“There is a disconnect between Baby Boomers’ current financial status and where
they perceive themselves in retirement,” explains Richard Burns, President and
CEO of The NHP Foundation. The struggle here is the “wishful thinking” that
transfers onto greater possible consequences that impacts “throughout all areas
of the economy.” Discovery of this was surveyed by The NHP Foundation, a
nonprofit that assists in providing affordable housing in which they surveyed
1,000 non-retired Americans aged 50 and older.
Thirty-one percent of Americans in that age group haven’t even thought about
creating a retirement budget. Within having no retirement budget, a good 72%
did not account for “unforeseen health-related expenses.”
With all of this, the type of retirement lifestyle Boomers expect versus how poorly
they are preparing for retirement does not match which creates a disconnect, as
NHP says. The 70% that aspire for retirement, mentioned they are at least
confident they will experience what they aspire, while those 73% who are
planning to delay retirement, show that 63% are at least somewhat confident
they will be able to enjoy their retirement lifestyle.
In terms of having a mortgage, NHP took note citing data from the Consumer
Financial Protection Bureau that “older homeowners owe almost double on their
current mortgage that the same group did 10 years ago”. Sixty percent said that
affordability is the most essential housing aspect of retirement and 85% would
like to continue living in their current home.
In another disconnect, from the 66% who rent or have a mortgage, an alarming
76% have no retirement budget and or will rely on Social Security for at least half
of their monthly income. Eighty-three percent believe they will be able to age in
place while only 17% of those with no retirement budget or who expect to rely on
Social Security for at least half of their income think they will have to move. In all,
there is a serious mismatch between the “wishful thinking” wants versus what
Boomers are financially capable of getting.