Baby Boomers characteristics: Introduction
There are now some new Baby Boomers characteristics. Baby Boomers are now between the ages of 54 and 72. Their new characteristics are now defined by definitely not being a one-size-fits-all group. The broad range in their ages and stages has divided them on whether or not to downsize.
Baby Boomers characteristics: The issues
Baby Boomers are healthier and working longer than previous generations; as a result, they’re not ready to sell their homes and downsize or move into retirement facilities. Others may not want to sell and downsize because of the hot housing market. And there’s a significant generational change that is preventing Baby Boomers from downsizing – their kids haven’t moved out.
Baby Boomers characteristics: Some stats
Statistics Canada reports that just over 33% of young adults, aged 20 to 34, lived with their parents in 2016. In Ontario, the number was higher – 42.1%.
According to a survey by Royal LePage:
- 59% of Baby Boomers are renovating rather than moving
- 52% of Baby Boomers say they won’t be downsizing
- 18% of Baby Boomers said they didn’t expect their children to leave home before the age of 30
- 9% of Baby Boomers said they didn’t expect their children to leave before 35
- In Ontario, 50% of Baby Boomers would help their children buy a home
- 44% of Baby Boomers would be willing to contribute up to 25% of the cost of their child’s home
Baby Boomers characteristics: Baby Boomers not downsizing
Although economists expected Baby Boomers to downsize in large numbers, that just isn’t happening. With the relatively new phenomena of adult children living at home, Baby Boomers are making the decision to renovate instead of move.
Downsizing is increasingly shifting to their 80s when they can no longer care for their homes. Although it’s a generous thought to help your children buy a house, Baby Boomers really need to consider whether or not that makes good financial sense for them or can potentially jeopardize their retirement. In addition, helping your children purchase a house that they can’t afford may do more harm than good.
Baby Boomers characteristics: Some Baby Boomers need a financial plan
If you’re in a financial quandary because you’ve helped your adult children purchase a house, or if they now find themselves with a house they can’t afford, seek professional help immediately. Ira Smith Trustee & Receiver Inc. is a full-service practice serving people just like you throughout the Greater Toronto Area (GTA) who need a plan for Starting Over, Starting Now. Give us a call today. We can give you peace of mind and set you on a path to debt free living.
baby boomer characteristics