In a survey of still-working adults age 55 and older, the majority of the respondents say they are not delaying retirement and believe they will be financially prepared to retire when the time comes.
According to the most recent PulteGroup Home Index (PGHI) survey conducted by national homebuilder PulteGroup, Inc., 61 percent of the respondents plan to retire in less than 10 years, including 46 percent who believe they will be financially prepared to retire in the same time period. Among this same group, 59 percent said that they are either not delaying retirement or plan to retire at a younger age than originally anticipated.
“The survey results seem to defy expectations that the economic slowdown of the past five years has forced many baby boomers to rethink their retirement plans,” says Deborah Meyer, senior vice president of PulteGroup, Inc. “On the contrary, these results suggest that future retirees are likely making financial adjustments now so that they can enjoy the full benefits of the next chapter of their lives.”
When comparing previous consumer surveys, Meyer reports there is an upward trend in the percentage of baby boomers becoming more financially prepared for retirement. In the 2010 Del Webb Baby Boomer Survey, approximately 46 percent of the respondents said it would take 10+ years before they would be financially prepared to retire, compared with only 14 percent of the respondents polled in this quarter’s PGHI survey.
Other survey highlights include:
- 32 percent plan to retire in less than five years
- 49 percent of respondents’ expected age of retirement has not changed
- 10 percent of respondents expect to retire at a younger age than originally anticipated
- 27 percent believe they will be financially prepared to retire in less than five years
- Only 12 percent of those who are delaying retirement say that selling their home and/or the value of their home is a barrier to retirement
Additionally, for today’s 80 million boomers, the choices vary on where to spend their retirement years. Some consumers surveyed choose to stay in place in the city where they currently live; whereas others move to seek warmer climates, such as Arizona, the Carolinas and Florida.
In a significant shift, 62 percent of survey respondents think their home in retirement will be within the same state they currently live. This represents nearly a 20 percent increase compared to just two years ago when Del Webb asked the same question in the 2010 Del Webb Baby Boomer Survey.
Another key trend is a desire to continue working. “We’ve seen the desire to continue to work. To better accommodate the work and play needs of baby boomers, Del Webb has opened communities near large metropolitan cities and employment corridors, better allowing customers to stay in place and continue to work,” Meyer says. “With more than 50 percent of our Del Webb residents working part-time, starting new businesses or new careers, it’s not surprising that they want to stay connected to their current community, but still take advantage of the active lifestyle at a Del Webb community.”
Source: Pulte Homes, Inc.