Most boomers will stay put in retirement
60% of Canada’s baby boomers intend to remain in their current community when they retire, according to RBC’s 15th annual home ownership study.
While so-called “zoomers” dream of foreign travel and an active retirement lifestyle, they also want a familiar home base where they know their neighbours and community, says Catherine Adams, the Royal Bank’s vice president of home equity financing.
Thus, 53% of 1238 boomers born between 1946 and 1965 intend to remodel their homes, while 19% expect to undertake major renovations. And 24% also intend to buy a second property or vacation house.
Boomers do not appear to be attracted to “seniors-only” communities: more than 75% are more interested in living in an area with a mix of younger and older residents. Ms Adams speculated that may be “because mot of Canada’s boomers don’t see themselves as old.”
RBC found four distinct categories of “roving” boomers: the 40% who do plan to be on the move. Within this group, 29% are Camp 60 Plus and will want to retire in a community close to nature with plenty of outdoor activities; 22% are dubbed “Let me entertain you” and will choose settings focused on social interactions and activities; 16% are termed “Survival of the Fittest” and will focus on communities oriented to health, fitness, nutrition and emotional well-being; and 15% were categorized as “Reduce, Reuse, Retire,” emphasizing environmental responsibility.
Not surprisingly the poll – conducted by Ipsos Reid in January – finds boomers still want it all. 89% want a home within walking distance of necessary services; 88% want a home appropriate for entertaining friends and family; and 84% want to be close to water. Interestingly, 87% want a home which features everything on one floor – it appears aging boomers are becoming aware their bodies may not always be up to frequent trips up and down stairs! One in three want a “boomer bungalow” with everything on one floor.
Among the mobile boomers, 40% seek more affordable housing : 47% of the total group expect to move to a smaller home in retirement versus only 10% that want a larger home.
Snowbird boomers
While 35% will seek warmer climates to get away from Canada’s harsh winters, only 11% expect to move to a different country. Hmmm, maybe they consider Florida to be our 11th province?
Sandwich generation
Despite the oft-used phrase “sandwich generation,” 61% are not attracted to homes that have separate quarters for adult children still living at home. Even so, 53% would consider separate living quarters for aging parents or relatives. The “boomerang” effect is more likely: 15% report that adult children aged 21 or more are still living at home, while only 5% of boomers report having parents or in-laws living with them.
Debt in Retirement
61% of the boomers surveyed still have a mortgage although 83% believe it’s important to have them paid off before retirement. 22% believe their home will their primary income source in retirement (presumably through home equity lines of credit or reverse mortgages).
Convienience
78% of the boomers surveyed would like a maintenance service for their home while 59% expect to be attracted to condominiums where security and landscaping are taken care of and they can share amenities like pools, gyms or golf courses.
For more, see here.
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Photo: A bungalow in downtown Vancouver.
Brian Hutchinson/National Post
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