The charts below are based on 2011 Census data and show some of the key demographic trends that are driving demand in the retirement housing market.
The existing retirement market is heavily dependent on ‘needs’ based movers and the living arrangements of older age groups highlight this. The first chart shows the large proportion of older age groups that are widowed with a particular bias to women aged 75 and over given their longer life expectancy.
The health of people by age, along with their ability to do day-to-day activities, also highlights the difficulties faced by large proportions of people in older age. 19% of people aged 75 and over are in bad health and another 48% find their ability to perform daily activities limited.
As such it is not surprising to see the generation below those struggling with health are providing large amounts of unpaid care. Over two million (26%) people aged 50 to 64 provide unpaid care every week and large numbers are continuing to do so in retirement.
As life expectancy continues to rise (the average 65 year old can expect to live another 20 years), there will be growing pressure on those approaching or just entered retirement to meet the care needs of their parents.
We expect to see growing numbers of this generation release the equity held in their homes as they are expected to meet the care needs of their parents and assist their children in getting on the property ladder alongside meeting their own pension requirements.
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