Hawai?i is confronting a growing concern as its population of seniors aged 75 and older increases, drawing more resources than they contribute. This pressing issue is highlighted in a newly released report that poses a significant question for state officials: how to cater to the demands of a demographic known as the super-aged. According to Andrew Mason, a professor emeritus at the University of Hawai?i and the author of the report funded by the Department of Business Economic Development and Tourism, the needs at this stage in life are substantial, encompassing financial requirements, healthcare, caregiving, and more.
Mason points out that by 2035, one in every four residents in Hawai?i will be over the age of 65, resulting in a super-aged population of approximately 219,000 individuals. The report, titled “Aging and Hawai?i’s Generational Economy,” analyzes the consumption of resources by different age groups and compares it to the amount they produce through labor. This discrepancy highlights areas where resources are insufficient.
Advocates are calling attention to the urgency of these findings. Keali’i Lopez, the state director of AARP Hawai?i, emphasizes the importance of the report for policymakers. The data indicates that by age 80, individuals consume $52,000 more annually than they produce. This contrasts with individuals at age 48, who generate a lifecycle surplus by earning $35,000 more than they consume. The increased consumption by the elderly involves utilizing healthcare services, federal benefits, and personal assets.
Mason emphasizes the multifaceted nature of this challenge, underscoring the importance of addressing both the elderly’s needs and those of children, who also consume more than they produce, primarily due to educational and familial needs. Balancing the demands of all generations is pivotal to ensuring seniors’ needs are met while providing children with the resources required to thrive as they grow.
The report’s analysis, based on 2022 data, reveals substantial changes since the prior assessment in 2012. The initial findings suggested a more optimistic outlook, with potential economic growth and generational fairness. However, the COVID-19 pandemic severely impacted this trajectory, causing widespread unemployment, recession, and resource reductions. Consequently, living standards did not improve as anticipated, and some even declined.
The report highlights the necessity for young people to be employable and productive to support seniors in their later years. The pandemic’s effects on education have been profound, raising concerns about future impacts on societal productivity.
According to Lopez, addressing the current trends demands more affordable housing, which she considers paramount in retaining families within Hawai?i. Policies like paid family leave could provide essential support for family caregivers, enabling them to care for older family members effectively. AARP research indicates that approximately 150,000 family caregivers in Hawai?i provide substantial unpaid care to loved ones.
Lopez expresses concern that if young residents continue to leave Hawai?i, there will be fewer individuals to sustain the growing senior population. Initiatives to support family caregivers, such as unpaid caregiver tax credits, are crucial to maintaining the social fabric that values the care of elders. She highlights Hawai?i’s cultural emphasis on elder care, viewing it as a privilege and social duty.
The University of Hawai?i Economic Research Organization’s report suggests contemplating tax policy changes, improved education, and retirement savings strategies while considering federal policy shifts related to Medicare and Social Security. These measures aim to address the anticipated costs of supporting a super-aged population.
Despite the challenges outlined in the report, there is optimism as Hawai?i continues to honor its elders and works to strengthen support for all age groups. The political and social will exist to confront these challenges. As noted by Colin Moore, a political scientist, affordable housing is at the forefront of this effort, marking it as a critical component in tackling the issues highlighted in the report.
While regulatory and community resistance present obstacles, the focus remains on ensuring that housing and other support systems are prioritized at the state level. The unified cultural and political commitment to addressing these significant concerns demonstrates hope for a sustainable future for Hawai?i’s aging population.
