Baby Boomers are once again challenging the status quo and are doing things their own way. Unlike previous generations, Boomers are refusing to retire and downsize either their homes or lifestyles. Believe it or not, this generation is still making headlines as they refinance instead of sell their single-family homes and are still the group most likely to purchase and finance a second home loan in today’s market.
More than just vacation homes, these second homes are becoming major elements of their retirement plans. The perfect destinations for today’s weekend and family getaways are tomorrow’s retirement estates.
Leading the way in the new frontier of retirement planning for Boomer second homes are Colorado and New Mexico. Offering everything from outdoor living to New Age therapy, vacation and retirement retreats in Colorado and New Mexico are becoming the must-have accessories for those preparing for an active retirement lifestyle.
The communities in these states are welcoming those riding the front of the Silver Tsunami with open arms as they bring with them an unexpected financial wave of good fortune. In fact, the Boomer population in Colorado alone is expected to more than double in size by the year 2030.
This almost nonstop influx of retirement planners is impacting everything from tax revenues to transportation, as cities, towns and communities begin to prepare for the aging population who won’t be able to drive any longer but who are still choosing to live in the suburbs after retirement. Some of the characteristics of these new dual vacation/retirement communities, such as wider sidewalks designed for wheelchair accessibility, can be easily seen. Other elements, such as snowbird programs in which resident seniors can move between sister communities based on seasonality, are more subtle and are part of what makes this new trend in housing so unique.
The vacation/retirement community is gaining in popularity partially due the ability to provide independence to Boomers, allowing them the freedom to remain on their own and live in their own single-family home well past the age of 70.
The eight counties of the Denver, Colorado, area house 47 percent of Colorado’s Boomer community. In fact, the 65-plus population in this area grew at a rate of 32 percent as compared to the growth rate in the rest of the state, which was a mere 17 percent.
Nationally, the Boomers are aging at a rate of more than 10,000 per day turning the ripe age of 65. Though most in this generation do not retire before age 70, it is estimated that approximately 1 million workers, or 37 percent of the workforce, will officially age out of the labor force over the next 20 years.
To prepare for the incoming wave of retiring Boomers, state planners in Colorado, New Mexico, Hawaii, Texas and Minnesota have begun the process of strategic planning for the aging population.