SNAPSHOT: BEYOND BOOMERS: UPSCALE RETIREMENT COMMUNITIES

Boomers as “Business Managers” For Elderly Parents:

At a Glance…

The Greatest Generation

Note: Predicted—A downturn for the coming decade of Assisted Living, then a boom…(First boomers to reach mid-70’s and beyond until 2021, and midpoint of boomers in their mid-70’s is 25 years away.)

• Less than 15 per cent of GI generation is still with us
• The “silent” generation is present and accounted for—but 30 percent smaller than either GI generation or Boomers.

Who Makes the Decision

Quantitative:

• Boomers influence 78% of purchasing decisions of their elderly parents
• Boomers spend $100 billion annually on health and caregiving-related purchases for their parents
• Intel estimates that within the decade, two out of three boomers will be caretaking their elderly parents; General Motors puts it at 21% currently
• Women influence 80 percent of all consumer purchases including multi-generational decisions
• Women handle 75% of family finances, control half of the private wealth and account for at least $2 trillion in annual consumer spending in the US
• Daughters (56%) are more likely than sons (44%) to be acting in role of primary decision-maker regardless of who is the “officially designated” responsible party, i.e. “the older brother” vs. “the younger sister”, “the eldest child” (any gender) vs. “the responsible child” (who is actually doing the caregiving, usually somebody in the same community as the parent)
• Ultimately, in the majority of cases, it is the elderly couple who makes the decision—but based on information supplied by adult children and “the gatekeepers” (i.e. estate lawyers, financial advisors, social workers)

Qualitative:

• Decision regarding parents’ relocating is collaborative and emotional, exposing dysfunctional cross and inter-generational relationships
• “Best case scenario”: adult children function as “business managers”, sorting through possibilities and presenting top couple of choices for parent(s) to make final decision
• Other influencers:
• Social workers (independent—a growing field; hospital-related)
• Estate planners: legal and financial
• Physicians
• Local aging non-profit resource centers
• Religious leaders
• Friends/families who have already moved

What Instigates Decision to Change One’s Residence?

• Loneliness (esp. when friends/family have moved away)
• Crisis (i.e. loss of spouse, health limitations, no longer driving, and so on)
• To have parent closer by (convenience/ relationship/concern about health/safety/assistance with offspring’s offspring)
• Need for or anticipating different levels of continuing care

What Qualities are Considered?

• Convenience/Proximity to primary caregiver (defined loosely)
• Safety (i.e. gated community) and ease of transportation
• Quality of continuing care (as well as step up ease)
• Activities/guided trips
• Resources, i.e. walking paths, beauty of surroundings
• Ability to accommodate physical changes, i.e. wheel chair friendly, no steps, etc.
• Like-minded community, a feeling of being among one’s own
• Affordable/fixed costs (however affordable is defined—emphasis on ‘fixed’)
• Good medical facilities and access to top-rate physicians

What Sources Influence the Decision-Making Process?

• Direct knowledge of others who have made the move and have good things to say
• In-direct knowledge of others as above, but from professional referrals
• Internet (Note: taking a page from the timeshare industry, by using Internet marketing, Marriott was selling $650,000/month four years ago; now, it’s $6 million/month.)
• Community source/resource books
• Competitive review personal visit based on geography/reputation/cost (initiated be ad/brochure and preceded by phone conversation with as highly-positioned a representative as possible)
• Physical facility and surroundings are important, but who are the residents are most important. Try to have a resident-buddy on the tour and visit residents in the process of doing activities.

What Other Third Party Partners Should be Considered?

• Organizations geared to boomers and beyond
• Websites such as Eons.com (to reach boomer influencer)
• Sourcebooks such as Washington Post’s “Guide to Retirement Living’s The Source)
• Alumni Associations
• Religious and Affinity Groups
• Professional associations for referrals, i.e. associations of estate lawyers, social workers, financial planners, etc.

What Spokespeople are Respected?

• Authenticity is most important quality—believable? Really living in the residence environment? (i.e. Did you know an astronaut lives here?)
• Someone from elderly parent’s age group, someone from boomer age group or preferably a well-known parent/child team modeling the extended family as seamless team