The layering effect: putting the Baby Boomers into proper perspective shows an evolving impact on senior living.

There is a widely held theory that in the next five to seven years our industry will be serving two generations: today's age and income qualified seniors and the aging Baby Boomers That's not quite true For the past 15 years our industry has actually been dealing with three generation: today's potential resident involving seniors starting at about age 78, the decision-influencer consumers born during the Depression era and the older Baby Boomers as influencers. Figure 1 compares the three generations showing the correlation between their major life's birth marks and their chronological age.

Many companies have been chasing the heavily hyped Baby Boom potential for almost 60 years Most have adapted their products and services to respond to changing customer demographics and psychographics. But unlike most businesses, the senior living and health care industries face some very unique challenges Our physical products and demographic targets have remained relatively constant, but the Boomers are changing the psychographics of our market even before they themselves become senior living prospects.

Let's first put the highly publicized Baby Boomer generation into proper perspective. With the possible exception of amenity rich active adult communities, today's boomer is not a likely candidate for a senior living community. It will be 2021 before the first Boomers will be 78--the leading edge of our age-qualified spectrum for today's independent and assisted living.

In 2004 the oldest Boomers, those born in 1946, will be only 58. While not demanding senior housing products themselves, these Boomers not only influence their parent's senior living decisions today; they are frequently the decision makers. The real issue today (and for the next 10 to 15 years) s how the Boomers' mindset might strongly influence their parent's senior living decisions. Will some of their preferences and biases make or break the r parent's critical decision to move rite your senior living community? The mindset of today's Boomer is influenced by life's major birth marks Their reaction to our senior living offerings is a combination of their own attitudes, opinions and biases as well as those of their parents--as they choose to interpret them. Let's look at just five areas showing how today's Boomers might be impacting your senior living community.

1 Financial Considerations--Today's 78-year-old senior and their adult children are more concerned than ever about out living their assets. Not since the Great Depression have seniors experienced the kind of financial uncertainty that has existed over the last three years. Investment portfolios have been hammered and interest rates on their savings accounts are at their lowest levels in over 40 years. Many Boomers have mixed emotions when assisting n their parent's senior living decisions process. Will their senior living decisions support the modest spending down of some of their inheritance or be heavily focused on optimizing the estate proceeds?

2 Rejection of the Status Quo--Women comprise roughly 75 percent to 80 percent of the residents in senior living health care. The daughter plays the predominate role as a decision influencer. In past generations, the female was primarily a homemaker and more readily accepted a senior living community's definition of the "status quo." But the life experiences of today's evolving generation has taught them to be more outspoken, independent thinkers. Today's seniors and their Baby Boomer children are more worldly; and they are raising significant and valid ques0ons about a community's specific approach to individualism, life satisfaction and overall quality of life

3 Life Satisfaction and Individual Self-fulfillment--The three dynamics of a Baby Boomer playing the complex role of a decision influencer for their parents are love, guilt and economic concern. The love and guilt dynamics can be effectively addressed by clearly demonstrating that you have a community of choice that emphasizes and delivers life satin faction and individual self fulfillment through innovative programmatic activities and operating philosophies.

4 High Technology Focus--Many Baby Boomers are quite comfortable with high technology So they may be more inclined [o encourage their patents to live in a senior living community that has creatively applied high technology n the form of computer applications; e-mail, Interact access and even audio/video communication with their loved ones. They might also expect to see high technology approaches applied to operations and interactive communication with them. They also respond very well to financial planning spread sheets. Progressive communities should respond to this baby boomer mindset by making practical use of today's technologies from a high tech/high touch perspective.

5 Premium Price vs. Perceived Value--Many Baby Boomers buy BMWs and Mercedes rather than Fords or Chevrolets. They have clearly demonstrated the willingness and ability to pay premium prices for a basic utility. They're responding to their definition of perceived value. If the affordability potential is there, it is possible to help them to convince their parents to pay premium prices for a quality senior living community of choice rather than opting for a look-a-like commodity.

The senior living industry has generally experienced good performance during the past 10 years. But don't simply assume conventional marketplace acceptance into t he future We've got a lot to learn about future generations. Now we must prepare for the evolving impacts of the Boomer generation.

Jim Moore is president of Moore Diversified Services, a Forth Worth, Texas-based national seniors housing and health care consulting firm. He is author of Assisted Living 2000 and most recently, Assisted Living Strategies for Changing Markets. He may be contacted at [e-mail].

                             FIGURE 1
              SENIOR LIVING SUCCESS IS INFLUENCED BY
                     GENERATIONAL BIRTH MAP.KS

                                                 Today's
                                                 78-Year-Old
                                                 Senior

I. Year Born                                     1925

II. Generational Birthmark        Time Frame     Age at Generational
                                                      Birthmark

-- Great Depression               1929-1935      4-10 yrs
-- World War II                   1940-1945      15-20
-- The "Gray Flannel Suit Era"    1946-1960      21-35
-- Vietnam Era                    1960-1974      35-49
-- The Rebellions of the 1960's   1960-1970      35-45
-- Woodstock                      1969           44
-- Economic Boom                  1990-1999      65-74
-- High Tech Bubble               1999-2002      74-77
   Burst/Economic Recession

   Low Savings Rates/             2001-2004      76-79
   Lost Investments

III. Today's Age Timeline

   2004                                          79
   2010                                          85
   2021                                          96

                                  Depression     Oldest
                                  Era            Baby Boomer
                                  Children       Will Be 59
                                                 in 2005

I. Year Born                      1932           1946

II. Generational Birthmark        Age at Generational Birthmark

-- Great Depression               0-3 yrs        ---
-- World War II                   8-13           ---
-- The "Gray Flannel Suit Era"    14-28          0-14 yrs
-- Vietnam Era                    28-42          14-28
-- The Rebellions of the 1960's   28-38          14-24
-- Woodstock                      37             23
-- Economic Boom                  58-67          44-53
-- High Tech Bubble               67-70          53-56
   Burst/Economic Recession

   Low Savings Rates/             69-72          55-58
   Lost Investments

III. Today's Age Timeline

   2004                           72             58
   2010                           78             64
   2021                           89             75