Boomers also living with the boomerang effect
TORONTO, March 18 /CNW/ - There truly is no place like home for Canada's
Baby Boomers. In fact, 60 per cent of Boomers would prefer to stay in their
current community when they retire, according to RBC's 15th annual
"Even though this generation of zoomers will tell you they have plans to
travel abroad and pursue a more active lifestyle, many still want to keep
their current home in retirement," said Catherine Adams, vice-president, Home
Equity Financing, RBC Royal Bank. "Having a home base that is familiar and
comfortable and where they know their neighbours and their community is
important to them."
To make it possible to stay right where they are, just over half of the
Boomers (53 per cent) surveyed intend to do some remodelling, while 19 per
cent plan on undertaking some major renovations. As well, 24 per cent are
looking to purchase a second property, or vacation house.
Said Ms. Adams, "Interestingly, we also found that Boomers are not
attracted to "seniors-only" communities, as over three-quarters find it
appealing to retire in an area where there is a mix of younger and older
residents - perhaps because most of Canada's Boomers don't see themselves as
Boomers on the move
Of the forty per cent of Boomers who do not plan to stay put in
retirement, the type of communities they would prefer to move to fall into
four distinct categories:
- "Camp 60 Plus": 29 per cent have an affinity to retire in a close to
nature community centred on outdoor activities.
- "Let me entertain you": 22 per cent would prefer a setting that
focuses on social interactions, activities, and interests.
- "Survival of the fittest": 16 per cent would rather live in a
community which promotes a lifestyle focused on health, fitness,
nutrition and emotional well-being.
- "Reduce, reuse, retire": 15 per cent prefer a community supporting
environmentally-responsible behaviour and lifestyle.
The survey also showed that Boomers want it all. When asked to rate the
appeal of certain features relating to a possible retirement home, Boomers
were attracted to a home within walking distance of necessary services (89 per
cent), close to nature (89 per cent), well-suited for entertaining family and
friends (88 per cent), one which features everything on one floor (87 per
cent), and one which is close to water (84 per cent).
When it comes to changes in residence that Boomers are likely to make in
retirement, 40 per cent say they plan to move to a region where housing is
more affordably priced. Not surprisingly, after withstanding long, cold and
snowy Canadian winters, many boomers, once retired, would prefer a warmer
climate (35 per cent), but only a few are likely to move to a different
country (11 per cent). Men (16 per cent) are more likely than women (12 per
cent) to want to move to a different country in their retirement.
The sandwich generation
Boomers are not taking their adult children into consideration when
thinking about their home in retirement. Sixty-one per cent are not attracted
to a home that has separate quarters for adult children living at home.
However, 53 per cent are interested in a home with separate living quarters
designed to meet the needs of aging parents or relatives.
The boomerang effect
Yet, some Boomers are living with both generations. While only five per
cent of Boomers report having their parents or in-laws living with them, 15
per cent say they have adult kids aged 21 or older living at home - of that
percentage, 41 per cent have returned home to live, and a whopping 59 have
never left home. One in three (30 per cent) say the primary reason their adult
children are living with them is to save money, 11 per cent say it's because
of no job or job loss, seven per cent to save for a down payment and six
percent are living with their parents due to marriage or relationship
Boomers with mortgages
Eighty-three per cent of Boomers think it's important to pay off their
mortgages before they retire, however, 61 per cent still have a mortgage. Of
those Boomers surveyed, 22 per cent believe their home will be their primary
source of income when they retire.
"As expected, many Boomers who have yet to retire are still carrying a
mortgage, but unlike their parents, this generation may continue to tap into
their home equity, when retired, for the things that matter most to them,"
added Adams. "In early retirement, the 'middle-agers' may want to help their
boomerang kids get established, upgrade their home, or buy a vacation
property. In the 'senior' phase of retirement, they may use those funds as
income to cover any rising costs and taxes required to stay put in their
Boomers just want to have fun
Eighty-eight per cent of Boomers feel a home that is well suited for
entertaining family and friends is appealing. Over three quarters (78 per
cent) would like to have a maintenance service for their home, while 59 per
cent find a condominium community attractive, with security, landscaping, and
shared amenities - such as a pool, gym or golf course are taken care of.
Willing to downsize but not downgrade
More than half (59 per cent) of Boomers are interested in a new
construction retirement home, with the latest cutting edge designs and
features. Almost half (47 per cent) indicate that they will likely be moving
to a smaller home when they retire; only 10 per cent are interested in a
larger home. One in three (35 per cent) want a "Boomer bungalow", or
everything they need on one floor.
- Atlantic Canadians (30 per cent) are most likely to do major
remodelling to their home when they retire, and (88 per cent) most
likely to want property close to water.
- Albertans (55 per cent) are most likely to move to a different
climate altogether and most likely (92 per cent) to want a home that
is close to nature. Albertans also show a heightened tendency to move
to be closer to friends and family (54 per cent) or into a
condominium (40 per cent).
- Canadians living in Quebec (20 per cent) are most likely to want to
move to a bigger home and most likely to want a home with separate
quarters for adult children (53 per cent), in a high-rise building
with services (61 per cent), and an antique home able to be restored
and updated (42 per cent).
These are some of the findings of an RBC poll conducted by Ipsos Reid
between January 17 and 21 2008. The Boomer portion of the online survey is
based on a randomly selected representative sample of 1238 adult Canadians
born between 1946 - 1965. With a representative sample of this size, the
results are considered accurate to within +/-2.8 percentage points, 19 times
out of 20, of what they would have been had the entire adult Canadian
population been polled.
Click here to view slides.
For full tabular results, please see the Ipsos Reid website at
For further information:
For further information: Media contact: Jackie Braden, Media Relations,
RBC, (416) 974-2124; John Wright, Ipsos Reid, (416) 324-2900