For the last few decades, Baby Boomers have been driving our economy and our property markets.
But interestingly, they’re not doing what everyone thought they were going to do.
They’re redefining retirement.
And this is going to have significant implications for our property markets and on our economy and businesses.
So, if you’re interested in property investment or if you’re a business owner, this is going to be an enlightening show.
I’m speaking with Simon Kuestenmacher, a leading demographer, about how baby boomers are redefining retirement, and what that means to you and to the property market.
Demographics have always been a major driving factor of our economy and our property markets.
And Baby Boomers have dictated many trends because there are so many more Baby Boomers than previous generations.
The last Baby Boomer will hit retirement age by 2029. But that doesn’t mean that they’ll all be retired. There’s been a big shift in terms of how people are defining retirement.
More and more people are staying in the workplace longer. Some are doing so because they find the work engaging and enjoy it.
We also see more and more people who are being forced to work longer. These are usually people in low-income jobs, which makes clear the crucial importance of lifelong retirement planning.
There are a number of different ways to plan financially for retirement.
Superannuation is one way.
Owning your home is another.
Investing in residential real estate or shares is one more way to plan for retirement.
There are four major tribes of Baby Boomers moving into retirement:
- The Lifestylists – People between 55-64 years of age who prep for retirement. They tend to slide into retirement, rather than jumping into it all at once.
- The Active Retirees – People between the ages of 65-74 who are still somewhat linked to work. They want to stay active and in the family home as long as possible. They only move when they are forced to.
- The Downsizers: They are 75-84 years of age. At this stage, they are slowly starting to prepare for old age. Physical problems force this group to slowly start to change their housing behavior.
- Old Age: They are 85 or older. Statistically speaking, they are quite likely to have lots of physical ailments. However, they still want to live as independently and as healthily as possible.
The workforce as a whole is shifting more and more toward knowledge work. At the same time more and more repetitive knowledge tasks are being taken over by computers. That leaves humans with the tasks of socializing and networking.
There are also lots more jobs in the low skilled and unskilled sectors. But no new middle-skill jobs. The workforce is being hollowed out.
Links and Resources:
Join us at my annual Property Market and Economic Update – come as my guest using the Coupon Code: PODCAST Click here for details
Some of our favourite quotes from the show:
“Middle ring suburbs are where we need more medium-density development, but it’s really hard to find the land or to make the economics work.” – Michael Yardney
“As always, baby boomers are going to be an important factor in our economy and in our property markets moving forward.” – Michael Yardney
“I really do think everyone’s doing the best they can.” – Michael Yardney
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