There is nothing retiring about it
New terms like zoomer, semi-retired, and aging in place are popping up in the lexicon to describe the lifestyle anticipated by the generation now turning 60 as it remakes the whole concept of retirement. Consumer research presented in January 2006 at a convention of the National Association of Home Builders in Orlando, Fla., provided some eye-popping numbers. A stunning 57 percent of homeowners ages 55 to 64 expect to purchase some form of retirement, investment, or second-home property within the next five years.
Although baby boomers may be rethinking their homes to ease a future transition into a carefree lifestyle, a speech given by the AARP's Chris Hansen revealed that 85 percent of respondents expect to live in their current town or community, close to family and friends, and 80 percent expect to work - perhaps even start a new career- after retirement. Not planning to retire in the traditional sense, these boomers view their "retirement years" as a time of lifestyle transition rather than a termination of employment. Only 16 percent expect not to work at all after retiring from their career.
The AARP says the latest wave of retirees is less likely than their parents' generation to move across state lines. "Once again they are breaking the rules," says Hugh Delehanty, editor in chief of AARP: The Magazine. "This time they have bumped traditional retirement communities and are looking for something different." According to Delehanty, boomers see their home as their "legacy." More than previous generations, boomers tend to get along with their kids and have no plans to get away from them. For those who do move, familiarity and comfort are key. That can mean keeping close to family, or possibly moving to a favorite recreation area to create a gathering place for their families. Some opt for smaller college towns, which can offer great medical facilities, sophisticated restaurants and a youthful vibe.
To appeal to these "new retirees," who are unwilling to live in an age-restricted community, some developers are targeting what they refer to as the "legacy buyer." According to Peter Pollak, developer of the Ford Plantation north of Savannah, Ga., and the Greenbrier Sporting Club in West Virginia, "We are seeing a generational purchase of a family heirloom. Our members are people who have a strong family connection and a committed sense of stewardship of the land. They want an outdoor lifestyle and are open-minded about wanting to learn new endeavors. Before buying, they consider the beauty of the property, the safety of its location, a sense of community and whether it offers year-round use."
Just don't mention the words "retirement," "senior," or "old folks." These are active-adult communities for owners who don't want the bother of maintenance that comes with a larger, single-family home, preferring instead lock-it-and-leave convenience and resort-style amenities.
Jeff Jenkins, assistant director of the National Association of Home Builders - 50+ Housing Council, says, "The days of shuffleboard are long gone. These buyers today are more sophisticated, they're more affluent, they want to be engaged on many different levels." They want more amenities - areas for grandchildren, exercise rooms, home offices in a single floor plan - to enjoy an active retirement and family life, and they have the money to satisfy their demands. According to Dan Bom, director of communications for the Society of Certified Senior Advisors, the mature market has more than $1.6 trillion in spending power, with a net worth nearly twice the U.S. average and 26 percent greater income per capita than the national average.
Among those who choose to age in place, many remodel their family home to include amenities like a first-floor master suite and bigger bathrooms. Others who opt to relocate to adult communities are not necessarily moving to the Sun Belt, as their parents' generation did, preferring instead to be closer to home. That trend has developed gradually over the last decade; according to the NAHB, in 1995, 78 percent of adult communities were being built in Sun Belt states. Today, that percentage is less than half.
One trend in the Midwest and Northeast is toward smaller "active-adult" communities, of 200 or so homes. Even Del Webb Corporation - which pioneered the idea of active-adult developments in 1961 with its Sun City project in Arizona - is thinking small. The company, now owned by Pulte Homes, has started to build smaller communities across the country. These are designed to serve local buyers in locations that one would never consider as resort destinations, places like Somerset and Voorhees, N.J.; Pike County, PA.; Plymouth, Mass.; and Falls Run, Va.
Zoom, zoom, zoom - this isn't your grandfather's retirement!
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