How intergenerational living reduces loneliness and enhances well-being in retirement

Intergenerational living is on the rise, and some say it could be the key to aging gracefully. According to census data, the number of people living with multiple generations quadrupled between 1971 and 2021, to 59.7 million. For many of them, the intergenerational arrangement saves money and improves their quality of life. Some experts also hope it will cure the loneliness that tends to plague older folks.

Why are intergenerational communities growing in prevalence? And what does that look like? Read on to find out more.

The trend toward intergenerational communities and other “alternative” living arrangements

If the idea of a retirement community, with its bingo nights and attached nursing wards, doesn’t appeal to you—you’re not alone. As millions of baby boomers reach retirement age (with Gen Xers not far behind), they seem intent on transforming the very concept.

Instead of age-specific residences like retirement or 55+ communities, there’s a trend towards intergenerational housing that brings together people of all ages. For example, Bridge Meadows, a multigenerational development in Portland, Oregon offers affordable housing to seniors, foster youth and their families. The community includes planned activities, shared meals, and common areas designed to bring residents together.

Mirabella at ASU is a unique type of senior living community. The 20-story luxury apartment tower sits on the Arizona State University campus in Tempe. All residents have student ID cards which they can use to audit classes and visit the university library. And home-sharing services in cities like New York and Boston match older adults with younger renters who are willing to share space and in some cases, provide household aid.

More communities are springing up around the world in all sorts of styles, all with the same goal: connecting generations and improving well-being.

Is intergenerational living a cure for loneliness?

Loneliness is linked to poorer health outcomes–it’s been compared to smoking 15 cigarettes a day, and is associated with increased risk of heart disease, stroke, anxiety, depression and dementia.

Research shows that loneliness and social isolation are more pronounced in older adulthood.

In an era of longer life spans and increased loneliness, some believe multigenerational communities could be the key to thriving as we age. Living alongside younger individuals benefits older adults both mentally and physically by:

  • Reducing feelings of loneliness and isolation
  • Improving mood and self-esteem
  • Encouraging more physical activity
  • Saving money by living with family or friends
  • Receiving help with chores and errands
  • Changing perceptions of young people
  • Making new friends and enjoying social activities
  • Staying engaged in society
  • Increasing security and affordability in living situations

Young people benefit from intergenerational settings, too. Research from Generations United found that kids involved in these programs develop better social skills, build confidence, and perform better in school.

Technology’s role in our longer, more independent lives

To succeed, intergenerational living communities need to be planned intentionally. That may mean creating enticing shared spaces, reserving some affordable apartments for seniors in mixed-age buildings, and planning ways for residents to interact.

Technology also plays a significant role in promoting independence for older adults. Here’s how:

Self-driving cars in planned communities

Imagine the peace of knowing you’ll never have to give up your car. Self-driving cars, while not yet mainstream, could be ideal for older drivers in planned communities. These systems are easier to implement in smaller, controlled areas, which would allow seniors to run errands or attend community events independently.

Embracing smart home technology

Smart home technologies are not just cool and convenient—they help aging adults live on their own for longer. Seniors can benefit from smart home technologies you may already use, like doorbell cameras and smart thermostats. But you can also consider:

  • Installing fall prevention measures like smart lighting
  • Using alert bracelets or smart watches to notify others of falls
  • Teaching older people how to use Alexa or Google Assistant to make emergency calls and connect to emergency contacts

Expansion of in-home medicine

Advances in in-home medical technology will give us more control over our own healthcare and wellness. With wearable sensors, patients can monitor vital signs, blood sugar levels, or changes to chronic medical issues themselves. If anything is off, the monitors will send that information directly to your doctor for changes or treatment.

Blue Cross Blue Shield says demand for telehealth services is up 300% compared to pre-COVID-19 levels. Health issuers are answering the call by providing virtual doctor’s visits and access to in-home testing options. Medicare or private insurance companies may cover some aspects of in-home care services such as:

  • Home health assistance
  • Durable medical equipment
  • Home health care that supports skilled nursing, PT or OT, and other services ordered by the doctor
  • Personal care that supports hygiene and daily living activities (bathing/showering, bathroom care, dressing, etc.)

Check with your policy, as coverage may require a physician’s certification that you are homebound, or other contingencies. You can also purchase a separate home care insurance policy or rider.

Rethinking retirement

In the name of healthy aging, baby boomers and Gen Xers are leading the charge for multigenerational living. This new view on retirement emphasizes fewer assisted living facilities and more mixed-age cohousing options.

In this vision, older adults combat loneliness and stay active, while younger generations gain wisdom and support. It’s a win-win.

Planning for the future

Doing it right takes planning, but the upside of intergenerational living—better health, affordability, and strong communities—makes it a trend to watch. As we’re expanding the view of what’s possible, we also need to prepare for the changes. For someone approaching retirement, that could mean:

  • Planning for longevity – Eat well, exercise, and get regular checkups.
  • Building a solid financial foundation – Is your investment portfolio designed for the long-term? Do you have a handle on your retirement income and expenses?
  • Having a plan for your ongoing health care needs – Do you need long-term care insurance? Does your insurance cover in-home caregivers and telehealth services?
  • Organizing estate plans – Make sure you have a last will and testament, powers of attorney, and trusts in place.

Embracing these steps can help pave the way for a fulfilling and connected retirement.

Benefit of working with us

From where you live to how you plan for it, you have options when it comes to your future. Working with us means you’ll have a dedicated partner who stays on top of the latest trends, technology, and alternatives to the status quo. We’ll take time to truly understand your personal financial situation, then help you explore all your options to find the right fit for you.

By solidifying your retirement income and financial foundation (including estate planning and insurance) you can rest assured you’re well-prepared for the years ahead. The path to a long, healthy, and financially secure life is yours—we’re just here to help guide the way.

Want to get ahead in the retirement planning game?  Download our midlife money checklist to make sure you’re ready, sooner rather than later.

Lisette Smith, CFP®, CDFA®

Lisette is a senior advisor to our personal wealth clients. She provides analysis and advice to help individuals and families make meaningful decisions in their lives, including investment, tax and estate planning issues. Lisette has been providing comprehensive financial planning and investment management to business owners and executives for most of her career. She also spent several years as a consultant to business partnerships and family-owned businesses, including conflict resolution, merger and succession planning.