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The Retiree Surge Is Here

  

Category:  News & Politics

Via:  robert-in-ohio  •  8 years ago  •  17 comments

The Retiree Surge Is Here

Tomorrow’s retirees will completely transform the housing industry. We have done a tremendous amount of research on this group, all of whom were born in the 1950s. We call them the Innovators  because they have created so many innovations throughout their lives. They are:

  • Tech savvy, which began with their space race fascination as kids
  • Family-oriented, with almost 50% reporting that they intend to live with their parent or adult child in the near future
  • More affluent than any prior generation of retirees, thanks to:
    • Careers that perfectly coincided with a strong economy
    • A workaholic attitude that led to more double-income households and delayed retirement
    • 80% homeownership, with the majority having no mortgage today
    • 30 years of falling interest rates boosting home values and retirement accounts

All of these factors above will play into the Innovators’ next housing move. They will:

  • Innovate “retirement” to be more about health, family, experiences, and continuing to work rather than strictly leisure
  • Move several more times, including selling their home and choosing to rent for a few years in an urban area that is walkable to entertainment
  • Focus more on living near their kids, with huge rewards to the builders who sell multigenerational-living homes that satisfy Innovators’ needs
  • Continue migrating south, but not just to the traditional retirement areas, as they will want to be near their kids and a job

The chart above comes from our upcoming book The Big Shifts Ahead: Demographic Clarity for Businesses  and shows how dramatic the retirement surge has been recently—and will be in the future.

And the best part of the article in my view----

Questionnaire


Do you believe those born in the 1950s ( Innovators aged 56–65 today) will be more or less likely than the prior generation, those born in the 1940s ( Achievers  aged 66–75 today), to:

  • Remain in their current home
  • Move to a vacation destination in the South
  • Move to be near their children and grandchildren
  • Move to an age-restricted retirement community
  • Move to a major metropolitan city

 

 

https://www.linkedin.com/pulse/retiree-surge-here-john-burns?trk=hp-feed-article-title-channel-add


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Robert in Ohio
Professor Guide
link   seeder  Robert in Ohio    8 years ago

My answers to the survey

Do you believe those born in the 1950s (Innovators aged 56–65 today) will be more or less likely than the prior generation, those born in the 1940s (Achievers aged 66–75 today), to:

 

  • Remain in their current home -- YES
  • Move to a vacation destination in the South -- NO
  • Move to be near their children and grandchildren -- YES
  • Move to an age-restricted retirement community -- YES
  • Move to a major metropolitan city --NO
Please share your perspective on these questions
 
 
 
XXJefferson51
Senior Guide
link   XXJefferson51  replied to  Robert in Ohio   8 years ago

I'm 56 born in 1960.   Yes to the 1st question and no to all the others.  Won't move as family is already here for the most part.  Can't afford a vacation home.  I plan to have my home and all other debt paid off before retirement and live off of social security, pension, 403b and Ira in traditional format while holding on to my Roth 403b and Ira as long as possible.  I hope to have a taxable account to spend on medical, home, auto, and travel needs.  I will definitely go with a Medicare advantage plan offered through AMAC, our AARP equivalent.  

 
 
 
PJ
Masters Quiet
link   PJ  replied to  Robert in Ohio   8 years ago

I don't plan on staying in my current home.

When I retire I don't want to move to a vacation spot in the south 

I don't need to be close to family.

I have no plans to move to an age restricted community

I'm not sure about moving to a city

I'm confused and haven't decided what I want to do yet.  

 
 
 
Robert in Ohio
Professor Guide
link   seeder  Robert in Ohio  replied to  PJ   8 years ago

pj

At least you are thinking about retirement - that is the first step to being prepared.

 

 
 
 
PJ
Masters Quiet
link   PJ  replied to  Robert in Ohio   8 years ago

Well I have my retirement funds in order but I'm still a bit away from retirement.  My husband wants to go South and I DO NOT.  I have been conceding on vacations and living locations for our entire relationship.  This could very well be a deal breaker.  My ideal retirement would be to retire abroad.  I could be an expatriate.

 
 
 
Robert in Ohio
Professor Guide
link   seeder  Robert in Ohio  replied to  PJ   8 years ago

To each his own as they say - for me a small NE Ohio village surrounded by family and friends is paradise

 
 
 
Robert in Ohio
Professor Guide
link   seeder  Robert in Ohio    8 years ago

The surge in the number of retirees is only beginning

 
 
 
Dowser
Sophomore Quiet
link   Dowser    8 years ago

We're in a 2 story home, with the laundry in the basement-- and it is killing me.  The house is too big for me to keep and too much trouble.  I dislike the arrangement, dislike so many features of this house-- I want out of this house as soon as I can, to find a home on one floor, and not many steps.  So, we're working toward that goal.  

I would like to move to a smaller town, because traffic here sucks, but not too far away, because my doctors are here, and we do have excellent medical care.  I grew up in a smaller town, so feel that I would 'fit' into a smaller town again.  Not sure about my dear husband...  But he gets along with just about anyone and can talk to anyone about anything, and I think that socially, he'd be fine.  

I don't know about anyone else that is retired, but I need to have some things that are familiar around me, and some things could be "tweaked" so as to be a bit more 'doable'.  

As far as the housing market goes, it seems that here, most of the new houses that are being built are HUGE.  So, I don't see that that is going to help a lot of retirees, who are down-sizing.  I'm not interested in a retirement community, nor is my husband, but I want to be a regular part of the community.  A different climate would be nice, but that requires a major relocation, and I don't see us doing that...  Besides, here there are 4 seasons, and I'm used to that...  I could do without the heat and humidity of summer, or the cold and ice storms of winter, but as a whole, if you don't like the weather, just give it a few days, and it will change.

Great article, RIO!  Thanks!

 
 
 
Robert in Ohio
Professor Guide
link   seeder  Robert in Ohio  replied to  Dowser   8 years ago

Dowser

We went through some of the same issues two years ago when my wife was very sick

We were lucky enough to sell our "forever" home and get into a pond surrounding new development of ne story dwellings right here in our village.

We are very happy to stay close to family and friends, be in a house that works for us and that we can afford.

Everyone is not so lucky in selling when they want to buy something else.

 
 
 
Dowser
Sophomore Quiet
link   Dowser  replied to  Robert in Ohio   8 years ago

Yep!  I have high hopes, but not unrealistic expectations-- I hope...

 
 
 
Robert in Ohio
Professor Guide
link   seeder  Robert in Ohio  replied to  Dowser   8 years ago

Good planning and patience is often the key to attaining expectations I have discovered over the years

 
 
 
XXJefferson51
Senior Guide
link   XXJefferson51    8 years ago

The bigger issue in retirement will be those dependent on IRA's and 401ks who have to sell to live off the revenues and possibly not enough new buyers to keep the prices from falling. By the time I at the tail end of the boom need to retire the numbers should begin to even out.  The saving grace is that there is no mandatory dispersal of funds at age 70.5 or any age for Roth investments, so those won't be pressuring selling prices down for current retirees.  If there was a market sell off, current retirees would be hurt and future ones will buy in low.  

 
 
 
Robert in Ohio
Professor Guide
link   seeder  Robert in Ohio  replied to  XXJefferson51   8 years ago

People certainly need to properly plan and use their retirement funds - social security, pensions and private retirement accounts and their real estate as retirement approaches.

 
 
 
XXJefferson51
Senior Guide
link   XXJefferson51    8 years ago

Indeed we do.  It would likely wise for retirees in California who have own their own homes a long time, particularly before 1975 to stay put.  Especially if one can pass it on to a child who is also a senior citizen.  Getting a paid off home and having its property taxes grandfathered in is a major plus.  

 
 

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