More Aging Baby Boomers Are Living Alone — How Do They Compare With Previous Generations?

Key Takeaways

• 26 million Americans over 50 live alone, concerns mount over how older baby boomers will manage their golden years.
• Excess retirements (retirements that weren’t expected) from folks living alone means that the labor force is short by about 2 million people.
• By 2030, all baby boomers will be over the age of 65, which means that we all have to prepare for their retirement.

Data has revealed that more and more aging baby boomers are living alone these days. It’s estimated that 26 million Americans over the age of 50 are living solo, making this the quickest-growing demographic in the U.S. These stats are worth considering because they will have an impact on the housing market, elder care, and government programs shortly.

The term “baby boomer” is often used to describe someone born between 1946 and 1964. This post-war era resulted in many soldiers who came home from the military, got married, and started families, resulting in about 76 million births during this 19-year span.

Thus, the baby boomer term was born. These folks would be around 58 to 76 today, with all baby boomers over 65 by 2030. At one point, the Census Bureau projected that the baby boomer population would reach 61.3 million by 2029 and that the number of elderly folks over 65 would be 20% of the population by that time.

We’re going to look at what it means to have more aging baby boomers living alone.

How many aging Boomers are living alone?

According to a recent article in the New York Times, more older Americans are living alone than ever before in history. In 2020, there were 15 million Americans over the age of 50 living alone. In 2022, that figure for this same demographic is almost at 26 million. The article also noted that what made living alone even more challenging for older baby boomers was that about one in six Americans over 55 didn’t have any children.

Stats on single-family homes

Here are some stats from the U.S. Census Bureau on living arrangements that are worth highlighting:

• In 2022, 29% of all American households contained just one person. This means that 37.9 million people are living alone in the U.S.
• The median age to marry in 2022 reached 30.1 for men and 28.2 for women. This is up from 23.7 and 20.5 in 1947.

With 29% of all households being single-person units and 26 million folks over 50 living alone, this trend is going to present some housing challenges as time goes on.

Is it a concern that older baby boomers are living alone?

Historically speaking, it hasn’t been rare to live alone as you get older as people lose a spouse or other family members, or they are already single and simply move into a senior care facility. Simply put, the percentage of folks who live alone increases with age.

On the surface, there’s nothing inherently wrong with older folks living alone. However, research over the years has shown that people who live alone as they get older will have worse physical and mental outcomes that result in shorter lifespans.

The impact of loneliness

The National Institute on Aging shared research findings a few years back that described how social isolation and loneliness came with higher risks for various physical and mental health issues. These issues include high blood pressure, heart diseases, a weaker immune system, obesity, anxiety, depression, Alzheimer’s, and death.

Based on the findings from a study published in the Journal of Perspectives on Psychological Science, loneliness can potentially be as deadly as tobacco smoke or obesity. Seniors who feel isolated may lead an unhealthy lifestyle, experience worsening existing conditions, and have their cognition affected.

At the time of the study in 2019, about 13.8 million people (or 28% of older adults) were living alone. The issue of loneliness is something that can’t be ignored. Even more interesting is that 90% of seniors interviewed about the topic stated that they would like to maintain their independence. As we can only imagine, our older loved ones don’t want to be a burden on us.

How about other generations?

People born between 1965 and 1980 are known as Gen X. Several folks in the Gen X solo living demographic were interviewed in the piece for the New York Times, where they mentioned that they had started to prepare by looking at options to live communally when they get older.

These living arrangements for the future are inspired by college and early-adulthood conditions. Others in Gen X stated that they don’t feel they could lean on the same support system that their parents had, which included long marriages and pensions.

It’s worth bringing up that baby boomers are the second-largest demographic, with a population of 70.23 million. As of 2021, millennials (those born between 1981 and 1996) are now the largest population group in the U.S., with a population of 72.19 million. While millennials have a long way to go before they start preparing for their older years, it’s going to be fascinating to explore how living arrangements evolve in the decades to come.

What’s the financial impact of Baby Boomers living alone?

Is there an economic significance to having more older baby boomers living alone? With so many older baby boomers living solo, this is going to have an impact on a variety of things as demographics and living situations change. We looked at the numerous ways that aging baby boomers living alone will change the landscape of the economy.

Government programs

Policymakers look at census population data to allocate funding for specific programs. It was recently announced that the Social Security cost-of-living adjustment will be 8.7% in 2023, which is the highest adjustment in 40 years.

The Census Bureau stats are also vital for analysts and community planners to see where older Americans live and what kind of services they need to designate for those communities. The lawmakers can also determine where to open up health services and senior citizen centers. The senior citizen centers and services include adult day care, home-delivered meals, and community center luncheons. Funding levels are decided by looking at the stats of seniors and seniors who live alone.

Housing issues

We’ve all read about the issues revolving around housing supply concerns. With baby boomers living in their family-size properties into their golden years, this means that younger folks have fewer options when it comes to spacious homes available for sale. These younger folks have to purchase smaller units or move into units further away from work.

The Labor Market

Fed Chair Jerome Powell recently stated that excess retirements (meaning more retirements than one would expect given the age of the population) from folks living alone have caused a labor shortage that’s contributing to the stubborn inflation numbers. Powell went on to say, “These excess retirements might now account for more than 2 million of the 3.5 million shortfall in the labor force.” It’s believed that there aren’t enough younger workers to replace those who have retired unexpectedly, so employers are offering higher wages in order to attract staff.

Financial savings: Living with family

As housing becomes increasingly unaffordable, younger generations are looking for ways to save money. With real estate prices skyrocketing over the pandemic, many baby boomers are sitting on properties that have gone up in value while living alone.

The obvious solution to aging boomers living alone would be for them to move into a condo or a smaller home. However, research from Freddie Mac indicates that entry-level home construction collapsed during the Great Recession, and it never returned to its former levels.

Due to zoning and construction issues, there’s a shortage of homes that are below 1,400 square feet. This shortage has forced smaller units to increase in price over the years. The research also shows that the percentage of entry-level homes in relation to overall home builds dropped from 40% in the early 1980s to about 7% in 2019.

So as the amount of single-person households increases, the supply of smaller homes has plummeted. This has resulted in challenges for baby boomers who were hoping to downsize. They are struggling to find a unit that makes sense for their needs.

How expensive are other options?

With many older baby boomers living alone, a big question remains — why haven’t they switched over to other living situations?

According to Genworth Financial, the median cost of assisted living facilities for seniors in 2021 was $4,500 per month across the country.

Here are some of the other median monthly costs of living arrangements for seniors

• Homemaker services: $4,957
• Home health aide: $5,148
• Nursing home private room: $7,908

As you can see from these figures, in many situations it may be financially beneficial for aging baby boomers to continue living alone in their homes. If someone has a paid off home or a small mortgage payment, they don’t have to stress about astronomical costs associated with trying to move into an assisted living facility. However, as more baby boomers continue staying in their homes, this will make it difficult for younger folks to purchase homes.

How should you be investing?

Many experts believe the resilient labor market kept the economy from officially entering a recession. With that said, the aging population and the number of folks living alone in their golden years will continue to impact the labor market, the housing market, and the government. This information makes it even more challenging to figure out how to invest your money.

If the labor shortage created by an aging population and rising inflation has you concerned about how to invest your money, then we suggest that you take a look at Q.ai’s Inflation Kit to protect your investments from dropping in value. Better still, you can activate Portfolio Protection at any time to protect your gains and reduce your losses, no matter what industries you invest in.

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Bottom Line

As our population ages, it’s clear that we’re going to have to replace workers who leave the workforce. With more older Americans living alone, this will impact the already struggling housing market. As the battle against soaring inflation wages on, we’ll continue to monitor the impact of seniors living alone.

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