Retirement: Spoilt by the boom

By Andrea Watson
Posted: 2010/05/07

Oh dear... the baby boom generation, to which I belong, are a selfish, irresponsible and wasteful lot.

They enjoy huge pensions at the expense of everyone working and are all ski junkies and squander their children's inheritances on cruises, second homes and the like. Now a new book by Conservative David Willetts, The Pinch, argues that we have stolen our children's future and should give it back. 

Whether or not you agree with Mr Willetts, there's no denying the young are forced to stay at home much longer thanks to soaring house prices. The average age of first-time buyers is over 35.

If shared equity schemes, not popular with mortgage lenders, dry up in the next few years, downsizing may be the only way to help your children get on the first rung of the property ladder and out of your house.

The good news is that, spoiled as we are, baby boomers have a vast choice when it comes to housing in later life. The last decade has seen huge changes in the quality and style of homes for those of retiring age.

We've moved from rather depressing old people's homes via safe and secure retirement complexes to fun-packed age-exclusive communities where lifestyle, fitness and a vibrant social schedule are part of the package. 

You don't even have to have reached 60 - many such places now cater to the 55-plus age group, who are lucky enough to have been able to retire early or work part-time.  

So what are the big questions to ask before deciding where to buy? Location, money, health and welfare, security and space are probably the most important, although many other considerations may be added to the list - such as whether you can keep a pet.  

Keith Edgar, managing director of Peverel Retirement, said: "This can be the last home people buy so they tend to let their hearts rule their heads. But buying a retirement home should not be an emotional decision."

Location comes at the top of the list because it makes sense to stay close to family and friends. Other points to consider will depend on your age and interests. Is the location quiet, or possibly too quiet and therefore cut-off? Is there a nearby shop, post office and hospital or health centre? What about transport connections in case you stop driving?  

McCarthy & Stone builds around 1,500 apartments a year and is the UK's number one retirement home provider. Its apartments are almost always on a level, close to shops and have gardens, residents' lounge, guest suites, a house manager and Careline for residents.

But the firm's autonomy in the market is being challenged by other developers. There is a new breed of very upmarket developers like Beechcroft and English Courtyard - with prices to match - as well as others such as the Retirement Villages group, which builds age-exclusive communities based on American or Australian lines with shops, health centres, restaurants, gyms, IT and a range of care packages. 

All these extras do come at a price, so if you are downsizing to release equity you will need to budget carefully. Retirement properties tend to be leasehold and buyers will have to pay service fees which cover everything from building insurance to  cleaning communal areas and gardening, as well as the house manager. 

Service charges can look high but so are the costs of maintaining a private home. Take professional advice before you sign any contract and check for restrictions in your lease on selling - for example, will you be obliged to sell only to someone aged over 55?

Space is a big issue. After a lifetime of moving up the property ladder converting lofts and building annexes, downsizers are faced with moving into a home with nowhere to put their possessions.

But there's one space that people regret losing most of all - the garden. According to Retirement Homesearch, gardens top the list of things we can't live without. Garden sheds are also pretty high on the list. And we do like a spare bedroom and garage… and being beside the sea. Oh, we are just so spoiled.   

Information: Age Concern publishes a guide to buying a retirement home. See www.ageconcern.co.uk