Rather than downsize, retiring boomers hope to stay put
If you read the headlines, just about every urban boomer is leaving the suburbs behind and moving into condos or lofts in a trendy downtown area.
Yet there's little evidence that most Canadians are actually that open to the idea of moving into a smaller residence as they grow older.
A majority of Canadians aged 50 and over – 83 per cent – said staying in their own homes and paying for home care is the most appealing option for them, accordsing to Royal Bank research.
Even then, while the majority of us want to ''age-in-place'', this doesn't necessarily mean that we expect to stay in the same house. Most people are attached less to a particular pile of bricks and mortar than to a local area – to a network of friends, services and familiar places.
Among those who were already retired, a decision to move out of their home was most often due to a change in their health – 66 per cent – rather than to cash in on their home equity or get closer to restaurants.
"Remaining in familiar surroundings – in a home of their own, in their current neighbourhood and close to family and friends – is definitely how Canadian Boomers wish to live when future health changes occur,” says RBC head of retirement and aging strategies Amalia Costa.
Then there's the emotional pain of scaling back. Many empty nesters find they lack the stomach or stamina to dismantle their lives. They'd rather hang on. They struggle with sorting through all those boxes in the basement, or dread listening to adult children who want to keep the house where they grew up.
And isn't always the financial bonanza they expect. With fewer square feet to heat, mow and pay property taxes on, many downsizers assume they'll slash their monthly expenses. But unless you're willing to move to a part of the country with a lower cost of living, the savings may prove fairly modest.
Do you plan on downsizing in the future or have you already made the move? How are things working out so far?
By Gordon Powers, MSN Money
Posted by: SP | Oct 28, 2021 10:23:44 AM
Downsize? HA. I've yet to have a chance to properly upsize!
I commute forever so my children can grow up in a small home far away from the schools that are surrounded by large homes... occupied by retiree's.
Word to the young
Forget ever retiring kids.
The boomers are going to have door to door homecare on the taxpayers dime as they live out their final years in large homes surrounding the schools.
The notion that the Babyboomers will sacrifice ANYTHING to provide for those that follow them is a dream of the delusionals.
There isn't a politician alive who'll touch Babyboomers perks or pensioners benefits so you'd just better suck it up or leave the country.
Prescription coverage for children? Forget it. Prescription coverage for retired boomers Guaranteed!
Securing jobs? paying for education? Forget it, the government won't afford it.
Bail out banks and financial institutions to save the wealthy pensioners pennies? First line of duty.
Canada got off lucky in 2008 because of good finances then. I'm not so sure that Canada will come off so lucky the next time the wolds banks collapse.
But don't worry. Pensioners who's PARENTS 'fought in the wars' will be protected from all harm.
On... your (and your little childrens)... dime.
Posted by: Al-Man | Oct 28, 2021 2:05:43 PM
Bitter about something are we?
Posted by: Ron J | Oct 28, 2021 2:31:41 PM
I have looked into downsizing, for the amount I can get for my home I would get a smaller condo with no back yard and hefty Condo Fees that would actually make a condo a more expensive proposition.
Then there are Real Estate Fees to Sell, Provincial Land Taxes, Bank Fees, Moving Fees, Lawyer Fees, etc. etc.!!!
Wow, I would have actually lost $20,000 in equity in paying out everything.
This is why people chose to stay where they are, there is not any benefit to move in cost savings or in increasing your quality of living.
Posted by: Bryan Jaskolka | Oct 28, 2021 6:25:04 PM
I read this story on some other site, and couldn't believe the number of commenters saying things like 'it's a nice dream, but most aren't capable of living on their own.' And they go on to say that because these folks are so 'incapable' of living alone, they end up breaking a hip (or worse) and are a bigger burden to the health care system than they would be if they had just accepted assisted living as an option. OR - the worse yet - they say that when they do (inevitably) living in assisted housing, they will complain about how horrible it is. I really don't know what's so bad about it. I think a lot of elderly people will be fully capable to live on their own, and if they want to, I'm all for it. We all have choices, why shouldn't these folks be able to make their own as well?
Posted by: liz | Oct 29, 2021 7:07:27 AM
How did we manage to raise such miserable self serving people ? By giving them too much of course and now they have a terrible sense of entitlement. You must work and save to gain this life style we baby boomers have earned.
Posted by: dj | Oct 31, 2021 2:42:20 AM
right on the money liz MY Pension i earned it NO government gave it to me. we did downsize sold in victoria moved to langley never looked back dont miss a thing there is just so much more to do over here. sp has do do a bit more research about the amount of money successive governments stole from pension plans in the last 30 years before before he starts yapping about entitlements.
Posted by: cam | Oct 31, 2021 8:50:12 AM
Liz and dj are right about sp - where did we miss teaching the young they have to put their time in - as did we - pinching pennies, doing without and saving up before you can build up enough equity for a house in the suburbs? Also, I've had compulsory pension payments taken from my pay for almost 35 yrs - that money was sorely missed when raising 2 children by myself. Now that I'm close to collecting the pension I've paid for, I have to listen to whining and complaining from someone who's never put a penny into my pension.
Ron J was right on the money as well - I've checked out downsizing and it would end up costing me more money for a smaller house with a postage sized back yard and no mature trees.
Posted by: Marie | Oct 31, 2021 10:50:32 AM
To SP: Just WHO the hell peed on your cornflakes???? I am a single mom who has suffered through three lay-offs in the past 13 years and live from pay cheque to pay cheque! I don't even have the luxury to THINK about being able to retire when I hit 65 in a few years because like many Canadians, I DON'T have any workplace pension. Don't blame the boomers for working their asses off just to be able to eek out a bit of comfort in their retirement if they can indeed retire at all! You and your children (along with many, many younger folks) have such a sense of entitlement and don't realize that MOST of the boomers have had to scrimp and save their OWN money for their retirement - they have not all relied on government handouts! I have had to sell my home and now rent from one of my children (totalling devasting and demoralizing!!!!!) ........... so you see, it's not exactly been a piece of cake for me along with thousands of others who have endured job lay-offs or termination.
Posted by: ken | Oct 31, 2021 10:50:47 AM
Liz; I totaly agree with what you say further more with inflation and poor intrest rates our self saved/adminitered pention is not performing like it should this pension was not subsidised by anyone but ourselves through hard work and persverance. The sniviling winning kids of today that have the benifit of low intrest rates dont have a clue how to save for the day when work is no longer an obtion. We payed our way without hand outs and dont expext to see any asistance from the self serving kids of the day. The hand to mouth attitude of todays generation will have dificulty in retirement years.
Posted by: JP | Oct 31, 2021 3:27:55 PM
It seems to me that some of us are prepared for retirement and some are not. Have you planned for it? Did you make provisions or plan for a lower income drop. Some did and some didn`t. I do not have a workplace pension- I worked all my life, paid off my home, lived within my means, saved and invested. I will be able to live comfortably in my own home and pay for the services I will require.
No one gave me anything-the whiners want our jobs, our homes and our lifestyle-well too bad for them-they want it ALL and NOW. I worked for them and had them when I could afford them! (Vacations, cars, toys etc....) Go and work for 45 years, raise your family, do what is right and you will have all that I have. When I bought my first home, the bank insisted on a down payment and the interest rate on my mortgage was 16%, not 4%-suck it people-nothing is free!
Posted by: Entitle This !! | Oct 31, 2021 4:12:17 PM
When my parents bought their first house in 1960 (at ages 39 & 36), they paid 16K. When my mom moved into a retirement home (15 yrs after my father passed away), we sold her house for 324K (after fees). OK... so that's a profit of 308K over 50 years. Whoo Hoo... must be rolling in the money right ? Well... she earned that right !! The new generation need to keep in mind that those 15-20K homes in the '60s were usually paid with ONE salary of less than 10K per year... plus a probable part-time job 5 nights a week. Many homeowners also had boarders renting a room in the basement @ $50. per month, which helped pay off the mortgage or put clothes on the kids' backs. Ohhh... and "maybe" ONE take-out supper treat per month. Yup... baby boomers had it soooo easy.
They didn't go into debt with bigger TVs, new I-Phones and new cars every 3-4 years. They didn;t splurge on caribbean vacations every year or two to relieve some self-created stress. They mostly paid with cash... NOT credit cards. They bought ONLY what they can afford.
The new generation need to learn to pay their dues... scrape and save for 10-15-20 years... go without new fashionable clothes... rent an apartment with 2 roomates for 10 years... and much more... before they believe they're "entitled" to their own house. Ohhh... and like the baby boomers, they also have to build a nest-egg, learn how to use a SAVINGS account and put money away for their retirement. MAYBE... just MAYBE they'll learn... someday instead of sitting at home on the internet whining about their sorry little lives.
Posted by: John | Nov 3, 2021 12:10:18 PM
Most of my friends have up-sized (in some cases to ridiculous levels) as they approach retirement and their children have moved out. Why? To show off? Good thing I don't "keep up with the Joneses".
Posted by: John | Nov 3, 2021 12:20:23 PM
@SP... don't blame your problems and mistakes on others.