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According to the Center for Economic and Policy Research
(6/24/2008), “The decline in home values has reduced the
prospect of comfortable retirements for the majority of near
retirees…This extraordinary destruction of wealth will have
tremendous implications for millions of families as they
enter retirement…Coupled with a very low personal savings
rate, this means that many people will only have Social
Security and Medicare to rely on in their retirement."
One of the most effective steps Baby Boomers can take to
live better on a fixed income is to relocate to an area
where the cost of living is less. This can result in
dramatic savings without sacrificing their quality of life.
In fact, in many cases the quality of life significantly
improves.
It is expected that a large number of upcoming Baby Boomer
retirees will move to less expensive areas to stretch their
meager retirement income. Among the likely actions foreseen
are:
• For Boomers that have equity in their current homes, many
will invest their sales proceeds rather than purchase a new
home in a relocated area.
• More Boomers deciding – or forced - to rent rather than
purchase downsized accommodations.
• A good percentage of Boomers will relocate south of the
border to countries like Mexico and Costa Rica where a
comfortable lifestyle can be maintained on a low fixed
income.
Boomers will seek to avoid areas with high housing costs or
which are dependent upon expensive fuels for heating and
traveling. Inexpensive housing solutions, such as co-ops,
prefabricated homes and senior mobile home parks are
expected to benefit from this demographic migration.
About The Author
Al Kernek is a Internet marketing consultant, author and Baby Boomer. Learn more about issues facing Baby Boomers seeking to retire on a fixed income at www.BabyBoomerLifeboat.com which is also an online portal to Websites containing valuable information and resources for Baby Boomers.
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