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My dearest friends dad is deaf. Not born deaf, but work related deafness. Yes in his work days as a builder no one wore protective head gear, ear plugs, sunscreen, safety glasses etc. As an Aging Baby boomer he now is legally deaf, has constant issues with Sun spots and moles, and eye issues stemming from damage caused whilst working. How much of his retirement is hindered by his generations work ethos? The Australian slogan comes to mind….You will be alright mate. My friends dad is not alright now. He cannot hear his own grandchildren laugh, or speak. He cannot drive most days, as his eyes do not adapt to easily to light (only between ten am and one pm, but not when it is raining or the sun is too bright). So where is his enjoyment of life at 68?

This is the first of two articles that explores the evolving demographic composition of our society while noting potential opportunities and pitfalls that could impact hearing health care professionals in meeting both the needs of our aging society and those within our profession.

For better or worse, Florida and other southern states to a smaller extent have acquired the reputation of being where the “snowbirds” flock to during various times of the year. This characterization implies these snowbirds are generally older in age and often settle permanently in these regions at some point. However, the magnitude of this exodus is somewhat overstated because this population is aging in place.

To further understand the impact of this “Age Boom,” one must understand the demographic mix that personifies our growing older population base. These age-based demographics generally are characterized in the following manner:

  • Traditionalists, born before 1945, prize loyalty and prefer a more formalized structure, including a traditional top-down hierarchical approach to most concepts.
  • Baby boomers, born between 1946 and 1964, are characterized by their optimism, idealism and often intense work ethic.
  • Generation X (Gen X), born between 1965 and 1980, often is characterized as more focused on “life balance,” with attitudes that are more centered on personal needs than structures, hierarchies or organizations.
  • Generation Y (Gen Y) or millenials, born between 1981 and 1999, are technically savvy and adaptive. While possessing some ideals similar to the boomers, many are early in their careers and periodically lack career direction or financial clout.
  • Post-millenials, born after 1999, generally are not a permanent part of the workforce at this time.

The baby boomers are one of the more intriguing age-based demographic groups. They have been the subject of considerable focus and interest for many reasons. They comprise the largest segment of the population, at approximately 80 million strong and nearly one-third of the entire population. Between 2004 and 2006, the increase in baby boomers age 55 and up increased over 10.5 percent, with almost 25 million being at least 55 and 5.2 million being over 65.

The boomers will comprise more than 19 percent of the workforce this year, a four-fold increase compared to the overall workforce growth rate. This group will grow to 31.4 million members by the year 2020 and further contribute to nearly 20 percent of our entire population being over the age of 65 at that time.

This aging of our workforce has created some significant dilemmas for how to manage an increasing number of older individuals actively participating in the workforce either by choice or necessity. The late Peter Drucker, a renowned management scientist and author, perhaps descried our evolving dilemma in the following manner: “In the developed countries the dominant factor in the next society will be something to which most people are only just beginning to pay attention: rapid growth in the older population and the rapid shrinking of the younger generation. Politicians everywhere still promise to save the existing pension system, but they and their constituents know perfectly well that in another 25 years people will have to keep working until their mid-70s, health permitting. What has not yet sunk in is that a growing number of older people – say those over 50 – will not keep on working as traditional full-time nine-to-five employees but will participate in the labor force in many new and different ways.”

Traditionally, a fair number of workers have chosen to retire at age 62 and “sacrifice” some of the long-term benefits of retiring later in order to begin collecting on those benefits and leave the workforce. However, the winds of change regarding our economic conditions have shifted dramatically, resulting in many more individuals deferring their formal retirement. Estimates predict nearly 70 percent of baby boomers plan to continue working in some capacity during the “traditional” retirement years, resulting in some instances of rather fierce competition for older workers and semi-retired baby boomers.

It is paramount for the hearing health care industry to recognize the impact that the changing attributes and expectations of this population will have on our professional services and products. Many of our past efforts focused on emphasizing the attributes of “hearing well” regarding the quality of life and balance in the golden years of retirement. However, we must shift our mindset to providing our services to assist boomers and even some traditionalists in their desire and often need to forestall or delay retirement. These expectations will rise as a result of educated and perceived needs to maintain employability along with a quality of life that parallels or exceeds that of their younger years.

Unlike prior generations, where individuals were often “lifers” in an organization or industry, baby boomers have had to react to a very fluid, evolving environment, often resulting in a desire or necessity to change jobs or careers. These boomers – through their perseverance and desire to work – are generally the most affluent of all our identified demographic groups. Despite some recent economic downturns, the following statistics generally characterize the ever-growing boomer group:

  • Men and women age 50 and over earn about $2 trillion in annual income, and their per capita discretionary spending is 2.5 times the average of younger households
  • Boomers control over $7 trillion in wealth, 70 percent of the total in the United States.
  • They own 77 percent of all financial assets, including 40 percent of all mutual funds ($1 trillion) and 60 percent of annuities. They represent 50 percent of IRA and Keough holders and 66 percent of stockholders
  • More than three-fourths (79 percent) of those age 50 and over own their own homes and possess 46 percent of all home equity loans.

However, boomers are also consumers of services and products. They transact more than 55 million auto loans each year and purchase 42 percent of all homeowner insurance policies. They own 38 percent of all life insurance policies and purchase more than 90 percent of all long-term care insurance policies, representing $800 million in annual premiums. They also comprise 35 percent of the automobile insurance market, represent 40 percent of credit card users, and purchase 41 percent of new cars and 48 percent of luxury cars.

Baby boomers exert a considerable amount of influence in health care, as well. Those age 50 and over represent more than $610 billion per year in direct health care spending. They account for 51 percent of all over-the-counter drug purchases and consume 74 percent of all prescription drugs, a $105 billion market.

In addition, they represent 65 percent of the occupied hospital bed days, 42 percent of physician office visits, 1.5 million of nursing homes residents, and 1.5 million of continuing care and assisted living residents.

The boomers comprise an approximately $6.25 billion in net worth, which is slightly above the $600 billion in net worth possessed by those age 65 and up. This figure dwarfs the mere $200 billion in net worth possessed by all demographic groups under age 45.

These statistics and attributes should serve as a wake-up call to where many of our efforts should be focused or referenced. Much of our efforts have focused on the “older traditionalists” in enhancing their quality of life beyond retirement. While this population does continue to grow, its ability to fund purchases of hearing aids privately often wanes somewhat as the perception that wearing a hearing aid “makes them old” persists.

While it is important to try to break down some of these barriers, a more targeted emphasis should be placed on the ever-growing baby boomer population. Many traditionalists remain steadfast in their beliefs that they are too “old” to change or sometimes do not want to change, even when the benefit far exceeds the obvious cost. The boomer population often is characterized as being more flexible and open-minded, more innovative, and desirous of enhancing their quality-of-life and maintaining professional activities and employment. Boomers want to maintain a certain standard of living and a balance in life.

The benefits of providing products and services that facilitate the ability of this population to obtain and maintain a high level of continuity and success in personal and professional activities cannot be understated. Additionally, hearing-related issues secondary to lifestyle choices – such as music, recreational and industrial noise – and the pharmacological and other therapeutic agents with a potentially deleterious impact on the hearing mechanism are growing exponentially.

Hearing health care professionals have an enormous opportunity to assist this population. Our recognition of these trends and the ability and desire to work with a growing patient base will determine whether the age boom will be a “big bang,” by moving forward in facilitating a desired personal and professional quality of life, or a “big bust,” by not defining, educating, and serving the needs of this productive segment of our society. Hearing health care professionals must work to maximize our efforts and remain viable and productive while strengthening our professional presence in the health care arena.

References

  • Cohen, J.D. (2006). The aging nursing workforce: How to retain experienced nurses. Journal of Healthcare Management, 51 (4): 233-45.
  • Dyvhtwald, K. (1996). Age Power: How the 21st Century Will Be Ruled by the New Old. New York: Penguin Putnam Inc.
  • Dychtwald, K., Erickson, T., Morrison, R. (2006). Workforce Crisis: How to Beat the Coming Shortage of Skills and Talents. Boston: Harvard Business School Press.
  • Haeberle, K., Herzberg, J., Hobbs, T. (2009). Leading the multigenerational work force. Healthcare Executive Journal, September/October, pp. 62-67
  • Littler Mendelson. (2004). Strategic Initiatives for the Changing Workforce. Littler Mendelson PC.
  • Society for Human Resources Management. (2004). Leadership Styles Series Part II: Leadership Styles: Generational Differences. Briefly Stated, pp. 1-7.

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