The vast majority of working baby boomers ages 50 and over say they plan to delay retirement, as outlined by a survey by The NHP Foundation, a nonprofit real estate corporation supporting affordable housing. The expense of housing could possibly be the reason why.
When will boomers vacate? Earlier than some think
Prospective retirees say their top three concerns are an inability to cover quality health care (36%); reliance upon children (28%); and the need to select a living situation inferior to their preference (22%), as reported by the survey. 85% of respondents say they’d wish to remain in their current home, however, many could possibly be forced to consider renting a room or trying to find more cost-effective housing options.
Older homeowners are carrying nearly twice the mortgage debt than people their age ten years ago, as per data from the Consumer Financial Protection Bureau, and the NHP Foundation thinks that this could possibly be why an increasing number of baby boomers intend to delay retirement. “With one in four in desperate need of affordable housing – equating to 2,500 new retirees every day – there needs to be a priority to create an adequate supply of affordable rental housing for boomers now and in the future,” says Richard Burns, president and CEO of The NHP Foundation. 31% of survey respondents say they haven’t yet prepared a retirement budget, and the majority had not budgeted for unforeseen health-related expenses.
“There is a disconnect between baby boomers’ current financial status and where they perceive themselves in retirement,” Burns says. “This wishful thinking carries potential consequences that will likely have a large impact throughout all areas of the economy.” Of an estimated 78 million baby boomers, about 10,000 reach retirement age on a daily basis, as per The NHP Foundation. Source: The NHP Foundation