Michele Holleran, CEO of DeArment Consulting, joins BRN to breaks down how senior living is evolving and what that means for older adults and younger generations planning for the future.
Jeffrey Snyder, Broadcast Retirement Network
Joining me now is Michele Hollerns. She’s the Chief Executive Officer of DeArment Consulting. Michele, always great to see you.
Thanks for joining us on the program this morning.
Michele Holleran, DeArment Consulting
Oh, my pleasure. I love being on your show.
Jeffrey Snyder, Broadcast Retirement Network
Well, we appreciate it. And there’s so much going on around aging and retirement. This morning, we’re going to talk about senior living.
And I was expressing to you that I have loved one who was just kind of exploring the different options. Michele, there’s a lot of options. And according to research, a lot of new models out there.
What say you?
Michele Holleran, DeArment Consulting
Yeah, absolutely. It’s a very exciting time to be in this field. And, of course, I have worked with Life Plan Communities, also known as Continuing Care Retirement Communities, for over 30 years.
And I can tell you, if you can afford them, they are wonderful places to live, to socialize, to avoid isolation, to be intellectually stimulated, to become a lifelong learner. And the opportunities for personal growth have never been greater. These places are becoming less about the hospitality model and amenities and more about connection and finding purpose.
And most people come in in their early 80s to these places, Jeffrey. But I will tell you that most of them, the vast majority of them, because I do the research, say they wish they would have come much earlier because they’re just such stimulating environments for older adults. So, having said that, there are many new models to choose from as well.
If you don’t have the kind of means, and many of us don’t, who are in the baby boomer population, we just haven’t saved as much as we need to save in order to be able to afford some of these high entrance fees and ongoing monthly fees. So, let me talk about a few of the new options that are out there. And some of them aren’t brand new, they’ve been around, but some of your viewers may not have studied this as extensively as I have over the years.
So, I don’t want to assume that they know about these models. One of the more popular models out there that has been around for a while are called naturally occurring retirement communities. And these are ones that are in neighborhoods, usually in urban areas, like Baltimore or Boston.
And they’re very loosely organized by groups of volunteers and sometimes paid staff. But typically, what they do is they charge a nominal monthly fee, and they organize around activities, lectures, outings, and things of this nature, but people still stay in their homes. And so, you know, they geographically come together for block parties and other kinds of socialization.
So, that’s kind of the most loose, organized model that there is out there. There are other ones that are kind of hybrids between life plan communities and the stay at home models. As an example, there’s an organization called Kendall, and they have a model that’s called Kendall at Home.
And so, you join for a membership, which may seem like a lot of money to some people, it’s like $30,000 to $50,000 to buy in. But what that does is it gives you access to a personal concierge who can help you locate services that are reputable, like housekeeping, lawn services. It gives you access to the facilities at a nearby life plan community.
So, you could access, for example, their fitness center, the cafes, their activities, and cultural programming. And so, it’s kind of a quasi model. And then there’s something called longevity day communities that’s gaining in popularity that my friend Pilar is introducing to the marketplace.
And these longevity day communities take the place of what we used to call adult daycare. They skew toward a younger population of older adults. Again, you stay in your house, but during the day, you go to these places for several days or five days a week, and you get a meal typically, and there’s all kinds of activities.
And some of them, especially PACE programs, which is the program of all inclusive care for the elderly that you might know of. We have many of those cropping up around the country. But many of those provide transportation to and from.
Now, those are not the same as the longevity day communities because they are more targeted toward a lower income population, these PACE programs. The longevity day communities are largely private pay. So, Medicare and Medicaid don’t get involved in paying for those, but the models are somewhat similar.
And I would imagine since the longevity day communities are very focused on scientific wellness and assessments and things of that nature, that they would have a clinic associated with them in the future. So, you could get some of your care right there during the day. Home and community-based services is big right now.
These are for people who either need short-term or longer-term care, such as home health care, personal meals, adult daycare, durable medical equipment, other kinds of personal support services for folks who need help with bathing, help with eating, some of those challenges. And then there are more and more intergenerational communities that are popping up. Many times, these retirement communities affiliate with a university, and therefore, they have students on campus.
And sometimes, the students stay at the home of the retiree in exchange for services, and they don’t pay any rent or they pay a reduced rent than what they would. And sometimes, that’s an add-on adjacent quarters or actually just renting a room.
Jeffrey Snyder, Broadcast Retirement Network
I’m sorry, I was going to ask you, I mean, let me kind of phrase it this way. It sounds like there’s a lot of options out there and there’s a big evolution. I guess a question for you, is the US ahead or maybe at the same level or maybe even behind some of the other industrialized Western countries when it comes to these types of arrangements and dealing with our elderly?
Michele Holleran, DeArment Consulting
Well, it’s a mixed bag. I would say we’re ahead. I mean, I definitely have a bias.
I think our retirement community sector is very innovative right now, very creative, very responsive to what consumers want and are anticipating their needs. But there are Scandinavian countries, for an example, that are fairly progressive, and some of them have what are called Alzheimer’s villages, where they have folks with dementia who are typically rather restricted in the places they’re allowed to go. And they, for instance, create whole communities around this and normalize the conversation around dementia.
And so, in that regard, I would say there are some models abroad that are more progressive, more risk-oriented than we are. We’re very still in this country constrained, especially at the higher levels of acuity, by the federal government, as you well know. And so, there are certain restrictions legally to what we are able to offer.
And so, there are some hoops that have to be jumped through for some of these. But there are more and more models being offered every day. And one of the popular are these smart homes, where you can have your house wired and retrofitted around the fact that you’re aging.
So, lights that come on automatically, burners that turn off when a certain amount of time has gone, smart toilets that read your vitals, and all kinds of wiring and things that are technology-based that allow us to really track someone. Now, sometimes residents feel that that’s a little big brother-ish. But by the same token, if you don’t have children or loved ones who are nearby, and you live alone, and some enormous number of folks now don’t have children, or they live alone without a spouse or a significant other, I think the number is 40%, mainly women, these smart homes can really be lifesavers.
Jeffrey Snyder, Broadcast Retirement Network
It sounds like, Michele, we’ve moved very far ahead of the clapper. Remember the clapper? Clap on.
Yeah. The audience, I’m old enough to remember that. I remember the shuffling.
Michele Holleran, DeArment Consulting
As am I.
Jeffrey Snyder, Broadcast Retirement Network
Yes. But I remember, but it seems like in all seriousness, I guess, I think the most important thing here, I want to get to the selection process in a second, but I think from my perspective as someone who, I’m in my 50s, I’m going to be in this place at some point, maybe sooner, maybe later. I don’t know.
But it seems like the US in particular and other countries are really adapting, trying to find what fits or at least provide a multitude of options for people to consider. Yeah.
Michele Holleran, DeArment Consulting
Well, the boomers have really changed the landscape. I’m a boomer. I’m more in the middle section, but the oldest boomers are turning 80 this year, Jeff.
That has really put some healthy pressure on our sector of senior living to anticipate needs, to be in touch with needs, and to understand what’s going on. One of the realities is that we have forgotten the middle market, meaning that we have not enough, but we have a significant amount of low income affordable housing for seniors. As I said, we never have enough.
There are many people who want to get into those places who can’t yet. They’re on waiting lists. It’s a lottery system.
Some people will never access that. Then we have the high end, but the middle market has been forgotten. We’re spawning many more new models that are geared toward people who have incomes in the range of, let’s say, $25,000 to $75,000 in income and assets, who cannot afford this end of the spectrum and are not eligible for the lower end of the spectrum.
They’re caught in the middle. I think we’re doing a really good job coming up with alternatives right now. Again, we can’t spawn these quickly enough for the demand that’s going to be out there because this is the biggest cohort of aging Americans that we’ve ever seen come through our doors.
Jeffrey Snyder, Broadcast Retirement Network
Two follow-up questions for you. We’ll bring you back again because I enjoy talking to you. This is an area, clearly, where we need to have conversations and get more people informed.
If I’m thinking about this for a loved one, for myself, someone in that boomer cohort, what do I think about in terms of what’s right for me? Is it really just based on my wallet or my digital wallet, my Apple Pay wallet? I could be limited depending on how much money I have.
That’s my first final question.
Michele Holleran, DeArment Consulting
It’s a legitimate question, Jeffrey. I think that we have to recognize that even if people don’t have a good annual income, they might have assets that they could draw in from. It’s not just about money.
It’s also about something that my friend Ryan Frederick talks about. I don’t know if you know Ryan. I do not.
He has a company called HERE, H-E-R-E. That’s based on the fact that there really needs to be place planning. There are some places that are much more conducive to retirement than others.
It’s not just about the weather. It’s just not about how close you are to your relatives or loved ones. It’s also about things like taxes.
It’s also about accessibility. It’s also about the culture of a place and whether or not like-minded people are going to be there or not with you. We do know this.
Isolation is really a bad thing as you grow older. Having connection is extremely important. It’s one of the hallmarks of blue zone communities and countries.
Making sure that you have the right socialization, in my view, is equally important to considering the financial or the proximity to your relatives. They say now to be isolated extensively takes seven years off of our lives.
Jeffrey Snyder, Broadcast Retirement Network
I can believe that. My last question for you, Michele. We’ve got a lot of younger people, obviously, in the country.
We don’t just have mature people like ourselves. Is this something they should be thinking about now? I don’t want to be Debbie Downer.
I don’t want to spoil someone’s entire life. I come from the retirement world, so the retirement savings world. We were always taught early on in my career that age 65, you check out and you sit on a rocking chair.
For these younger kids, should they be aware of these options? Younger people, I should say. Be aware of these options and really bake that into their retirement assumptions.
It would seem to me that you can’t figure out what your longevity is going to be because that’s up to your creator. You probably want to have an idea because that helps you figure out how much you need to save in order to live comfortably at the end or later on. Not at the end, later on.
Michele Holleran, DeArment Consulting
I think the financial question is a real one. I defer to experts like you on that and how to do that. The two things that I would say, number one, younger people have to start understanding that they will eventually get to this age too.
It behooves them to create language and a culture that is not ageist because one day they will be there. Ageism is a real plague in our society. How we think about our own aging, whether that’s a positive experience or a neutral or a negative experience, makes a big difference.
If I’m a young person and I’m dreading getting older and I’m holding on for dear life to my youth, you’re going to be sorry one day. Do not take that attitude. That’s one way that we can start thinking as a younger person about preparing for our aging and our retirement.
Number two, I would say that people are in the workplace a lot longer. If your goal is to retire at 62, you might want to think again. You might want to keep your skills sharp and flexible and create new opportunities for yourself as you get older.
Get as many opportunities as you possibly can, as many skill sets as you can, so that you can have some financial flexibility. I’m still working. I’m 70 years old.
I plan to keep working until I’m 80, at least. I’ve had to reinvent myself several times. I started out as a researcher.
Now I’m a strategic planner. I’m a leadership consultant. I am an executive coach.
I think reinventing yourself career-wise. Finally, I would say, pay attention to your health span. It’s not just about how long you live.
It’s how well you live. Jeff, I have to correct you. It’s not just about our creator and our genes.
It’s also, we have some measure of control. Certainly not 100%, but I would say at least 50% of how long and well we’re going to age is up to us. Take care of your lifestyle choices at a young age, and it will really serve you well as you get older.
Jeffrey Snyder, Broadcast Retirement Network
I will certainly take that correction. Michele, it’s always great talking to you. Thanks for the senior living, senior care, planned communities lesson.
Look, we’ll have to bring you back. We look forward to having you back again very soon.
Michele Holleran, DeArment Consulting
Thank you, Jeffrey.
