[Senior Trend] Fierce Competition in the US Senior Industry⑤ University-Linked Retirement Villages

Iboram, CEO of Third Age

The great soul known as the Father of India, ‘Gandhi,’ said, “Life is always a process of learning something new.” The desire to learn is one of human nature’s inherent traits. Therefore, continuous learning and self-development activities are natural throughout the life cycle. In the United States, University Based Retirement Communities (UBRCs) are thriving. In an aging society, seniors can gain lifelong education and a rich community for a vibrant third act of life, while universities can attract new students. In South Korea, where discussions about the rapid decline in school-age population and regional extinction issues are ongoing, more people are seeking alternatives through UBRCs.

Currently, the baby boomer generation in the U.S. has higher educational levels and more time and financial resources compared to previous senior generations. They want to satisfy their intellectual curiosity even after retirement. Universities began by opening campus library facilities or offering lifelong education programs for seniors, then progressed to installing senior-only housing on campus grounds or allowing residents of nearby senior towns to use school cafeterias. Generally, UBRCs focus on educational programs, but their forms vary from universities merely lending their names to directly developing, constructing, and operating the communities. Representative UBRC examples in the U.S. include Stanford University’s ‘Classic Residence’ and the University of Florida’s ‘Oak Hammock.’

Typically, universities act as the business entity directly operating retirement communities and programs. However, advanced senior living services related to medical care, safety, and health that did not previously exist are operated separately through nonprofit organizations (NPOs) affiliated with the university foundation. This not only helps cover necessary school expenses through profits but also provides positive effects such as offering volunteer work and part-time jobs within community facilities to students. Retired seniors do not just attend classes or use campus facilities; they can also mentor or engage in intergenerational exchanges based on their experience and wisdom. About 100 universities in the U.S. have established and operate UBRCs.

According to the American Association of Retired Persons (AARP), seniors’ satisfaction with UBRCs is very high. Baby boomer seniors prefer having a purpose in life and trying new things rather than leisurely playing golf. They especially do not want to stop learning and intentionally seek ways to contribute to society in some form. Connecting with universities expands their options. UBRC residents audit general classes of interest when seats are available, in addition to lifelong education courses. They can easily access music performances, theater productions, and sports events on campus, and if their pre-retirement professional fields align, they can even participate in research projects. Occasionally, senior residents offer free lectures to students based on their previous careers.

A well-known university-affiliated retirement facility is Mirabella ASU, constructed and operated by the nonprofit developer Pacific Retirement Services. In fact, all projects Mirabella has undertaken sold out even before completion, and many existing university-related retirement communities have waiting lists. Recent projects are scheduled to open in multiple locations, including Georgia in 2020, Florida in 2021, and New York and Texas in the fall of 2023.

UBRCs are also beneficial to universities. According to the National Student Clearinghouse Research Center, traditional-age student enrollment in the U.S. has decreased by 4 million over the past decade. Since most universities have operated primarily on tuition revenue, diversifying income sources has become essential. Fortunately, the population aged 65 and older is rapidly increasing and enjoys being connected to universities. Of course, UBRCs are not a panacea. There are occasional conflicts between residents dissatisfied with meals provided by some university UBRCs and bureaucratic university and housing business corporations.

In South Korea, some institutions have expressed ambitions to lead K-UBRCs. The core is not just space or facilities but differentiated educational systems and philosophies and operations that allow studying and interacting with young people. We look forward to many good examples emerging in Korea as well.

Lee Boram, CEO of Third Age