The baby boomer generation makes up nearly 20% of the American population, ranging in ages from 53 to 71 in 2017. Baby boomers are ‘retiring in droves’ according to a recent Bloomberg article. In the fourth quarter of 2016, this generation had a marked increase in number of Americans 65+ that are no longer in the labor force. It is suggested that this accelerated retirement rate affirms that this generation is beginning their exodus into retirement. Some of the generation surely still looks forward to the golf and relaxation plan for their later years, while others are adjusting their work-life-retirement plans to include more meaningful work when nearing retirement age. Also, a delay in starting to receiving social security benefits could result in larger benefits.
It should be noted that some baby boomers have acquired higher mortgage debt through the years due to circumstances. A New York Times article, “They’re Growing Older. Their Mortgage Debt is Growing Deeper.”, touches on the issue that people with more mortgage debt tend to stay in the workforce longer than they may have originally planned. This also increases the possibility of more real estate inventory changeover in the coming years.