An article in the Jan. 29th, 2009 Business & Technology section of the Ottawa Citizen by Derek Abma discusses the results of a survey that shows almost 1/2 of working Canadians intend to work a decade later than that and then some – refer to the online article at http://www.ottawacitizen.com/Life/Freedom+retirement+plans+thing+past+survey/1229299/story.html

The survey was conducted by Sun Life Financial.  The article doesn’t identify the actual name of the survey or the date of the survey but a quick Google search uncovered what appears to be related information from the Sun Life website.  An article there indicated a Sun Life Financial, Omnitel survey was conducted in January 2008.  Refer to the following link – http://www.sunlife.com/global/v/index.jsp?vgnextoid=c9012cb8ea29d110VgnVCM100000abd2d09fRCRD&vgnextchannel=331f2b6a1bc4c110VgnVCM1000009b80d09fRCRD&vgnLocale=en_CA

Reasons for the intention to work well beyond age 65:

• unsure about financial security to retire completely
• stay in the work force for positive reasons – enjoy their careers, staying active, interact with co-workers
• lifestyle reasons

The most recent decline in the stock market has had an obvious impact.  Despite the stock markets recent and quick decline, trends identified by the Conference Board of Canada indicated that retirement age was edging upwards before the market recent fall.

One factor affecting this is greater number of knowledge based jobs versus physical labour positions.  Other factors include the fact that that age isn’t as much of a barrier in today’s market, and employers are aware of the impending labour shortage due to baby boomers approaching retirement.  Some organizations are offering incentives to entice boomers to stay.

The article goes onto to present a view that retirement is an “artificial construct” created decades ago to make room for boomers entering the workforce and to sell financial planning products.  The article also identifies that older workers are looking for flexibility – they want less responsibility and want to continue to practice what they are great at.

Lane Smith – Lane@lifepast50.ca

This is a quick summary of an article from the Ottawa Citizen (dated Saturday, January 24, 2009) – from the Homes section of the Saturday Citizen newspaper – by Patrick Langston  – http://www.ottawacitizen.com/Homes/Boomers+move/1213593/story.html is the link to the on-line copy of the article.

The article begins by indicating that retiring baby boomers will transform the housing market and the momentum for housing alternatives is building.  The article closes by stating that we shouldn’t expect easy answers regarding boomers and the housing market …… the boomer generation “has never been big on predictability”.

I must say I was bit confused by the flow of the article and I’m still not clear on its key point …… the statistics are interesting and information about the housing trends gives me something to think about for my own situation.

I’ve summarized elements of the article below ——

The article highlights the following statistics:

• 3.7 million Canadian boomers are between the ages of 55 and 64 years of age (2006 Statistics Canada census)
• in less than 10 years this age group will make up 1 in 5 Canadians
• 28 % of Canadians polled in a 2006 Royal LePage survey said they intend to sell their homes as part of their retirement plan
• 37% of relocating boomers will want a smaller home (same Royal LePage survey)

It will take a while for all the boomers (those born between 1946 and 1965) to actually retire but the article says we can count on this: “The huge numbers will mean changes to how and where we live”.

The article goes on to say that changes (based upon the Ottawa housing market) have already started.  Local builders are building adult lifestyle communities of bungalow townhomes, sometimes including a central community centre.  Others are building condo apartment towers for what the write called “silver buyers” – some with more luxury features that are attracting boomers.

The article states “hordes of boomers will be scouting for new digs” when stability returns to the housing market which is now experiencing  temporary shrinkage in resale opportunities.

The article indicates that local developers are already thinking in these terms.  Condos and bungalows offer lower operating costs, less maintenance and are easier on aging joints.

In the Ottawa condo market the demand for smaller homes is fuelling price increases.  The article provides info from a CMHC senior market analyst saying that retirees and young professionals are the major buyers of condos and average house prices in Ottawa have increased 6% last year, condos jumped 8%.  This analyst also indicated this was the story in most major Canadian cities.

The article also discusses the fact that boomers are demanding amenities to complement their active lives.  Soaking tubs, space for hobbies, proximity to bike paths and fitness centres, and a well appointed kitchen are some of the amenities.  Boomers aren’t going to move far from these amenities.  Based on some US statistics, 9 out of 10 Americans over 60 were living in the same county where they lived 5 years earlier.  “Aging in place” is a term used and it seems to be human instinct.

The article goes on to speculate about resale bottlenecks and further urban sprawl – based upon the “aging in place” trend.  The article also indicates that there is no leading trend – only indicators about how retiring hordes will impact the housing market.  The article also speculates that Ottawa, with the large federal government employment base, may not be impacted by the “aging in place” phenomena.  Retiring public servants do jump back into the market as well paid consultants and some are heading home with gold-plated pensions in hand to inherit family properties.

Other industry surveys indicate that 65% of boomers plan to renovate (Home Depot information) and 22% (from the Royal LePage survey) will put money in recreational properties, while others will travel.

Lane Smith – Lane@lifepast50.ca