What used to be called old folks’ homes have adapted over time and now offer so much more than housing for people over a certain age.
It’s a decision most of us will have to make: living the last years of your life—how to make them count and where you want that to happen. While plenty of retirees make sound plans for their next chapters, a lot don’t, and end up with their choices diminished because they didn’t do their homework and plan ahead.
There was a day when a “nursing home” was the extent of what was available to seniors. But with changing demographics and savvy consumers ratcheting up expectations, senior living options are ever-evolving.
Nursing homes, however, are on the outs, with a 32 percent industry-wide decline over the last decade, according to the international consulting firm Plante Moran. The trend is not expected to recover, with many seniors choosing more modern and amenity-rich options. The industry is a boomtown.
A Growth Sector
The population in the UK is steadily climbing, with seniors being the segment experiencing the most growth. Within the next decade, one-fifth of the total population will be over 65 years old. This will increase to one quarter by 2050. However, only 1% of Britons in their 60s are currently living in tailor-made retirement homes.
Not only is there a supply shortage of age-friendly homes, but there is also a lack of understanding of what the elderly need from their homes. Although they tend to be categorised as one demographic, the elderly’s housing needs are highly diversified, varying across age, income, health, personal preference and care requirement. For instance, the needs of an able-bodied 70-year old will be very different from someone ten years their junior with disabilities or a frailer 80-year old.
Productive Aging
A significant trend on the rise in the senior living sector is wellness-focused living, where “productive aging” is a major driver and challenges the stereotypes and misconceptions about growing older.
As productive aging has taken hold, amenities in retirement living now include wellness centers, gourmet dining, lectures, social events, and more. Facilities such as these aim to help retirees stay socially and civically engaged enhance their quality of life.
Senior living communities are increasingly emphasising holistic health, offering fitness programs, mental health services, and personalised care plans. Activities like yoga and group exercises are now common. Nutrition and dining experiences further enhance healthier and fresher options.
The Luxe Life
Upscale communities now offer resort-like amenities in the luxury senior living space, including spas, fine dining, and social clubs that cater to an increasing demand from seniors who seek high-quality lifestyles.
With people living longer, the well-to-do are demanding more than the humble offerings of the retirement villages of yore. According to a February 2022 report by Savills, most people moving into retirement housing are downsizers – and they have money to spend.
Being able to get a foot on the property ladder much earlier than today’s generations, and having benefited from stratospheric house price growth over the years, the over-65s possess substantial equity in their residential real estate. In England and Wales, the value of homes owned by that age group totals nearly £2.0 trillion, 37 per cent of which is in London and the southeast.
With money no object, retirees are demanding amenities such as best-in-class dining experiences, gracious communal spaces, a beauty salon, wellness suite, an art studio and theatre. As well as beautiful outdoor spaces, seniors are also asking for additional services including 24-hour door attendant, concierge and weekly housekeeping.
Money Matters
Although luxury retirement developments are on the rise, the vast majority of specialist older person’s housing in the UK is affordable housing. According to a 2023 report by the Centre for Ageing Better almost one in five pensioners are living in relative poverty. Furthermore, there is a huge number sitting in the middle; not eligible for affordable housing, but equally not able to afford some of the higher-end specialist homes that are on the market.
If we can tap into this group, the market could be hugely expanded, with positive impacts for those who want to live in specialist retirement housing, as well as for those who want to invest in it. Scaling up the sector will itself make it more affordable. More flexible payment options, such as shared ownership and rental, will certainly help expand the sector.
Community Matters
Community support is one of the pillars of quality of life, especially as we age. The concept of community is an important reason why seniors choose to downsize to a retirement home rather than remain isolated in their long-held family home.
In the end, productive aging is contingent on choices, and how you choose to age and where you choose to do it are the most important ingredients.
Once, seniors were an invisible demographic, warehoused in dreary institutional settings, largely overlooked. Now, retirement living can mean an exciting and vibrant chapter, where contributions older adults make as volunteers, neighbours, employees, leaders, and caregivers are celebrated and rewarded.