The looming care gap — what is it?

Since the early 2000’s, the term sandwich generation has been used to describe the stage in life when Americans are “sandwiched” in between the needs of their children and their aging parents. If you haven’t personally felt this pressure in your own life, chances are you know someone who has.

Just as Baby Boomers are beginning to reach their own golden years, they are facing a new challenge that is sweeping across the U.S. — the rise of the solo senior.

The solo senior is a demographic of retirees described as people who are aging without a spouse or an adult child to help care for them. Research today shows that 1 in 5 people consider themselves a solo senior. With 10,000 Baby Boomers turning 62 from now until 2030, that means 25% of them are preparing to face the needs associated with aging all alone. These Baby Boomers find themselves facing what’s been called the looming care gap.

Three trends in our society have contributed to putting Baby Boomers in this generational predicament. MIT Age Lab Director, Joe Coughlin, has been credited as calling these trends the 3 D’s — divorce, distance and debt.

• According to the Pew Research Center, the divorce rate has roughly doubled since the 1990’s for people who are currently 50 or older. While divorce rates for younger Americans may be declining today, statistics for Baby Boomers continue to rise. The impending retirement years have not thwarted many older couples’ decisions to split. As a result, America has a growing number of “grey divorcees” — grey-haired couples who decide to split in or near retire

ment. While divorce can put a serious strain on finances, it can also mean having no one to help provide care.

• The Baby Boomer generation has also seen an increase in the geographical distance between them and their adult children. Distance can be attributed to adult children’s employment needs, and also to an increase

in Baby Boomers who have sought retirement homes in warmer weather. While distance can be manageable, as Baby Boomers continue to age it is an added challenge they are beginning to face, when they find themselves needing some support.

• Baby Boomers, along with many Americans, are currently struggling to manage some type of debt as retirement approaches. The staggering statistics on college debt today have not only taken

a toll on students, but also on their aging parents. Guardian Life Insurance company published a study that found that Baby Boomers 60 or older are the fastest-growing category of student-loan debtors and that they feel college-related debt has significantly impeded their own financial goals. As a result, some Baby Boomers will be less able to retire early if a healthcare need arises. There is a deficit in their ability to afford the costs that are often associated with aging.

This becomes extra troubling when there is also divorce and distance to consider.

The looming care gap is now. It’s estimated that 117 million Baby Boomers will need the help of a caregiver by the year 2020. With the challenges of divorce, distance and debt affecting many retirees today, what will we do? How must care associated with aging change? When will we begin to place more financially rewarding value on professional caregivers?

Given the variety of challenges, an opportunity exists for change and the looming care gap could be a catalyst for that change. I believe our society needs to shift 1) what we think about our aging population 2) how we provide them with care and 3) how we attribute value to the people who become their caregivers.

Stay tuned for The Looming Care Gap: Part II, which will be published September 8, 2019. Tom Kalejta is an author of “Building Wealth, Protecting Dreams” and a financial advisor. He is intrigued by how Baby Boomers are changing retirement trends and lifestyles in the 21st century. He believes in inspiring his readers by talking less about money and more about reinvented possibilities — particularly when things don’t go as planned. He can be reached by emailing thomasakalejta@gmail.com.

Tom Kalejta