Posts Tagged ‘baby boomer’

Millennials are saving more for retirement

Posted on November 10, 2017 by Laura Lam

In the race to save for retirement, one group is doing surprisingly well: millennial parents.  That’s according to a new NerdWallet survey, which found that 38% of millennial parents (ages 18-34) save more than 15% of their income for retirement. All told, millennial parents reported a median retirement savings rate of 10% of income, compared with 8% for Generation X parents (ages 35-54) and just 5% for baby boomer parents (ages 55+). Given the picture typically painted of this age group, you might be shouting “fake news” right now. There’s one caveat: The results include only those currently saving for…

Boomers Struggle to Pay Off Mortgages Before Retirement

Posted on October 17, 2017 by Laura Lam

While outright homeownership increased among Baby Boomers after the last recession, they still lag previous generations, and may never catch up, according to the Fannie Mae Economic and Strategic Research Group’s latest Housing Insight Series.  Older generations such as Baby Boomers have criticized Millennials for waiting longer than their generation to buy a home, however even Boomers are failing to keep up with the pace set by the generation before them. Baby Boomers are much less likely to own their home outright than the generations before them and may struggle to catch up before reaching retirement age.  According to the report, “The leading…

Meet the Next Generation of Homebuyers: Gen Z

Posted on October 13, 2017 by Laura Lam

In its most recent study, Zillow Group examined the newest generation to enter the housing market – Generation Z.  Generation Z is considered to be those born from 1995 to 2010, meaning the oldest in the generation are now 22 years old.  The Zillow Group Report on Consumer and Housing Trends 2017 shows this new generation now makes up more than 21% of the U.S. population, and is the most ethnically and racially diverse generation in our history. They are beginning to enter the housing market – as renters. However, this generation is just as likely as older generations to…

Senior Home Equity Hits All-Time High

Posted on August 03, 2017 by Laura Lam

Senior homeowners saw an increase in their home equity in the first quarter of 2017, according to a report from the National Reverse Mortgage Lenders Association (NRMLA).  The report showed homeowners aged 62 and older saw their home equity increase by 3.1% to $6.3 trillion in the first quarter. This is up from $6.13 trillion from the fourth quarter. This growth in housing wealth for seniors was driven by an estimated 2.6%, or $199.3 billion, increase in senior home values, and was offset by a 0.6% increase in senior-held mortgage debt which totaled $9.2 billion. The NRMLA/RiskSpan Reverse Mortgage Market Index, a…

Retirees Will Influence Future Consumer Spending

Posted on March 15, 2017 by Laura Lam

Major demographic shifts over the next decade will have a dramatic affect on U.S. consumer spending – which in turn will influence the overall economy, specific industry sectors and individual stocks, according to a new report.  Population growth will be uneven, favoring the South and West as retirees migrate to the Sunbelt in search of warm climates and lower taxes.  This shift in population could affect public sector spending and municipal bond markets. The Conference Board report, “The Impact of Demographic Trends on Consumer Spending,” examines the size and age distribution of the future population, how spending patterns will change…

The Richest Generation Keeps Getting Richer

Posted on August 31, 2016 by Laura Lam

Baby boomers started turning 65 in 2011, marking the unofficial beginning of their retirement years. The timing could not have been better for older boomers, who are already part of the wealthiest generation in U.S. history. Since then, the broad S&P 500-stock index is up 91%. Market performance in the early years of retirement is a crucial worry for anyone living off a nest egg. In the worst-case scenario, stocks crash just as retirees start spending their savings, leaving them in a hole they can no longer earn their way out of.  But older boomers have experienced what is arguably the best-case…

The Link Between Education and Homeownership

Posted on June 10, 2016 by Laura Lam

A new report from First American Financial Corp. has found that the difference in homeownership between those without high school degrees and those with a bachelor’s degree or more is widening. In 2015, that gap was 28%, nearly twice the 15% gap reported in 1990. “People with higher education levels are more likely to earn higher incomes, and thus more likely to own homes,” said First American chief economist Mark Fleming.  “The good news is that educational attainment levels are improving nationally, so we are on the right track.” Education levels are rising as more millennials are graduating from college…

Multifamily Outlook: Rent Growth to Remain High

Posted on June 09, 2016 by Laura Lam

A new national market outlook from Yardi® Matrix forecasts that jobs and population growth will spur rent growth of about 5% in 2016.  The report, “Multifamily Votes for ‘More of the Same,’” predicts that long-term demographic forces in population growth, employment and demographic trends bode well for continued rent growth. The report predicts growth in 2016 will trail the 6.3% rate recorded in 2015 due to such factors as stock market volatility, depressed oil prices and weak economic growth outside the U.S. The capital markets could also be a factor, with a record total volume of multifamily debt. Yardi Matrix…

No Rest for the Weary: More Americans Working Past 65

Posted on June 03, 2016 by Laura Lam

Almost 20% of Americans 65 and older are now working, according to the latest data from the U.S. Bureau of Labor Statistics. That’s the highest number of older people with a job since the early 1960s.  When asked to describe their plans for retirement, 27% said they will “keep working as long as possible,” a 2015 Federal Reserve study found. Another 12% said they don’t plan to retire at all.  Why are more people putting off retirement?  A recent Bloomberg article reveals 5 possible reasons. They need the money.  3 in 5 retirees surveyed by the Transamerica Center for Retirement Studies said making money…