who lives until 89 will incur about $175,000 more in lifetime healthcare costs than a same-age woman with Type 2 Diabetes who lives until 81, because of the additional monthly premiums and out of pocket charges over those eight years. 

National health spending, which includes the federal government and households, is expected to grow at an annual rate of 5.1% between 2021 and 2030 according to the Centers for Medicare and Medicaid Services, however the annual cost of living adjustment to social security will average only 2.4% over that same time period, leaving a significant gap for those reliant on social security to cover their expenses as they age.¹ In addition to the healthcare costs associated with an aging population, society will face other costs such as a decrease in the workforce population, which can impact economic growth and tax revenue.

While inflation has led to struggles for many, it’s hitting those over 65 even harder because they typically live on a fixed income and are unable to increase their paychecks overtime or with bonuses. Millions of Social Security recipients received an 8.7% boost in their benefits at the end of last year, but prices remain stubbornly high and seniors are likely to see increased costs.  Long-term providers will eventually seek to be compensated for the increased labor costs, supply chain issues and technical innovations that have all occurred during the previous contract term, which will continue to hit the wallets of seniors. Additionally, inflation can also impact the retirement income of seniors, which can make it more difficult for them to afford elder care services. If the cost of living increases faster than retirement income, seniors will find it difficult to pay for the care they need and may be put into difficult situations where they are choosing between receiving care and paying for it. 

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Loneliness has been labeled an epidemic by the U.S. Surgeon General and it plagues people of all ages, but it can be especially impactful for seniors. Older adults have long reported feelings of isolation and loneliness and those feelings were exacerbated by the COVID-19 pandemic when seniors were forced to pick between the very real risk of infection or the equally real risk of isolation. According to a study by the University of Michigan, feelings of loneliness, isolation and lacking social contact are finally subsiding three years into the pandemic; however, 1 in 3 people between the ages of 50 and 80 say they sometimes or often still experience these feelings. 

The impact of chronic social isolation and loneliness extends beyond someone’s mental health and can have significant impact on their physical health and overall well-being. Research done by AARP shows that Medicare spends $6.7 billion per year caring for socially isolated older adults. Although the pandemic pushed more people into virtual communities, there is still much work to be done around how society can better engage with and become more inclusive for older adults.