A report exploring the potential fiscal and policy implications of California’s aging population has yielded some encouraging findings but also some concerning trends.

The Public Policy Institute of California recently issued a report and policy brief on the state’s aging population to help state leaders prepare for the critical challenges that lie ahead. The report, supported by the SCAN Foundation, showed that 22% of Californians will be aged 65 or more years by 2040, up from 14% in 2020.

Senior living experts in the state said the findings of the report came as no surprise, but they were encouraged to see a growing focus on issues affecting aging in California.

LeadingAge California said the report underscores the long-anticipated growth of California’s aging population.

“Our nonprofit provider members are well-prepared to serve the increasing number of older adults and understand their needs and preferences,” Meghan Rose, LeadingAge California’s general counsel and chief government affairs officer, told McKnight’s Senior Living. “However, the aging services sector requires the support of both the state of California and the federal government to ensure that our public systems and regulatory frameworks are flexible and innovative enough to accommodate this significant demographic shift.”

The report raises questions about how California will most effectively address some critical challenges,” California Assisted Living Association President and CEO Heather Harrison told McKnight’s Senior Living. She said the association will continue partnering with policymakers and leaders in the senior living space to work together to meet the needs of the aging population “with a focus on preserving independence and choice.”

Among the key findings of the report are that the older adult population will become increasingly diverse, “with no single racial or ethnic group constituting a majority.” Researchers also said a high proportion of Latino and Asian older adults will be foreign born, with about 75% speaking a language other than English at home.

“This increasing diversity will require culturally and linguistically appropriate services and a more diverse healthcare workforce,” the policy brief stated.

Rose noted that LeadingAge California’s flagship workforce development program — The Gateway-In Project — focuses on training and certifying culturally competent and linguistically diverse workers in the aging field.

“We are continuing to collaborate with state and federal partners to expand pathways for both domestic and foreign-born workers to enter this critical field,” Rose said. 

The growing aging population also will increase demand for long-term care, but many low- and middle-income Californians still find financing this level of care to be “a major challenge,” according to the report. 

The authors recommended that the state begin shifting its workforce and budget priorities to meet growing healthcare demands that an aging population will bring with it. With Medi-Cal already the primary payer for long-term care, the program will take on increasing importance in home- and community-based services as more and more older adults prefer to age in place or avoid institutional care.

Rose said that LeadingAge California already is seeing a change in consumer preferences away from institutional care toward HCBS.

“For decades, California’s low- and middle-income consumers have had limited options for aging at home or in settings like assisted living,” Rose said, adding that older adults should have options for aging in the setting of their choice. “Specifically, LeadingAge California is advocating for improved access to assisted living, memory care and behavioral health services for vulnerable older adults, as this is crucial for aging in place and access to long-term services and supports.”

The growing economic divide, according to the report, will leave “substantial numbers” of older adults living in or nearly poverty, and demand for services will grow dramatically due to the doubling of the 80-plus population.

“Ongoing research and policy development will play a crucial role in helping all Californians age with dignity, security and a good quality of life,” the authors wrote.