← Back to Blog

Protecting Your Wallet: Strategies to Combat the Silver Tsunami of Health Care Inflation

A couple looking at financial information together on the laptop

To help describe the coming age wave of baby boomers (those born from 1946 to 1964) as they entered retirement, the term silver tsunami was coined as a metaphor for the huge number of people expected to retire in the coming decades. It was meant to show the profound and disruptive effect they could have in several areas of U.S. society, including the following:  

  • The health care system 
  • The housing market  
  • The workforce 
  • Senior housing 

To hedge against rising housing and health care prices, while ensuring access to higher levels of care, many older adults are starting to consider senior living, specifically Life Plan Communities, for the active lifestyle they offer and as a practical plan for the future. 

The Silver Tsunami Doesn’t Affect Everyone Equally

The reality is not all the four areas that were first predicted to be affected have or will impact everyone the same. However, if you’re a baby boomer living off your retirement savings, the demand for, and constantly rising cost of, senior health care could have the biggest impact on your future.  

The U.S. Department of Health and Human Services reports that about 70% of seniors 65+ will need some type of long-term care for an average of three years. According to the 2023 Genworth Cost of Care Survey, assisted living in the Leesburg area has an average monthly cost of $3,823 and a private room in a skilled nursing community averages $10,372/month.  

Older people also tend to spend more on prescription drugs and other health care. In fact, a Peterson-KFF analysis of U.S. government data found that in 2019, older adults 65 and over accounted for 35% of health care spending while representing just 17% of the population. With numbers like these, it’s easy to see why the Fidelity Retiree Health Care Cost Estimate predicts a single person who was aged 65 in 2023 may need approximately $157,500 saved (after taxes) to cover their retirement health care expenses and an average retired couple could need approximately $315,000. 

Surf the Wave with Life Care

With so many senior living community options available, which one is right for you? Choosing a Life Plan Community with Life Care – like Lake Port Square – now can help you save big on future health care costs. Plus, we offer an engaging, wellness focused, maintenance-free lifestyle to ensure you’re able to enjoy life your way and on your terms.  

Should the unthinkable happen and you need senior care, as a Life Plan Community, we offer on-site care including assisted living, skilled nursing and rehabilitation. If you choose our Life Care contract option, your monthly fee will remain about the same for any care you need, providing increased peace of mind and greater financial security. 

Turn the Silver Tsunami into a Ripple 

With the right plan in place, you’ll be ready for whatever the coming years bring. To learn more about the social and financial benefits of Lake Port Square, schedule your personal visit by using our Community Assistant chat feature or contacting us here.