Baby boomers and trends in retirement

The Baby Boomer generation, comprising most of today’s grandparents, are challenging the stereotypes of retirement, grand-parenting, and what type of home they are likely to live in as they age.  Born between 1946 and 1964, these are the people who were responsible for space exploration, PCs, Pac-Man and the internet; peace protests, environmentalism, the civil rights movement and the fall of the Berlin Wall; rock ‘n’ roll, pop, disco, heavy metal and hip-hop music – all while raising their own families and often, also caring for their ageing parents.

Breaking the retirement mould

It is not surprising therefore that the Baby Boomers are set to break the retirement mould.

Baby Boomers reported having the highest average income range. More Baby Boomers reported a R70 000+ monthly income than any other generation and 77% own their own home and tend to try and stay healthy and live much longer than their forbearers.   They are seemingly determined to enjoy a much more active lifestyle and become ‘re-fired’ rather than retired after 60 or 65.  Only 11% of Baby Boomers are not working and 25% work in the professional technical industry!  32% of Millennials are not working, as are 17% of Gen X unemployed.

Only 40% of Millennials own their own home.  24% of the Silent Generation live alone while Millennials are least likely to live alone. The majority of Generation Z live in a house of 6+ people while 39% of Baby Boomers live with just one other person.

Although the oldest of the ‘Boomers’ are in their 70s in 2017, they generally won’t be found pruning roses, baking cookies or rocking the days away on the veranda.  Most will still be running businesses or starting new ones, taking classes or setting out on a ‘second career’ as a consultant, freelancer or teleworker.

41% of Generation X are the main decision makers in the home while 54% of Baby Boomers are joint decision makers.

Savings

As mentioned in our previous article – many of the Baby Boomer generation need to keep working and earning an income for as long as they can, as they might not have enough saved to live on for the next 20, 30 or even 40 years.

The Insured Retirement Institute of America (IRI) released their latest statistics that show that even in an affluent country like the US, 45% of Boomers actually have no specific retirement savings, and that more than 25% plan to retire “sometime after 70”, compared to 17% just 5 years ago.

A recent Urban Institute study also found that 56% of men aged 62 – 64 are working or looking for work, which is an increase of 11% from 23 years ago (1994). The statistics for women has increased to from 33% to 45%.

Downsizing

Many Baby Boomers are remaining longer in cities and big towns where it is easier to find employment.  The trend over recent years though has been to downsize the family home to a smaller home, and this is driving up demand for well-located apartments and townhouses in secure complexes. Retirement villages are in increasing demand for those that can afford to invest in them, especially if they have on-site healthcare.

On the other hand, some Boomers are keeping the family home as their working children move back in with them and they now help raise the grandchildren!

This trend is being fuelled by the soaring cost of child-care, as well as the high incidence of divorce and single-parenthood.  An increasing number of grandparents are now also living in a cottage on the same property, or even in the same house as their children and grandchildren, in a return to the extended family lifestyle that was commonplace before the 1940s. This in turn is beneficial to everyone in terms of shared expenses, better security and additional social and emotional support.

Lifestyle report for South Africa

The Generational Lifestyles research report in South Africa 2017 released by Effective Measure, looked at internet use, mobile habits, household composition and financial trends of major age groups within South Africa.  The report was conducted by means of an online survey, with 8751 respondents between July and August 2017.

Shopping trends

46% of the respondents had bought something online with 57% being male and 45% over the age of 50 years old.   26% of Baby Boomers and 32% of the Silent Generation buy travel and accommodation online.  Software and electronics purchases are made by Generation Z (26%), Millennials (23%), Generation X (19%) and Baby Boomers (18%).

Generation Z respondents report that they love shopping more than any other generation, but they also save money more than others. Generation X report feeling more stressed when thinking about managing their money.

Work and Education

51% of the Silent Generation have a university education compared with 13% of Millennials and 11% of Generation Z.

74% of Generation X are full-time or self-employed while at 36%, Generation Z reports the highest level of unemployment followed by Millennials at 32%.

Media and Technology

30% of all generations have a television in their household. At least 23% of all generations source their news from television, followed by radio and online news sources.

Print magazines are only ready by 8% of all generations, and 20% of Generation Z get their news off social media.

Generation X and Baby Boomers report feeling most at ease with computers, phones and new technology. 27% of Generation Z use their phones hourly.

The Internet

The Silent Generation reported the highest percentage of internet usage at 89%; 23% of Generation X respondents go online for 5+ hours per day.

17% of all generations accessed the Effective Measure survey from their mobile phones; (out of 2914 respondents) 84% of Millennials accessed the mobile survey using mobile data, while 60% of Baby Boomers accessed the desktop survey using an ADSL connection.

Life and Leisure

On average all generations spent more time with family than browsing the internet. The importance of time spent with family and friends increased with the age of the respondents.

23% of Generation Z reports that currently learning new skills and furthering their education is most important, while 24% of Millennials report that making money is their highest priority.

The Silent Generation report their highest priority is being fit and healthy, followed by Baby Boomers.

Both these generations reported travelling and wine as an online purchase priority!

References:

1. http://www.news24.com/SouthAfrica/Local/South-Coast-Fever/boomers-return-to-extended-family-living-20170208
2. http://themediaonline.co.za/2017/08/insights-into-south-africas-generational-lifestyles/
3. http://www.continentaloutdoor.com/20-product-range/84-baby-boomers-network
4. http://www.smesouthafrica.co.za/17484/Internet-And-Lifestyle-Habits-Of-South-Africans/