Retirement Snapshot 2020
Retirement is changing. The way we live our lives has fundamentally shifted. The stereotype of living out your golden years peering at your garden through rose-tinted spectacles and enjoying a quiet, secluded life is not something that can be expected for many of us anymore. 2020 was a year of upheaval and change. Retirement is showing different trends than previous years and the numbers make for a very interesting analysis.
Traditionally, folks tend to downsize as they get older. Their kids have moved out and started families of their own. This would generally mean a smaller house, or even condo with a lower upkeep cost and less money spent on the property overall.
It turns out that this seems to be more of a myth. A recent study found that half of retirees don't downsize.
30 percent actually “upsized,” purchasing an even larger home than before. Drilling down to find the reasons why revealed they want room for their families to come and stay.
The COVID-19 pandemic has also had a huge effect on living arrangements for younger folks. Many have moved back in with parents. In the future, we may see families sticking together under one larger roof for longer, pooling resources to survive the economic uncertainty we all face.
Getting as much value for dollars spent makes sense, especially if you only have a finite amount saved or invested and have no more income being generated once you have retired. Many Americans are looking abroad as an answer to their prayers. The percentage of Americans retiring abroad jumped 17 percent between 2010 and 2015. Over the last year, the number of people who claim their Social Security living in foreign countries increased by more than 10,000!
It’s not just the quiet countryside or fabulous foreign climes that attracts retirees.
Surprisingly, they are also moving to urban areas. Research shows that about one-third of all urban rental applications are for folks older than 60.
No matter where you retire this year, it is going to be challenging.
Whether it’s on a beach in Mexico sipping cocktails, or an urban jungle getting a piping hot coffee, or helping with your grandkid's in your big family house, it will be a year to remember. It's interesting to see how the concept of retirement has changed over this years and it will be even more enlightening to see how it shifts in the years to come.
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