Survey: Boomers Have New Homes, Money on Their Min
Bloomfield, MI, June 7--Many members of the Baby Boomer generation have new homes and money on their minds, as dreams of buying retirement homes mix with concerns about how to get enough dollars in their pockets to carry them through the golden years, according to the 2005 Del Webb Baby Boomer survey.
Among younger Boomers, ages 41-49, 59% of respondents plan to buy a new retirement home, while 50% of those older Boomers ages 50-59 intend to do likewise.
Given that there are an estimated 77.5 million Baby Boomers, and they are one of the wealthiest generations in American history, retirement home purchasing among active adult buyers over the next few decades is expected to be considerable.
At the same time, Baby Boomers indicated uncertainty over how much money they'll need to save for retirement and where it's going to come from.
Just over half of all Baby Boomers surveyed (52% younger Boomers, 54% older Boomers) say they feel they have a solid understanding of the issues facing Social Security today, with 62% of Boomers ages 41-54 believing the system is "in crisis." A full 75% of the same 41-54 age group say they aren't planning to rely solely on Social Security for retirement, and 81% of respondents ages 55-69, many of whom currently draw benefits, say they, too, don't plan to count fully on Social Security.
"A lot of Boomers want new homes and a new lifestyle for retirement, but they may have to change a few things first," says Dave Schreiner, vice president of active adult business development for Pulte Homes (Del Webb is a brand of Pulte Homes).
"They recognize they may have to save more money or start thinking harder about a semi-work, semi-retirement arrangement, which isn't a huge shift from what we're experiencing today. A large number of Del Webb residents are starting new businesses, getting retrained and staying connected to the workforce. They don't leave it entirely. That's one advantage of positioning our newer communities close to large metropolitan centers - that's where the jobs are."
More than half of Boomers plan on buying a new home for retirement. About half of Boomers expect to move to another state at retirement, with many seeking a better community lifestyle.
59% of younger Boomers (ages 41-49) and 50% of older Boomers (ages 50-59) indicate they plan to buy a new home for their retirement.
Of Boomers willing to move at retirement, 66% of older Boomers indicate they would move for a better community lifestyle, and 54% would seek a warmer climate.
Nearly half (47%) of all respondents (ages 41-69) who will move say staying within three hours of family would be an important consideration about where to relocate for retirement.
Among those willing to move to a different state, the most-preferred states to move to for retirement, by age group, are: Ages 41-49, North Carolina (14%); ages 50-59 and 60-69, Florida (18% and 17%, respectively).
