If you’re one of the 76 million Baby Boomers now just entering their 50s, your attitude toward retirement may determine where you’ll live when you get old. A recent survey conducted by Roper Starch Worldwide for the American Association of Retired Persons (AARP) shows that Baby Boomers have extremely different perspectives about retirement and their futures.
Many Boomers have a very confident attitude about their prospects. But a third of them are pessimistic, reflecting a division between the “haves” and “have-nots.”
The study identified five groups of Boomers based on their attitudes about retirement. The study didn’t specifically ask them about housing. But Holly Heline of Roper Starch in New York did provide some insights into where and how the five Boomer groups will live when they retire. Heline, by the way, is a trends expert who has conducted quite a bit of additional research on the Boomer generation’s future housing preferences.
– The Self-Reliants (30 percent). The largest group also has the highest income and education level. The Self-Reliants have the resources to save and are aggressively putting money into retirement-oriented investments. But this group expects to continue working, motivated not by finances, but by the interest and enjoyment provided by work.
“The Self-Reliants are not necessarily going to move,” Heline said. “But they may be looking for different housing options.”
As Heline explained, the Self-Reliants are information-seekers. They want to learn what they need to know in order to handle the aging process.
An affluent group, the Self-Reliants will have homes that include all the things they never had before. Their homes will also be “wired” with offices and entertainment/media centers.
Because the Self-Reliants value independence over everything else, they will be less likely than other groups to join a retirement community.
– The Enthusiasts (13 percent). This smaller group is also extremely confident about the future but they do not plan to work at all during retirement. The Enthusiasts are traditional and very similar to the affluent retirees we see today. This group doesn’t seek information to the same degree as the Self-Reliants.
The Enthusiasts will want to relocate and they may keep two residences, say, one in Florida or Arizona and another in their home town. This group is looking for the conventional retirement experience, Heline said.
The Enthusiasts are the group most likely to join a retirement community targeted at active adults. They are also the most likely candidates for continuing-care retirement communities, nice places that help seniors through each of the last stages of their lives.
– Today’s Traditionalists (25 percent). Though less affluent than the Enthusiasts or Self-Reliants, this group is also optimistic about retirement. They plan on working for both pleasure and income. Today’s Traditionalists also express a greater than average confidence in the Social Security and Medicare programs to meet their needs during retirement.
“This group won’t want to leave their current homes behind,” said Heline. They will need, and want, to keep working. So they will stay where they have connections.
This raises all kinds of potential problems like those seen with today’s seniors who remain in homes that need modifications in order to accommodate an elder resident.
– The Anxious (23 percent). Though this group is striving to put something aside for retirement, they are best characterized by their sense of apprehension about their later years. Their average household income falls below the average for Boomers (by about $10,000).
Many do not expect to be able to stop working and express great concern about health care coverage in their retirement years.
– The Strugglers (9 percent). This group has the lowest income (median income about $30,000 below average) and are saving virtually no money for retirement. Strugglers are disproportionately female (64 percent), more likely to be single, separated or divorced and have given relatively little thought to retirement.
The last two groups represent a big challenge for society, Heline said.
“We are going to face housing issues for what will be the largest group of unfortunates during retirement that we’ve seen to date,” she said. “These groups will not be able to take care of themselves.”
This means the construction of so-called affordable housing for the elderly may become a big priority for government.
Resources
– The Assisted Living Federation of America says the percentage of private rooms in assisted-living facilities has increased over the last three years. The group, in Fairfax, Va., took a survey that found average unit size is increasing, too, from 666 square feet in 1996 to 778 square feet in 1998. A spokesperson for the association said builders are listening to consumers who want large, private, home-like units. ALFA publishes a free consumer guide and check list on how to select an assisted-living facility. Visit their Web site at www.alfa.org, or call 703-691-8100.
– Oak Park Arms Retirement Community has opened an Internet site at www.oakparkarms.com. The site has an on-line tour including stops at the restaurant and a visit to the entertainment room and library. The tour also includes a stop at the Senior Citizens’ Center of Oak Park/River Forest. Visitors to the site can also arrange a personal tour and lunch at Oak Park Arms by clicking the “arrange a visit” button. Or call 708-386-4040.
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Jane Adler is a Chicago-area freelance writer. If you have questions or information to share regarding housing for senior citizens, write to Senior Housing c/o Chicago Tribune Real Estate Section, 435 N. Michigan Ave., Chicago, IL 60611. Or e-mail adler@megsinet.net
