This is part of a series of blogs spotlighting the ALICE population and how our community can make a difference.
Two major population bubbles are changing communities across Michigan. The largest is the baby boomers, born between 1946 and 1964.
By the time COVID-19 struck, an estimated 10,000 baby boomers in the United States were retiring every day. Since then, that trend has accelerated; according to the Pew Research Center, about 1.1 million more baby boomers were forced to retire due to the economic effects of the pandemic. In the third quarter of this year alone, 28.6 million people retired.
When it comes to ALICE, the increase in ALICE households in Michigan is driven significantly (though not exclusively) by seniors age 65 years and older. The number of senior households increased 20%, from 870,656 in 2010 to 1,045,272 in 2017, according to the Michigan ALICE Report.
The number of senior households with income below the ALICE threshold grew by 17% during that period. By 2017, 41% of senior households had income below the ALICE threshold. The next oldest age group, the so-called Generation X (45-64 years of age), remained flat between 2010 and 2017, yet the number of these households below the ALICE threshold grew 6%. That’s a big drop in income for a group that should be in its prime earning years.
The future for Michigan’s population involves getting older. The state’s elderly population is projected to grow from 1,361,530 (14%) in 2010 to 2,233,648 (23%) by 2040, while younger demographics will shrink. The aging population will increase demand for geriatric health services, including caregiving, assisted living facilities, nursing homes and home health care. The problem is that these needs will clash with a projected shortage of paid (often ALICE themselves) and unpaid caregivers, lack of training among caregivers, and the financial and emotional burden of caregiving on family members.
Please support our programs that help ALICE achieve financial stability.