If boomers are less likely to retire, where will they (not) retire to?

This morning, I am speaking to the American Home Furnishings Alliance at their annual conference, being held in Myrtle Beach. And one of the questions I have is about changes in traditional life stages and in generational economics.

Once upon a time, when people reached 62 or 65 or so, they retired. Today, boomers are less likely to do so, according to this story from Engage: Boomers, a publication of Media Post. For one thing, many investment portfolios have been on shaky ground since the great recession, and their nest (the house) is no longer their nest egg. Plus, a longer life expectancy means their retirement fund must now last twenty or thirty years or more… and few Boomers have set-aside enough money for that to happen.

Implications: It’s funny. (I can say this without offending anyone, because I am in the age group.) But back in the 40’s or 50’s, when people got deep into their sixties, the commonly held fear was, “Oh, my… what if I die!” Today, it is more like: “Oh, my… what if I live!?” (Will I outlive the money I have saved?)

What impact does this longer life expectancy have on the way a Boomer furnishes their home?
And that question is not reserved for people over 50. When today’s young adults find themselves marrying later, having children later, and living in a less nuclear household… what does the furniture look like? How has the dining room changed? IS there a dining room?

Generational changes happen over such a span of time that few of us note the impact those changes might have on our day-to-day business. But these are important questions to ask… regardless of the business you’re in.

Mike Anderson