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WASHINGTON As baby boomers look ahead to retirement, they'd prefer a home that is affordable, accessible to medical care and close to family. But an Associated Press-LifeGoesStrong.com poll finds that amid a shaky economy, few think it's likely they'll move in retirement.
Shelley Wernholm, a 47-year-old single mother of two who works for a health insurance company in Cleveland, said she wanted to retire and move to a new home by 60. But her pension was eliminated five years ago, her personal investments tanked during the recession and her home of 21 years has lost more than half of its value.
"I was hoping I'd be moving to a beach somewhere, anywhere, preferably a warm one," Wernholm said. "But I'm not moving. I can't. It's hard to remain optimistic."
The 77 million-strong generation born between 1946 and 1964 is increasingly worried about retirement and their finances amid the economic crisis of the past three years.
Just 9 percent say they are strongly convinced they'll be able to live comfortably in retirement.
Overall, about 6 in 10 baby boomers say their workplace retirement plans, personal investments or real estate lost value during the economic downturn. Of this group, 53 percent say they'll have to delay retirement because their nest eggs shrank.
Financial experts say those losses, including home prices that have dropped by a third nationwide over the past four years, have left boomers anxious about moving and selling their homes.
"There's a mistrust of the real estate market that we didn't have before," said Barbara Corcoran, a New York-based real estate consultant. "There's a concern about whether people will get money out of their house. They envision the home as a problem, not an asset, and this unshakable belief in homes as a tool for retirement has been shaken to the core."
Fifty-two percent of boomers say they are unlikely to move someplace new in retirement, unchanged from March. And 4 in 10 say they are very likely to stay in their current home throughout all of their retirement.
Older baby boomers are more apt to say they're already settled in for their golden years; 48 percent say it's extremely or very likely they'll stay in the home they live in now throughout their retirement, compared with 35 percent among younger boomers. The same is true of those who've lived in their current home for 20 or more years.
Midwestern and rural baby boomers also are more inclined to stay put.
Not surprisingly, higher-earning boomers who make more than $100,000 a year are more likely to buy a new home during retirement.
Why buy a new home? About 4 in 10 of those who say it's likely they'll buy a new home in retirement would prefer a smaller one. Other important considerations include being close to medical offices or hospitals (39 percent); a different, and perhaps warmer, climate (30 percent); a more affordable home (25 percent); and being closer to family (15 percent).
Just 8 percent of those surveyed are looking for a larger home and only 10 percent are searching for a city with more services.
John Fortune, a 60-year-old small business owner in Scotch Plains, N.J., outside Newark, said he'd ideally like to move in his retirement years. But he's unsure about the future and whether he'll have any money left over after putting three kids through college.
I don't expect to fully retire," said Fortune, who runs a business that sharpens knives, tools and other cutlery. "It just depends on what happens to the economy. I'd like to find someplace that is warmer and doesn't have the high taxes but we'll just have to see."
Read more: Poll: Many boomers staying put amid bad economy | US News | Idaho Statesman
Shelley Wernholm, a 47-year-old single mother of two who works for a health insurance company in Cleveland, said she wanted to retire and move to a new home by 60. But her pension was eliminated five years ago, her personal investments tanked during the recession and her home of 21 years has lost more than half of its value.
"I was hoping I'd be moving to a beach somewhere, anywhere, preferably a warm one," Wernholm said. "But I'm not moving. I can't. It's hard to remain optimistic."
The 77 million-strong generation born between 1946 and 1964 is increasingly worried about retirement and their finances amid the economic crisis of the past three years.
Just 9 percent say they are strongly convinced they'll be able to live comfortably in retirement.
Overall, about 6 in 10 baby boomers say their workplace retirement plans, personal investments or real estate lost value during the economic downturn. Of this group, 53 percent say they'll have to delay retirement because their nest eggs shrank.
Financial experts say those losses, including home prices that have dropped by a third nationwide over the past four years, have left boomers anxious about moving and selling their homes.
"There's a mistrust of the real estate market that we didn't have before," said Barbara Corcoran, a New York-based real estate consultant. "There's a concern about whether people will get money out of their house. They envision the home as a problem, not an asset, and this unshakable belief in homes as a tool for retirement has been shaken to the core."
Fifty-two percent of boomers say they are unlikely to move someplace new in retirement, unchanged from March. And 4 in 10 say they are very likely to stay in their current home throughout all of their retirement.
Older baby boomers are more apt to say they're already settled in for their golden years; 48 percent say it's extremely or very likely they'll stay in the home they live in now throughout their retirement, compared with 35 percent among younger boomers. The same is true of those who've lived in their current home for 20 or more years.
Midwestern and rural baby boomers also are more inclined to stay put.
Not surprisingly, higher-earning boomers who make more than $100,000 a year are more likely to buy a new home during retirement.
Why buy a new home? About 4 in 10 of those who say it's likely they'll buy a new home in retirement would prefer a smaller one. Other important considerations include being close to medical offices or hospitals (39 percent); a different, and perhaps warmer, climate (30 percent); a more affordable home (25 percent); and being closer to family (15 percent).
Just 8 percent of those surveyed are looking for a larger home and only 10 percent are searching for a city with more services.
John Fortune, a 60-year-old small business owner in Scotch Plains, N.J., outside Newark, said he'd ideally like to move in his retirement years. But he's unsure about the future and whether he'll have any money left over after putting three kids through college.
I don't expect to fully retire," said Fortune, who runs a business that sharpens knives, tools and other cutlery. "It just depends on what happens to the economy. I'd like to find someplace that is warmer and doesn't have the high taxes but we'll just have to see."
Read more: Poll: Many boomers staying put amid bad economy | US News | Idaho Statesman
