13.1 Who are the elderly? aging in society  (Page 5/22)

The baby boom generation is the cohort driving much of the dramatic increase in the over-65 population. The figure below shows a comparison of the U.S. population by age and gender between 2000 and 2010. The biggest bulge in the pyramid (representing the largest population group) moves up the pyramid over the course of the decade; in 2000, the largest population group was age 35 to 55. In 2010, that group was age 45 to 65, meaning the oldest baby boomers are just reaching the age at which the U.S. Census considers them elderly. In 2020, we can predict, the baby boom bulge will continue to rise up the pyramid, making the largest U.S. population group between 65 and 85 years old.

This aging of the baby boom cohort has serious implications for our society. Health care is one of the areas most impacted by this trend. For years, hand-wringing has abounded about the additional burden the boomer cohort will place on Medicare, a government-funded program that provides health care services to people over 65. And indeed, the Congressional Budget Office’s 2008 long-term outlook report shows that Medicare spending is expected to increase from 3 percent of gross domestic product (GDP) in 2009 to 8 percent of GDP in 2030, and to 15 percent in 2080 (Congressional Budget Office 2008).

Certainly, as boomers age, they will put increasing burdens on the entire U.S. health care system. A study from 2008 indicates that medical schools are not producing enough medical professionals who specialize in treating geriatric patients (Gerontological Society of America 2008). However, other studies indicate that aging boomers will bring economic growth to the health care industries, particularly in areas like pharmaceutical manufacturing and home health care services (Bierman 2011). Further, some argue that many of our medical advances of the past few decades are a result of boomers’ health requirements. Unlike the elderly of previous generations, boomers do not expect that turning 65 means their active lives are over. They are not willing to abandon work or leisure activities, but they may need more medical support to keep living vigorous lives. This desire of a large group of over-65-year-olds wanting to continue with a high activity level is driving innovation in the medical industry (Shaw).

The economic impact of aging boomers is also an area of concern for many observers. Although the baby boom generation earned more than previous generations and enjoyed a higher standard of living, they also spent their money lavishly and did not adequately prepare for retirement. According to a 2008 report from the McKinsey Global Institute, approximately two-thirds of early boomer households have not accumulated enough savings to maintain their lifestyles. This will have a ripple effect on the economy as boomers work and spend less (Farrel et al. 2008).