Baby Boomers Changing the Face of Retirement
Baby Boomers, those born between 1946 and 1964, represent one-quarter of the U.S. population. Because of their numbers, Boomers have a huge influence on societal trends, and now that Boomers are starting to retire, they are changing how and where Americans are spending their post-career years.
Many Baby Boomers are expressing a greater desire to relocate for their retirement, unlike generations before them that wanted to stay in their current homes as they age. The later in the 20th century that a member of the population is born, the more likely they are to move their primary residence in retirement, includes a recent AARP study. Among younger Boomers, over 40% want to relocate in retirement, and half of those plan to move out of state. Unlike their parents and generations before them, Boomers are increasingly willing to relocate upon retirement, and their choices of locations are becoming more active, youthful, and far-removed from the stereotypical retirement spots, according to CNBC. In fact, retiring Boomers are moving back into cities in record numbers to take advantage of cheaper real estate prices, public transportation and abundant cultural options, observes real estate site Trulia.com.
Nonetheless, relocation has slowed, at least temporarily with the recession. Many retirees have put their relocation plans on hold until they can get the price they want. Many are investing in their desire retirement home at current rock bottom prices with plans to move once the real estate market improves.
Those who choose to relocate do so for several reasons. While in the past, a key motivation was to seek a warmer climate, the primary reasons now are to obtain greater access to health care and secure a lower cost of living including lower state taxes. That makes North and South Carolina the top two destinations, although traditional retirement locales like Florida and Arizona still figure on the top of the list. Another popular reason to relocate is to be nearer to family. According to a Boston Collage survey, 28% of older Americans who relocate after age 51 did so primarily to be near children r relatives, and more than half of those interviewed said they want to stay within three hours of family.
Baby boomers, more than 70 million strong, are credited with the current rise in the second home and relocation sector. Many of these boomers, possessing stronger financial security than any previous generation are buying or building second homes in the mountains of North Carolina.
While 55+ communities are still popular among retirees, almost 75% of Boomers say they want to move to an age-diverse community with residents of all ages. Many relocating buyers are looking for an easy-living lifestyle, with access to services that will free up their time from maintenance both inside and outside their homes, said the chairman of the National Association of Home Builders 50-Plus Housing Council. Interestingly, many floor plans for retirees are being modified to make room for a home office. Almost three-quarters of Boomers surveyed say that, even though they may be retiring and relocating to a new community, they intend to keep working for many more years.
The Boomer Market
- 76.4 million baby boomers
- Leading-edge boomers turn 62 in 2008
- Another baby boomer turns 60 every eight seconds
- In 2000, 35 million Americans were 65+
- By 2030, 70 million Americans will be 65+, and will comprise 20-25% of the US population
- Average annual household earnings of boomers = $53,000
- Average boomer predicted to retire with $500,000-$1,000,000 in assets
- Mature consumers possess $7 trillion in wealth 70% of the total wealth in the United States
- 66% of all US stockholders and 60% of annuity owners are boomers
Employment After Retirement:
- 83% of baby boomers intend to keep working after retirement
- By 2010, 33% of labor force will be mature workers (age 45+)
- In 2004, only 5% of retiree income came from employment
- 56% of working retirees want to work in a new profession
- 44% of retirees worked for pay at some point after retirement
- 89% returned to work to stay active, not because of financial need
- 14% of those currently working say theyâ’ll never retire
- 28% of current working retirees will continue working as long as their health permits
- By 2010, it’s estimated that US corporations will experience a 10 million shortage in talent (76.4 million Boomers replaced by 66.4 million replacement workers)
- Workforce has increased only 1.5-2.0% over the past 20 years
- 45% of US companies have special positions for mature workers
- 50% of US companies are willing to negotiate special arrangements for older workers