Baby boomers drive demand in retirement sector
25th February, 2022
Widely perceived as industry agitators, baby boomers have the financial means and impetus to “disrupt” the real estate sector.
The boomers are shunning rationed care in favour of creating the retirement lifestyle of their dreams.
Research indicates that baby boomers present a massive demographic shift — with this next generation being the wealthiest and most demanding of their predecessors.
They will not be grateful to receive the standard ration-based service that many aged-care developments are offering.
With a median net worth of $206,700, the typical boomer of today is slightly wealthier than their counterparts 20 years ago, who had a median net worth of $205,200 in inflation-adjusted dollars.
How should retirement developers prepare?
Developers of retirement living and aged-care facilities need to accommodate three very different groups of users: the acceptors (current users); the disruptors (the baby boomers); and the expectors who would follow.
The expectations of baby boomers will assert their influence. The disruptors are flipping aged care in favour of home-based care services.
The market should capitalise on these needs and desires. Creating autonomous retirement lifestyles is the key. Inbuilt but inconspicuous aged-care amenity is a recommended lifecycle approach.
The leading retirement villages offer an air of exclusivity and independence that belies their inherent healthcare services. They are also well-located and accessible to vetted visitors.
One-move guarantee hits the right note
The “one-move-guarantee” is also creating a boom among boomers in the retiree space.
With many in their mid-to-late 70s set to downsize, a one-move proposition is an irresistible drawcard for the retirement sector.
As such, customisable properties are hitting the mark with the baby boomer generation.
Experts agree that baby boomers crave choice — they want to be able to choose everything in their house, according to taste, lifestyle and often without budgetary constraints.
Peer pressure and bragging rights of the boomers play to the market’s favour. That’s because they want to customise everything — from zip taps with sparkling water to fixtures and fittings.
Savvy developers are evolving to fulfil the customisable needs of the pick-and-choose baby boomer market.
For further information, contact retirement villages and developers in your region — and discuss future moves with your financial planner.
Source: The Real Estate Voice