Many Baby Boomers Have New Homes, Money on Their Minds; Annual Del Webb Survey Shows 50% Plan to Buy Retirement Homes, But Social Security and Health Care Costs Are Big Unknowns

Business Wire, June 7, 2005

BLOOMFIELD HILLS, Mich. -- Many members of the Baby Boomer generation(1) have new homes and money on their minds, as dreams of buying retirement homes mix with concerns about how to get enough dollars in their pockets to carry them through the golden years, according to the 2005 Del Webb Baby Boomer survey.

Among younger Boomers, ages 41-49, 59% of respondents plan to buy a new retirement home, while 50% of those older Boomers ages 50-59 intend to do likewise.

Given that there are an estimated 77.5 million Baby Boomers(2), and they are one of the wealthiest generations in American history, retirement home purchasing among active adult buyers over the next few decades is expected to be considerable.

At the same time, Baby Boomers indicated uncertainty over how much money they'll need to save for retirement and where it's going to come from. Just over half of all Baby Boomers surveyed (52% younger Boomers, 54% older Boomers) say they feel they have a solid understanding of the issues facing Social Security today, with 62% of Boomers ages 41-54 believing the system is "in crisis." A full 75% of the same 41-54 age group say they aren't planning to rely solely on Social Security for retirement, and 81% of respondents ages 55-69, many of whom currently draw benefits, say they, too, don't plan to count fully on Social Security.

"A lot of Boomers want new homes and a new lifestyle for retirement, but they may have to change a few things first," says Dave Schreiner, vice president of active adult business development for Pulte Homes (Del Webb is a brand of Pulte Homes). "They recognize they may have to save more money or start thinking harder about a semi-work, semi-retirement arrangement, which isn't a huge shift from what we're experiencing today. A large number of Del Webb residents are starting new businesses, getting retrained and staying connected to the workforce. They don't leave it entirely. That's one advantage of positioning our newer communities close to large metropolitan centers - that's where the jobs are."

Pulte Homes is the nation's largest developer of active adult communities. Reflecting a strong commitment to consumer research, including the annual Del Webb Baby Boomer survey, Pulte's Del Webb communities throughout the United States have evolved to meet the changing preferences of age 55 and older homebuyers. This year's study, conducted by Harris Interactive(R), was designed to understand Boomers' opinions about critical issues they face, including finances and the impact of possible changes to Social Security, real estate, retirement lifestyle and work habits.

Data for the survey was analyzed by various age subgroups to see if there were any key differences of opinion among Boomers ages 41-49; Boomers ages 50-59; and their predecessors ages 60-69. Data also was broken down according to those people expected to be most affected by any changes to Social Security (ages 41-54) and relatively unaffected (ages 55-69).

Highlights of the 2005 Del Webb Baby Boomer Survey

Real Estate

More than half of Boomers plan on buying a new home for retirement. About half of Boomers expect to move to another state at retirement, with many seeking a better community lifestyle.

--59% of younger Boomers (ages 41-49) and 50% of older Boomers (ages 50-59) indicate they plan to buy a new home for their retirement.

--Of Boomers willing to move at retirement, 66% of older Boomers indicate they would move for a better community lifestyle, and 54% would seek a warmer climate.

--Nearly half (47%) of all respondents (ages 41-69) who will move say staying within three hours of family would be an important consideration about where to relocate for retirement.

--Among those willing to move to a different state, the most-preferred states to move to for retirement, by age group, are: Ages 41-49, North Carolina (14%); ages 50-59 and 60-69, Florida (18% and 17%, respectively).

"There's a secret weapon in our business and it's called grandkids," Schreiner said. "For those people who have them, many want us to deliver the Del Webb lifestyle to where they currently live. Staying close to family and friends, and maintaining links to their community are important things to them. And there are plenty of these 'retire in place' people in markets like Denver, Cleveland and Detroit, which is where we plan to open new Del Webb communities later this year."

Social Security

Boomers most affected by potential changes in Social Security (ages 41-54) are more likely to believe they will need another source of income to finance their retirement, and are more likely to invest in private accounts.

--62% of Boomers ages 41-54 believe the program is in crisis, and 34% of this group expressed an interest in investing a portion of Social Security in a private account.

--Although 61% of non-retired Boomers ages 41-54 say they don't know what their monthly benefit will be at retirement, 75% of all respondents ages 41-54 say they do not plan to rely solely on Social Security benefits.