Project 2030 Update The Aging of Minnesota’s Population Implications for Action October 2002

Project 2030 Update Presentation l Demographic realities l Implications l Action needed to meet challenges

Minnesota’s Population by Age Group Percent Change:

Minnesotans 65+ will more than double between 2000 and 2050, rising to 1.6 million.

Minnesotans 65+ remain in the labor force at higher than expected rates. Source: 2000 projections and 2000 Census

The Good News l 1.3 million Minnesotans 65+ by l Nearly 25% of the population. l Largest untapped human resource in the state. l Individuals are continuing to work in “retirement.” l Vital Aging will be in vogue.

Minnesotans age 85+ will more than triple in the next 50 years.

The number of Minnesotans 65+ living alone with more than double between 2000 and 2030.

Families provide 95% of all care needed by older persons. One-third of boomers will not have children available. Who provides care for frail older persons in 2000

Family support will be reduced by Friends, neighbors and voluntary agencies must assume bigger role. Who provides care for frail older persons in 2030?

Caregiver ratios are already high in many counties, and will grow higher. Caregiver Ratio = number 85+/number females (2000 Census)

The “Not So Good” News l 165,000 Minnesotans 85+ in l Increase to 315,000 by l A large number of these people will need long-term care. l Traditional sources of long-term care will be overwhelmed. l Families and workers will be in short supply.

U.S. Personal Savings Rate declines to record lows.

Percent of elderly* with sufficient income at normal retirement age to cover long-term care costs *Figures are for Kansas

The Bad News l 265,000 persons 65+ will be women living alone with few family and personal resources. l Two-thirds of these women will not have adequate income to pay for health and long-term care costs.

Project 2030 Update Implications l Smaller families will need help to care for older relatives. l Large numbers of older persons without families available will need assistance with long-term care. l Public sector will be overwhelmed. l Other sectors will increase their role.

Project 2030 Update 2030 Themes l Maximize people’s ability to meet their own needs and age in place. l Make all communities “age-friendly” through physical design, strong social connections and integrated services. l Make creative use of aging population and invest in young people.

Project 2030 Update What can we do as individuals? l Prepare for our own retirement and old age. l Meet our obligations as caregivers. l Support voluntary groups serving elderly (because public sector will be overwhelmed).

Project 2030 Update What can government do? l Federal programs are essential foundations for income and health care for the elderly. l Support informal networks of care and age-friendly communities. l Maintain safety net for those with inadequate personal resources.

Project 2030 Update What can employers do? l Promote flexibility in workplace to accommodate changing definitions of work and retirement. l Review benefits in light of aging work force. l Consider eldercare and employee-paid long-term care insurance.

Project 2030 Update What can voluntary agencies do? l They will be called upon to be “family substitute” for many elderly. l They are key to state’s leadership in social structures that work. l Role must increase if public sector reduces benefits and eligibility.

Outcomes in 2030 l Individual preparation l Supportive communities l Supportive employers l Partnerships