The “Baby Boom” generation, born between 1946-1964, is undoubtedly one of the largest age groups of our nation and consequently greatly influenced our economy and culture. As marketers research this consumer segment, they must take maturing investments and spending habit changes into account. These are the 3 trends that we will see over the next 5 years.
Previous generations have stopped working at retirement; this is not true of the baby boomers. Roughly 65% of Boomers plan on working past the age of 65. A study by Voya Financial noted that 60% of retirees were forced to end their careers earlier than planned, due to layoffs and health concerns, and then found that their savings were not as sustainable as expected and needed to find additional income. Taking this time to ensure ends meet results in less free time for leisurely activities and travel.
Changes in purchasing habits
With continuing to work comes the need for professional attire and reliable transportation. Along with that, more and more time and money is being spent online. Medical care, security, entertainment options, obtaining and maintaining pets and community activities are all varying factors taken into consideration. Medical care in general is a huge budget item as Boomer’s rely heavily on both traditional and innovative medical technology and healthcare support.
Skew even more female
With the life expectancy of women exceeding that of men, a greater and growing percentage of this generation will be women. Products mostly bought by men won’t have the same consumption rate as before, so items like golf gear and men’s grooming tools will not be in high demand. Respectively, women’s products will increase.
We see major changes ahead as our country’s infrastructure stains to supply housing, medical care and entertainment for the oldest members of our society.
The “baby boomer” generation will be the fastest-growing age group in the workforce next year. In 2018 almost 20% of Americans over the age of 65 were employed or actively looking for work according to the U.S. Bureau of Labor Statistics (BLS). This is considerably up from less than 12% twenty years ago. The youngest of this generation, born in 1964, turned or will turn 55 this year.
With science and medicine making longer lives possible, people are more eager to continue to learn and make productive use of their time. For most, contributing to society means continuing to work. Additionally, the aging population is finding that pensions may not be sufficient sources of income to sustain the rest of their life. With a longer and healthier life expectancy comes needing retirement funds to last that much longer.
The World Health Organization has flagged workplace ageism as an ongoing issue, saying “employers often have negative attitudes towards older workers… even though older workers are not necessarily less healthy, less educated, less skillful or productive than their younger counterparts.” A survey was conducted this past year by The Associated Press-NORC Center for Public Affairs Research, finding that 1 in 3 Americans under the age of 50 felt the aging workforce had negative implications for their own careers.
Contrary to this however, a study from Stanford’s Institute for Economic Policy Research analyzed data from 1977-2011 to conclude that younger workers opportunities were in no way diminished by older workers presence in the workforce. The data researched actually suggested that the exact opposite was true!
As we enter the digital age, seniors are finding it easier to meet their security, safety, and comfort needs with smart home technology.
Home assistance devices such as Google Home or Amazon Alexa offer user friendly voice controls that are much simpler than navigating a complex app. With simple commands users can operate security, lighting, climate control, entertainment and privacy. This proves very helpful when dealing with limited mobility or poor vision.
Smart devices can also help older adults manage things like their medications and connect with community services, as well as stay in touch with family and friends. Family and caregivers are now able to save time and money with everyday tasks such as grocery delivery and transportation.
Safety is the number one concern in your home. Technology is available for automatic doors with security features, automatically adjusting counter-tops, motion or voice-activated faucets for water temperature control. Other accommodations and features include
- Slip-fall detection and medical alert monitors
- Adjustable sit-to-stand toilets
- Controlled light systems & controlled blinds
- Water filtration systems and leak sensors
- Temperature sensors that can be precursors to house fires
- Smart shower systems
- Smart thermostats
If someone were to grant you power of attorney in regard to their finances, belongings and property, is that enough to allow you to conduct real estate transactions on their behalf? Actually, it’s a question that we hear quite often.
In such cases, the person who gives power to another individual is call a “principal.” And, the principal can assign various levels of power of attorney to his or her “agent,” thus allowing the agent to legally act on the principal’s behalf.
According to LegalZoom.com, power of attorney can be classified as limited or general. Limited power of attorney will allow an individual appointed by the principal to conduct specific transactions, such as the sale of a home. General power of attorney grants the agent much broader authority, allowing him or her to do anything the principal can do.
Additionally, powers of attorney can be classified as durable or nondurable. In simple terms, a durable power of attorney remains in effect should the principal become incapacitated due to failing health, while a nondurable power of attorney is terminated when and if the principal becomes incapacitated.
No matter what label the power of attorney carries, the agent must always act in the best interest of the principal. For example, the agent cannot legally sell property to himself for far under market value if that’s not in the principal’s best interests.
Like all legal matters, it is best to seek the advice of an attorney and/or a trusted Realtor, especially in situations that involve the sale of property.
In the real estate profession, the words “estate executor” come up rather often during conversations with homeowners, attorneys, financial experts and other industry professionals. Then again, there are many individuals who probably have no idea about the important role played by an estate executor who is left to oversee the property and belongings of a deceased friend or family member.
So what does an executor do? Recently, we came across an article on FindLaw.com that went into great detail on this subject. Following is a summary of some of the more important points we highlighted and now wish to share.
- In simple terms, the executor oversees disposition of property and possessions. It’s a large responsibility making sure that a person’s last wishes are granted. The executor is responsible for making sure that any debts and creditors that the deceased had are paid off, and that any remaining money or property is distributed according to their wishes.
- While an executor does not have to be a lawyer or a financial expert, the law does require an executor to fulfill his or her duties with the utmost honesty and diligence. The legal term for this is “fiduciary duty.”
- An executor is not entitled to proceeds from the sale of property of the estate, but is often entitled to a fee as compensation for administering the will. Most states mandate that this fee be reasonable given the size or complexity of the will.
- There are many duties that an executor of a will may have to fulfill. These duties could include finding the deceased person’s assets and keeping them safe until they can be properly distributed, deciding if probating the last will and testament in court is necessary, finding and contacting people that were named in a will who are supposed to inherit money or property, making sure the will is filed in the appropriate probate court and wrapping up the deceased’s affairs.
- Other responsibilities may include setting up a bank account for the estate, continuing all necessary payments, paying off debts and creditors, paying final income taxes and ensuring the property distribution of the deceased’s property.
While serving as an executor is not an easy task, it is an honorable endeavor that should be completed to the very best of your ability.