What do Baby Boomers consider a luxury
? A new survey from MainStay Investments
takes a look at the spending
habits and mindset of those aged 45 to 65 that are not yet retired
. While many Baby Boomers (76 percent) are willing to spend less now to invest for a more comfortable lifestyle
in the future, they have redefined what is a basic need versus what is a luxury. According to the survey, the majority of Baby Boomers believe that healthcare
coverage, internet connection, shopping
for birthdays and special occasions, and pet care are basic needs. That doesn't sound too extravagant but half of those surveyed consider annual family vacation
or weekend getaways
, having eldercare/home
aid, professional hair cut/color and funding children
/grandchildren's education to also be basic needs. The Boomers are willing to work for this lifestyle, forty percent of those survey said they will have to delay retirement in order to have the lifestyle they want. Traveling and dining out topped the list of things that people would find most difficult to give up.
Although most people are concerned about healthcare costs many are not saving specifically for healthcare down the road. More than half of the consumers indicated they would rather work longer to pay for healthcare expenses, rather than give up luxuries in retirement.
The survey was conducted online by Harris Interactive last May and included over 1,000 consumers aged 45-65 with a total of $100,000 or more of investable liquid assets who are employed and either a sole or shared financial decision maker.
"An interesting pattern that we noticed throughout the research was that as consumers age, things that were once considered luxuries are more likely to be considered basic needs--thereby reaffirming that Boomers essentially want it all," said Matthew Leung, director and head of practice management programs at MainStay Investments. "In fact, almost half of consumers (47 percent) say they would downsize their home in retirement in order to afford these luxuries."