Retirement for Younger Baby Boomers Will be a Different Experience

Younger baby boomers, those aged 50 years old in 2010, foresee a vastly different retirement world than 50 year-olds who were surveyed in 1996. According to a pair of surveys by active adult community developer Del Webb, today’s 50 year-old plans to retire four years later, at a median age of 67 versus age 63 nearly fifteen years ago. Fully 73% of baby boomers plan on continuing to work in retirement. That contrasts with current retirees living in Del Webb communities, of whom just 40% have actually worked since retirement. The conclusion drawn by Del Webb is that today’s younger boomers don’t see retirement as necessarily the end of their working life, but possibly something pushed out further or which includes work in some form or another.

Financial Readiness
Today’s 50 year-olds are much more pessimistic about their financial readiness for retirement than those of 15 years ago. Most of that is probably realism and conservatism brought on by the recent recession, since today’s 65 year olds are generally far less upbeat about their retirement finances now than they were 15 years ago. Today’s 50 year old is half as likely to be financially prepared for retirement, at 16 percent versus 34 percent in 1996; and three times as likely to indicate they will never be financially prepared for retirement, at 41 percent versus 15 percent. These pessimistic statistics are very close to what was reported earlier this year in a survey from the Employee Benefit Research Foundation. A frightening statistic is in the savings department; at 23 percent versus 11 percent today’s 50 year old is twice as likely to not even have begun saving for retirement.

Moving Out
According to the Del Webb survey, nearly a third of older Baby Boomers plan to move in retirement, with more than 50 percent planning to move to a different state. About 25 percent of them plan to move to a different city within the same state, and less than 20 percent of older Boomers planning to move within the same city.

Today’s 50 year olds, the younger baby boomers, are more likely to be moving in retirement that those who turned 50 in 1996. In the Del Webb survey the younger Boomers, those who turn 50 this year, 42 percent plan to move in retirement as compared to 36 percent among 50 year-olds in 1996.

Carolinas on Top
According to the 2010 Del Webb Baby Boomer Survey, the Carolinas have emerged as the preferred destination for retirement, while perennial favorites, Florida and Arizona, remain top contenders. Both younger and older Baby Boomers ranked either South or North Carolina first as their preferred location in retirement—with the other Carolina ranking as their second choice.

Reasons for Relocating
Among younger Baby Boomers looking to move, the most important factors in deciding where to relocate weighed heavily towards an area’s cost of living (81%) and access to preferred healthcare programs (66%). Surprisingly, cultural and recreational amenities, as well as a more favorable climate, ranked higher than being close to family members, including parents, children and/or grandchildren. Among people who are already retired, cost of living and healthcare access were most important factors, followed by cultural activities (access to family and friends was also low-ranked in this age cohort).

For further Reference:
Retirement Confidence at Rock Bottom
Where are Baby Boomers Retiring to?
Del Webb Survey – Baby Boomer Retirement Survey – Working to Live
Del Webb Survey – Baby Boomers on the Move

What do you think?
Do these survey results jibe with your own personal experience and attitudes? Let us know in the comments section below.