A primary driver in the growth of costs is the aging of the baby-boomer population. The baby-boomer effect will be seen essentially as a bulge in cost increases that will move towards the older age groups, reaching the 65-89 age group over the next two decades, followed by a subsequent spike in costs for the 90+ age group as the baby boomers begin to reach this age after 20 years.
This bulge will result in shifts in the peak costs, which will increase from $3.3 billion at age 85 in the current year to $11.2 billion at age 87 in 2050. The costs by age group show that by 2032, costs in the 65-89 year age group will grow by 111%, from $64.9 billion to $137 billion. Costs for the 90+ age group will increase by 85%, from $17 billion to $32 billion. However, in the period from 2032 to 2050, costs for the 80-89 age group will increase only by 34% to reach $188 billion, while costs for the 90+ age group will almost triple to $83 billion. All told, the costs for the 90+ age group are projected to increase nearly 5-fold by the year 2050. Costs among younger age groups will increase by smaller but still substantial amounts, with costs nearly doubling by 2050.