We were recently visiting friends down south. They live in a beautiful community that has a Homeowners Association (HOA). Their neighbor had something odd in their yard, a batting cage. Our friends called the manager that runs the HOA to inquire about this.
All they were doing was inquiring.
The manager indicated that, as they were merely inquiring and not complaining he had no responsibility to get back to them. Fair enough.
The manager visited their neighbor, and he instructed them to remove this from their property as soon as possible as it was a clear violation of the HOA regulations.
The next day, the wife leaned over the fence and said to our friends:
“Freaking Old People!”
This is of course, a family newsletter so we have naturally edited her lovely neighborly comment. To say our friends were stunned is quite an understatement. Then it dawned on me:
Wait, I am older than our friends.
That must make me something more than a Freaking Old Person (FOP). A Really Freaking Old Person. Dang.
Interesting enough, it was the wife’s father that had purchased this expensive item in their backyard for his grandson. I have never met this grandfather. I am assuming that as a grandfather he may be ‘old.’ For some reason however, I suspect he is not likely a FOP. Just an OP?
A Growing Market
The market of FOP’s is growing. Every day in the U.S. 11,400 people turn age 65. 1)
Every Freaking Day!
You may even know some of them. Maybe you are related to some of them, like perhaps your parents or grandparents. Heck, you might even be in the club yourself!
The FOP club is not a small club. There were over 61.2 million folks age 65 or older in 2024. This is about 18% of the population. 2)
Additionally, this club is not getting any smaller. By 2030, there will be 71.6 million Average Joe’s age 65 or older. This will be 20.7% of the population. 3)
However, members of this club are not sitting around and looking for 6 Black Swans Easy to See. They are active and on the go. They understand Everyone Knows You Need to Diet and Exercise.
The Great Resignation
The recession in the Spring of 2022, caused by the Covid-19 pandemic, had significant side effects. One of these was the so-called Great Resignation. This was where relatively younger folks (think mid 50’s or younger here) resigned and said:
“I’m out of here.”
Moreover, not all of them went to work anywhere else. Yikes!
Retiring in your mid 50’s is, well, how do you say this…an incredibly early retirement? Heck in your mid 50’s I would not consider you an FOP. Although now that I think about it, I have never received the technical definition of a FOP.
There were many that voluntarily resigned. There were 47.8 million resignations in 2021and 50.5 million in 2022. 4)
I suspect that these folks did not have a retirement plan in place to retire that early. They just decided they were done with working. If they can make a go of it without working, it is good for them. It would appear, however, to be more than an uphill battel.
Or, as Bob Seger sang, “Against the Wind.”
Retiring in your mid 50’s could easily mean you will be retired for 30 years…or more.
That is a long time.
Timing Issues
If your previous expected retirement was age 65, punching out at 55 is 10 years ahead of schedule, which causes 3 issues.
First, it is also 10 years of paying for health insurance before becoming Medicare eligible, which can be expensive.
Second, that is 10 years of not saving for retirement, which hurts.
Third and most importantly, that is 10 years earlier of accessing what you had saved for retirement:
Which really hurts.
This observation of the U.S. population getting older is not new. Ken Dychtwald, MD authored the book Age Wave way back in 1990. This was an insightful book about the impact and consequences of the aging baby-boomer population.
Additionally, the Massachusetts Institute of Technology has the MIT AgeLab. Joseph F. Coughlin, PhD, runs this organization. Their organization conducts research on global demographic change. Dr. Coughlin’s most recent books are The Longevity Economy and Longevity Hubs.
Investment Considerations
When you think of FOP’s what is the first industry you think of?
If you say health care, give yourself a gold star.
The health care sector represented 13.2% of the Standard and Poor’s (S&P) 500 Index as of June 30, 2025. However, health care represented 18.5% of the Gross Domestic Product (GDP) as of June 30, 2025. 5) 6)
Contrast the health care sector with the technology sector. The technology sector represents 33% of the S&P 500 Index as of June 30, 2025. However, it accounts for 9.3% of the GDP.
It is easy to get caught up with the technology sector. Heck, the NASDAQ Index is a proxy for the technology sector. Technology companies comprise over 55% of the Index.
All kinds of nice, bright, and shiny objects pop up in the technology sector constantly. The most recent and striking example is Artificial Intelligence (AI). The hype surrounding AI is staggering.
OpenAI, the owner of ChatGPT, is the leader of the pack. OpenAI is not a publicly traded stock, therefore you cannot invest in it. The largest investors in OpenAI are Softbank Group $40 billion and Microsoft $10 billion.
Lessons Learned
• Do not get old. Good luck with that.
• Do not live in a HOA. OK, if you do, make sure you get an end unit. Then you only have one formidable young neighbor to deal with.
• Do not talk to your neighbors over the fence. Just kidding. Sort of.
• Do not inquire about anything. Nothing!
• Based on the expanding supply of FOP’s consider the demand of services they will require. The healthcare sector is exhibit A.
Conclusion
If you need help with Why Getting Old is the New Normal, give Thomas Scanlon, CFP®, CPA a call at (860) 645-1515 or E-Mail Thomas.scanlon@raymondjames.com.
This is original content created by Manchester, Connecticut Financial Advisor, Thomas F. Scanlon, CFP®, CPA.
1)bankerslife.com – February 26, 2025
2)census.gov/newsroom/press-releases – June 26, 2025
3) spglobal.com/market-intelligence – November 14, 2024
4) cnbc.com – February 1, 2023
5) spglobal.com – July 31, 2025
6) healthaffairs.org – July 2025
The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that is accurate or complete, it is not a statement of all available data necessary for making an investment decision, it does not constitute a recommendation. Any opinions are those of Thomas F. Scanlon and not necessarily Raymond James.
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