Baby boomer generation changes the rules of retirement

The first wave of baby boomers turned 60 last year. It’s just the beginning of a dramatic shift in demographics and lifestyle that will create the largest senior citizen population this nation has ever known.

For those who work in the retirement field, it must feel like their ship is about to come in. But the shift also will have a major impact on our communities and our economy. Here are some predictions.

About 59 percent of younger boomers (ages 41-49) and 50 percent of older boomers (ages 50-59) indicate they plan to buy a new home for their retirement, and 36 percent of younger boomers and 49 percent of older boomers who will move plan to downsize their homes. Of boomers willing to move at retirement, 66 percent of older boomers indicate they would move for a better community lifestyle, and 54 percent would seek a warmer climate. About 47 percent who will move say staying within a three-hour drive from their families would be an important consideration about where to relocate for retirement. For those who are willing to relocate to another state, the most preferred states are North Carolina and Florida.

A study conducted by the Research Institute for Housing America indicates that only 2 percent of retirees can be expected to move closer to urban areas upon retirement. Experts anticipate that many retirees will move away from urban areas to take advantage of the quality of life and amenities that smaller communities provide. In many cases, these retirees will establish second homes, allowing them to maintain a base in an urban area near health facilities and cultural activities.

In 2005, 12.2 percent of the homes sold in the country were second homes. The data indicate that the typical second-home buyer is 52 years old, has an income of about $83,000 and typically purchases a property about 200 miles from the first home location. Another attractive feature of finding a second home for retirement is the ability boomers have to pick homes based on what they really like in a dwelling, as opposed to proximity to a school district, the age of the neighbors and other child-focused factors.

Even though baby boomers are facing retirement, the idea of living in “retirement communities” is particularly unappealing to them. While their parents embraced the idea, boomers want nothing to do with retreating to a homogenous community of aging residents. Experts tell us that home builders should avoid anything “planned, large or developed” or any words that imply “retired” or “senior.”

Another consideration is the fact that boomers are often retiring at a younger age than their parents did, so one of the issues they face is caring for aging parents at the same time they are leaving the workforce. As a result, many retirees may look for homes that have in-law apartments or the option to create a separate living space for a family member. This may mean they want a single-level floor plan, wider door openings and lever door handles to accommodate aging parents or themselves as they age.

Builder Magazine reports that many boomers, full of nostalgia for an earlier time, are seeking communities that have the small-town look and feel of the 1950s and 1960s. But these residents are not content to just sit and contemplate the past. They are interested in lifelong learning opportunities. For instance, near Tucson, about 120 retirees live in Academy Village, which is a 35-minute drive from the University of Arizona campus. The university provides transportation to the campus for retirees to attend college-credit classes. Other communities are being developed around common themes, such as golf or the arts.

Other important elements for retirement living include fitness and access to workout facilities.
This generation of seniors also is tech savvy, and technology is becoming more prominent in senior living communities, enhancing interaction and helping to boost independence. And many retirees want to relocate where there are jobs, as many want to work—at least part-time—beyond their official retirement age.

In more traditional retirement residences, apartments are being transformed into “smart houses” where lights can be turned on, drapes drawn and water temperature controlled with the touch of a button.

Whether in a second home or in a private home at a retirement community, buyers want open, airy living spaces that blend together. Large kitchens that are open on one or more sides to an informal dining area are a big plus. Patios and decks are important, as are gardening areas.

It’s obvious that the rules about retirement are changing. Not only are those reaching retirement now younger, healthier and more active than the generations before them, they are financially able to enjoy a quality of life that their parents could only envy. And those who create accommodations for them need not plan for rocking chairs on the front porch. v

Virginia Wilson is a counselor with the Missouri Small Business Development Centers in the University Center for Innovation and Entrepreneurship at the University of Missouri-Columbia. Reach her at 882-7096.