Baby Boomers have blazed many new trails and always demand a variety of options.  They’re not satisfied with limited choices. That applies to what they’re expecting from retirement, too.  From retirement communities to working in retirement, and their assumptions about a retirement lifestyle, the retirement of Baby Boomers will look very different from previous generations.  Consider the following:

1. More Boomers Will Work in Retirement: Many workers today do not believe they will have enough resources to live comfortably in retirement.  Boomers’ high expectations, the end of the “pension plan”, concerns about Social Security, and a desire to continue contributing are all leading a majority of Boomers to plan on working in retirement.  Some will even start a completely new career!  Most expect to be looking for part-time work that will provide the flexibility they desire during retirement.
2. Boomers Are More Adventurous: Boomers are bolder than their parents were and are used to taking risks.  They don’t ever want to be seen as “old”!  Boomers will probably move farther from home, live in trendy destinations or more unconventional communities, and be willing to start over again if the first choice doesn’t work out.
3. Multiple Living Locations: Some Boomers have significant financial resources and the resulting freedom to live a comfortable retirement.  This will allow them to maintain a home and the relationship connection to their current community.  They will also be able to have a home in a warmer location for winter living or travel for extended times during the year.  Many baby boomers who never got to live in the big city or only lived in the suburbs will move to cities.  Cities are great for retirees – they are stimulating places, have public transportation, and offer numerous opportunities for entertainment, arts & culture, volunteering, sports, etc.
4. Retirement Community Diversification: Amenities and lifestyle themes are important for Boomers who expect to be able to pursue their interests and hobbies in retirement.  Golf communities are the current hot retirement community theme.  The trend toward more integrated communities that combine recreation, commerce, jobs, and culture will become more popular.  Other concepts include “co-housing communities” (where people know their neighbors, share meals, etc.) or “fly-in communities” (where people live next to the airport or airplane).  Another similar trend is toward the re-emergence of small towns, which have a vital downtown, plentiful recreational opportunities, and a charming appearance.
5. Boomers Like Their Current Lifestyle: Boomers are in their top earning and spending years and their spending has fueled the U.S. economy for years. In 2008, total spending by Boomers was $2.65 trillion.  But, nearly half of Boomers are “at risk” of running out of money during retirement.  Boomers who haven’t saved enough for retirement and try to maintain their current spending and lifestyle in retirement could run out of money in five to ten years.  Their parents retired comfortably, but most of them had pensions to provide stable retirement income.  Boomers who get serious about knowing what they will need (vs. want) financially in retirement have the greatest likelihood of not outliving their retirement savings. 

At Envoy, we say that “retirement is not only a reward for past service, but a stepping-stone to future ministry.”  As you plan for your retirement years, consider what will impact your retirement savings, income, and your ability to go wherever you feel called to serve.

As always, we’re available to help you with all your financial stewardship needs.  For assistance, contact our Service Team at (888) 879-1376, option 1 or by email.

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