BOOMERS' NEW RETIREMENT PROBLEM
The recent Newsweek e-magazine article Boomers Have a New Retirement Problem tells us that both the "Boomers" and younger generations have a big problem: the "Baby Boomers" – post-WW2 people born from 1946 through 1964 – have lived through a peak in the U.S. economy and many have bought big houses with 3 or 4 bedrooms, a 2-car garage, nice landscaping, etc. Their home equity has increased tremendously, often over half a million dollars. But now they're "empty nesters" – their children are grown up, have children of their own, and maybe even grandkids. So what's the problem?
As the above article states, "But now, thanks to ... unfavorable conditions in the U.S. housing market, boomers face a new retirement problem: affordable and accessible homes in which to age. As a result, boomers are now 'aging in place' in their current homes – a trend likely to induce a knock-on effect for younger generations." What are these "unfavorable conditions" and the "knock-on effect"?
First, property taxes: as the (inflation-induced) dollar value of their homes has increased, so have their property taxes. And these Boomers are living on fixed incomes – a retired couple's median income is around $65,000, so property taxes and likely remaining mortgage payments can take a huge chunk of that.
The second problem is that many are 'aging in place' – two people rattling around using only a fraction of the living space, having to care for the lawn, the maintenance, etc. – simply because there isn't enough accessible housing on the market today.
Third, the younger generation is facing a "knock-on effect" because the Boomers often can't sell their houses due to a lack of accessible housing for the elderly, creating a shortage of available houses for younger families, which drives up prices along with higher interest rates and higher property taxes. What must be done about this catch-22 dilemma?
We've been carefully developing plans for accessible housing, both for retirees who often have mobility issues, and for young families who should be investing in their own homes instead of paying rent but can't afford to buy one. Also, there are many families with a child or adult who has a mobility issue and needs accessible housing. It's very expensive or flat-out impossible to retrofit an existing house with a ramp to all floors or an elevator: this is something that should be incorporated into the design of homes when they're first being built.
The cost for a ramp and/or an elevator can be shared among all families who live in a multiple-living-unit building, as well as sharing the cost for land, parking, outside walls, plumbing, roof, and maintenance. There should be a combination of one-bedroom, two-bedroom, and three-bedroom living units in order to accomodate singles, young married couples, larger families, and retired people. And most of all, they should have a common space for community gatherings including worship. Our 12-to-14-living-unit "ARC" (Agape Restoration Community) plans have been designed to meet all these requirements at a very reasonable cost.
It's also very important to include able-bodied people of all age groups in these ARCs to check in with those residents who might need help. The fast-growing number of Boomers is about to overwhelm the government-provided services such as Social Security, Medicare, and Medicaid, which are strained to the limits right now and are projected to be insolvent in just a few years.
You may feel when you're a young adult that it's too far in the future to begin thinking about such matters: it's hard enough getting started in adult life, so here's an idea that will give you a jumpstart: see "The Magic of Compound Interest." Don't rent! Start out small by buying a one-bedroom home in an ARC, or a "fixer-upper" or pre-fab two-bedroom home for $30,000 (yes, they're available!). Pay it off in six years and move up, do it again, and semi-retire when you're 40!
And when you're an older adult, you need to begin right away thinking about what happens as you age. The "young old" who are "empty-nesters" in their 50s and 60s can become trained in home healthcare through our one-year online "Social Ministry of the Church" program. It takes just a couple of hours per week to prepare for this oncoming "grey tsunami." And you need to get into accessible housing before your 70s: most older people will experience a few years of disability before they pass away. My wife and I moved into a second-floor condo when I was 70, but climbing 14 steps became too much for us, so when I was 80 we moved into a first-floor condo with no stairs, not even one step up into the building. I definitely do not recommend moving like this when you're 80! It took a big toll on our health. You can likely help care for others in your 50s and 60s, but later you likely won't be able to, so get prepared!
These three stages of adult life can all be combined in our ARC plans, where we can all live together in a Christian community and build each other up in the faith and physical well-being. To get our *free* series of 24 articles that explain the "why" and "how" of this whole process, please subscribe here: www.Agape-Restoration-Society.org/ARC/ – thanks in advance!
You can read this article in our newsletter at https://agape-restoration-society.org/ARC-News/a-n_2024-12-14.htm, and share it!
