Baby Boomers just began entering the over 65 age group in 2011. Although old age benefits payments begin at age 65, boomers told a Pew Research survey they felt old age begins at 72 and reported individually that they “felt” 9 years younger than their chronological age.  Pew maintains an extensive database of surveys regarding ageing with a nice summary in their 2009 report: Growing Old in America: Expectations vs. Reality.

Senior citizens are supported by the Social Security, and Medicare systems providing income and single payer healthcare for 40 million Americans over age 65 (13% of the population) and 5 million younger Americans qualified by disability.

The number of seniors over 65 is forecast to grow to 88 million in 2050 which would be 19% of the population. Average Medicare benefits of about $12,000 per year have been growing slower than all medical costs but have still grown more than 5% per year since 1990. Growth in Medicare forecasts is expected to be 3% per year through 2020. If the forecasts are correct the Medicare trust fund will be exhausted in 2024. Social Security is forecast to grow as well, exhausting its trust fund in 2034.

Management of the $1T per year in taxes (15% payroll tax) and spending as well as the $4T trust fund designated for senior care is a source of continuing debate and a political third rail. Enhanced longevity and an elder care bubble due to the “Baby Boomers” are stressing the system. Boomers have been paying into the system for their entire lives and expect something back.