Life Stage Insights

link-4088190_1280.png
letters-1132703_1280.png
smartphone-1132677_1280.png

‪(415) 598-8566‬

Abstract Glow
More boomers are not downsizing for retirement

Life Stage Insights

Life Stage Insights

More boomers are not downsizing for retirement

A growing number of baby boomers are choosing not to downsize their homes during retirement, but instead will stay in their current home or even upsize.

A growing number of baby boomers plan to stay in their current home rather than downsizing in retirement, according to a recent report.(1)


Half (52%) of boomers (who are now age 55 to 73) say they will never move from their current home. But even among those who plan to move, 43% expect their next home to be the same size as their current one, and 22% want to move to a larger home.


Pre-retirees who anticipate funding part of their retirement by moving to a smaller home should take note that there can be some important downsides to downsizing.


Accommodating family needs is one of the top reasons retirees choose not to downsize. Many boomers find their millennial children living with them well into adulthood, or “boomeranging” back home when faced with difficult job or housing markets. One in six senior households have younger generations living with them, according to the US Census. Moreover, many choose to remain in a larger home as an attractive place for grandchildren and other family members to visit during their retirement years.


There is also now a shortage of smaller, less expensive houses, pushing up prices and making it less attractive to downsize. From 2012 to February 2019, the bottom third of homes with the lowest prices appreciated an average of 8% a year, versus 5% for the most expensive units, according to an analysis by Trulia.


With mortgages paid off, many boomers are choosing to invest in their current home with improvements, according to the report. This can include renovating their homes to make them more aging-friendly.

leisure time2.PNG

leisure time2.PNG

leisure time2.PNG

leisure time2.PNG

Watch Video
Business Graphs

Content Title

Subtitle

Source

Business Graphs

Content Title

Subtitle

Source

Business Graphs

Content Title

Subtitle

Source

Business Graphs

Content Title

Subtitle

Source

Business Graphs

Content Title

Subtitle

Source

Business Graphs

Content Title

Subtitle

Source

Business Graphs

Content Title

Subtitle

Source

Business Graphs

Content Title

Subtitle

Source

information_button_symbol_800_clr_6174.p
I would like to learn more about...

Financial advantages of downsizing in retirement

Deciding where to live in retirement

Other topics related to purchasing or selling real estate

Enter

Thank you. Your inquiry has been sent.

Please enter your contact information

magnifying_glass_800_clr_16614.png
What is My Life Stage?

Explore your life stages and events to help uncover your financial planning needs.

Get Started
About us

Life Stage Insights is the turnkey lead generation, relationship-building, client discovery, and wow factor solution for financial advisors. Learn more at www.lifestageinsights.com

references

1.  “More Baby Boomers Stay in Their Homes as They Reach Retirement, Skipping Downsizing,” USA Today (May 21, 2019)

Disclosures

This publication is designed to provide general information and is for discussion purposes only. The effectiveness of any strategy is dependent upon each individual’s facts and circumstances. This article does not provide legal, tax or account advice. Because of the possibility of human or mechanical error, the accuracy, adequacy, completeness or availability of any information is not guaranteed.

More from Life Stage Insights
Gen Xers Slammed by Inflation

Gen Xers Slammed by Inflation

One in five retirees looking to return to work due to inflation

One in five retirees looking to return to work due to inflation

Should you combine investment accounts when you get married?

Should you combine investment accounts when you get married?

Two-thirds of 401(k) plan participants view themselves as savers, not investors

Two-thirds of 401(k) plan participants view themselves as savers, not investors

Retirees on Social Security Beginning to Struggle

Retirees on Social Security Beginning to Struggle

Financial strategies for newlyweds

Financial strategies for newlyweds

Four steps to achieve a more secure retirement

Four steps to achieve a more secure retirement

Retirement Planning: Moving From Concepts to Specifics

Retirement Planning: Moving From Concepts to Specifics

Inflation having widespread impact on financial planning

Inflation having widespread impact on financial planning

How can siblings navigate caregiving for parents?

How can siblings navigate caregiving for parents?

Most Americans ‘completely lost’ when it comes to health insurance

Most Americans ‘completely lost’ when it comes to health insurance

Having a Guaranteed Income Can Improve Your Health and Happiness

Having a Guaranteed Income Can Improve Your Health and Happiness