1. The Case for Age-Friendly Communities
Margaret B. Neal, Ph.D.
Grantmakers In Aging National Webinar
July 20, 2016

2. Background
Grantmakers in Aging contracted with PSU’s Institute on Aging to develop this case
Target audiences:
Government officials and staff
Business leaders, private sector investors
Philanthropists
Educators
Civic groups
Advocacy organizations
Service organizations and providers
Community residents
Age-Friendly Domains
Credit: Age-Friendly Portland
and Multnomah County Initiative

3. Method Reviewed academic and “gray” literature Consulted with experts
Drafted document
Received feedback from GIA, consultants, colleagues
Final formatting and release by GIA on March 7, 2016

4. Contents Executive Summary i-iii Setting the Stage 1
Our Populations are Aging
Older Adults are a Growing Resource 2
An “Age-Friendly” Community Can Benefit People of All Ages 3
Who Should Care and Why
 The Value Proposition of an Age-Friendly Community 4
Economic Benefits
Social Capital Benefits
Opportunities Related to Housing
Opportunities Related to Physical Infrastructure 20
Health Benefits
Other Benefits
 Conclusion
 Endnotes

5. Age-Friendly Communities Have Economic Benefits
Older adults are an important part of the workforce and expand the labor pool from which employers can hire.
Attracting and retaining older workers addresses labor shortages.
Older workers can enhance organizational productivity and business outcomes.
Attracting or retaining older adults in a community who might otherwise leave can be an important economic development strategy.
Older adults start more new businesses than younger adults.
Older adults have enormous economic clout as consumers.
The older adult market is stimulating new companies, products, services, and technologies.
Older adults bring tourism dollars.

6. Age-Friendly Communities Have Social and Health Benefits
Older adults provide care and resources across generations.
Older adults serve the community through volunteering and civic engagement.
Age-friendly communities reduce barriers to volunteering.
Older adults make philanthropic investments and charitable contributions.
Age-friendly environments reduce social isolation and improve health and community engagement, resulting in lower public and personal costs related to illness and health care.
Older adults make significant contributions to the social, political, and environmental fabric of society.

7. Age-Friendly Communities Facilitate Volunteering by Older Adults, Contributing to Economic Development and to Individual Health
Older adults volunteered nearly 2 billion hours of service valued at $45.7 billion (Corporation for National and Community Service, 2014)
23.6% of people aged 65+ volunteered (BLS, 2015) 
Benefits non-profits and the community but also older adults themselves:
a sense of purpose and accomplishment
increased life satisfaction
better physical, mental, and cognitive health
(Grimm et al. 2007; MetLife/Civic Ventures, 2011)

8. Age-Friendly Communities Help Retain Older Adults, Who Make Charitable Contributions
¾ of mid-life and older adults engage in charitable giving (AARP, 2013)
Bequests produced over $28.13 billion in charitable contributions in the U.S.
This is nearly 60% more than all gifts from businesses and corporations (Giving USA Foundation, 2015)
2013
2015

9. Age-Friendly Communities Facilitate Caregiving by Older Adults, which Contributes to the Economy
Older adults provide unpaid care for adult children, grandchildren, spouses, and other relatives.
AARP (2015) estimated that:
40 million family caregivers provide 37 billion hours of care annually, at an average of 18 hours per week
Value estimated at $470 billion
More than annual national Medicaid expenditures ($469 billion)
More than the combined annual sales for Apple, IBM, Hewlett, and Microsoft ($467 billion)
Image:

10. Age-Friendly Communities Attract and Retain Older Adults, With Not Only Economic but Social, Political, and Environmental Benefits
Older adults interact with neighbors more than any other age group (Joint Center for Housing Studies of Harvard University, 2004)
Older adults “care for place” by volunteering, advocacy, giving advice and support, and effecting change (Wiles & Jayasinha, )   

11. “What we do now to make our communities good places to grow up and grow old
will yield returns not only for today’s elders
but also tomorrow’s – that is, for all of us.” – p. 30
See the full report and executive summary:
Margaret B. Neal,

12. The Economic Case for Age-Friendly Communities
Cathy Boyer-Shesol, MPA Mid-America Regional Council
GIA Webinar Wednesday, July 20, 2016

13. Mid-America Regional Council
Association of city and county governments.
Board of 33 locally elected officials.
Founded in 1972.
Roles: leadership, planning, action.
Program areas:
Transportation Planning (MPO)
Emergency Services and 9-1-1
Environmental Planning
Local Government Services
Research, Maps and Data
Aging and Head Start
KANSAS CITY REGION
9 COUNTIES • 119 CITIES
2 MILLION PEOPLE
4,400 SQUARE MILES

14. Economic Impact of an Aging Population

15. Analysis Covers… Demographic Shift Workforce Employment Earnings
Spending
Education
Migration Patterns

16. Older households spend about as much as younger households, on average.
Though senior wages may lag, their expenditures are still roughly equal to those of younger households due to spending out of retirement savings and income from social security. In the U.S., households with heads aged 75 years an older spend $34,400 annually, or about 13 percent more than those headed by individuals under the age of 25. Households headed by individuals 65 to74 years of age spend $46,800 per year, or about 3 percent less than the average household headed by individuals between 25 and 34 years of age.
Based on national data

17. The case for retaining the Kansas City region’s 65+ population.
And…
The case for retaining the Kansas City region’s 65+ population.

18. Estimating economic impact: assumptions and methodology

19. Retaining more seniors produces a cumulative effect on the region’s economy, resulting in nearly 7,000 more people and 2,600 more jobs if continued for 10 years.

20. More people and jobs in the region would raise annual incomes by nearly half a billion dollars, and the value of goods and services produced locally by nearly one-quarter billion dollars.
Income rises faster than output because seniors bring with them retirement income for which they don’t have to work at local firms to enjoy. In addition, some of their income is spent on goods and services not produced locally.

21. Conclusion Seniors are an increasing share of the economy.
This is the result of both growing numbers and improving spending power.
Retaining seniors who might otherwise leave can be an important part of an overall economic development strategy.
Strategies that make the region more attractive to seniors could add thousands of jobs and millions of dollars to the region’s economy, over time.
We are increasingly a community OF all ages, so we need to invest to become a community FOR all ages.

22. KC Communities for All Ages
Contact Information
Cathy Boyer-Shesol
Project Manager
KC Communities for All Ages

23. Economics of Longevity:
Changing just about everything in Atlanta and across the globe

24. 1 NEW ECONOMIC STRENGTH Billion in 65+ Wages
In 2013 Q1, those aged 65+ held 3.7% of the jobs in the 10-county ARC area
The average monthly wage is $1,208 for those 65+, which does lag the overall average monthly wage for all others (18-64) in the workforce at $1,400
…For some higher-paying industries, e.g. Professional Services, Mgmt. of Companies, average wages for 65+ are higher
Billion in 65+ Wages

25. 1990 Atlanta Labor Force
Source: ARC Plan 2040 Transportation Update (2014) (20- County Area)

26. 2013 Atlanta Labor Force
Source: ARC Plan 2040 Transportation Update (2014) (20- County Area)

27. 2040 Atlanta Labor Force
Source: ARC Plan 2040 Transportation Update (2014) (20- County Area)

30. Regional Labor Force Participation Forecast
Labor Force Participation Rates – All Ages
Source: ARC The Region’s Plan Forecast (2015) Series 15 DRAFT

31. $40Billion $7.8Billion What if more retirees move to Metro Atlanta???
Personal Income
$7.8Billion
In Additional GDP
Source: REMI

32. More in Personal Income
What if more working age(18-64) people move to Metro Atlanta?
$4Billion
More in Personal Income
$2.6Billion
In Additional GDP
Source: REMI (ARC Analysis)

34. Capture and Reinvest Investment Funds Savings are invested
Evidence-Based Practice Creates Value
Savings are invested
Savings are returned to investor
Savings are Defined and Captured

36. Aging Population Solves Community Challenges
Value Proposition:
Aging Population Solves Community Challenges
Aging in Community = Diversified Tax Base
Transportation options = Lower transit costs
Diverse Age Structure = Maximized Infrastructure

37. Kathryn Lawler
Atlanta Regional Commission