What Will the Boomer Market Look Like?

The Baby Boomers are coming--and they're a completely new breed of retirees. They expect more from retirement than their parents did and, at 76 million strong, are not willing to settle for the cookie-cutter continuing care retirement communities (CCRCs) often found in generations past. They're experts at identifying and demanding what they want. And, with more than a trillion dollars in buying power, they have the financial muscle to pay for it.

Although this generation is not yet of age for most CCRCs, we're seeing glimpses of the behaviors and attitudes of this group in the "Silent Generation," the younger component of the generation we're now serving. This peek at the future through our experience with this transitional generation can help us prepare for the approaching Boomers.

Who are the Boomers? As a generational cohort, the Boomer group consists of men and women born between 1946 and 1964. They comprise one of the largest generational groups in history. Because of their impressive numbers, the Boomers are accustomed to being heard. As a group, self-confidence is one of their defining characteristics; they are not afraid to tell us what they want.

Boomers are also extremely consumer savvy. Having seen their own parents navigate the retirement maze, they know what communities generally have to offer and how to compare them. And, because most of them are paying for their retirement themselves, budgeting for retirement, estate planning and long-term care insurance are all-important issues.

One of the traditional obstacles in marketing retirement housing has been getting prospective residents to move out of the homes in which they've lived for their entire adult lives. With the Boomers, that often won't be the case. Many have moved several times in their lives and are less sentimental about their homes than their parents and grandparents. They've also redefined their attitudes about the homes they have. Why is there less sentimentality? As more women work outside the home, domestic responsibilities are less a part of "who they are." They are more likely to focus their energies on intellectual, spiritual or physical pursuits, and to hire someone for the "must do's." With this orientation toward lifestyle, they realize the benefits of retirement living and accept the concept more readily than their parents did.

So what does all this mean for your retirement community?

If you expect to appeal to the next generation of retirees, you're going to have to cater to their definition of "retirement," a complex definition that might vary widely by individual.

The first step in attracting the Boomers is to toss out all preconceptions about retirement living-from the types of housing and dining services you're familiar with to the payment options being offered. The major recurring theme for the new retirees is "choice." The most successful communities will appeal to a variety of residents with a wide range of options that can be easily adapted to their specific and changing needs.

If yours is a lifecare community, consider incorporating home health services into your agreement. This offers another option for those who might be attracted to the lifestyle your community offers but who might not want to move to assisted living if and when they develop support needs.

The most radical departure from the past will be in community design and housing. The "one big building" concept is likely to give way to a more campus-oriented environment, with activity-specific buildings, similar to a small village. Famed developer Del Webb has successfully used this approach in his Sun City communities. One of the key components of such a design, when one moves from the active adult arena to a continuing care retirement community environment, is ease of transportation for residents.

Even though residents might prefer a campus to one large building, they must be able to continue to participate in activities as they age. This infrastructure must be part of the initial planning, not addressed as an afterthought.

The types of homes are also changing. While stacked apartments remain more economically rewarding from the builder's perspective, many upscale Boomers want a more spacious and separate living atmosphere. As more individuals choose to move into CCRCs younger and healthier, they are demanding many of the same features found in their previous homes. CCRC campuses should plan to add or include small, residential living communities that feature spacious town homes, some with two stories. They should be easily customizable and feature high ceilings, large bay windows, basements, fireplaces, second-story decks) French doors and many other design options.

Retirees love to dine out--and Boomers will definitely be no exception. They have more discretionary income and want dining to be a social experience, not just simply a meal. Again, flexibility is key in meeting the dining services needs of this new group. For example, they're used to "ordering in," so the ability to have restaurant-quality food delivered to the home will become increasingly popular with CCRCs.

While handling their own domestic chores was important to previous generations, their children and grandchildren don't necessarily agree. There are too many other things the new retiree would rather do. Provision of weekly housekeeping and other domestic services appeals to members of this generation, because it can free them up for more enriching activities and personal development. Surveys show that many Boomers see retirement as the chance to try things they've never done before.

Far more involved in their own financial management than their parents' generation, Boomers will want a choice of payment options that best suits their estate planning needs. For those communities offering a single refund option with their contract, the time has come to develop more choices for prospective residents.

The Baby Boomers are one of the fastest-growing segments of the online population; computer technology is a part of their everyday life. Computer instruction, e-mail access at a central location and wireless Internet connections as standard items are some of the ways retirement communities can create technology friendly environments that attract the computer-age retiree.

As an example of preparation for this new retiree, Willow Valley Retirement Communities in Lancaster, Penn., established a community-specific Intranet where residents can access up-to-the-minute information on community events, programs and activities, as well as phone directories, dining menus and entertainment guides. E-mail allows them to communicate both with staff and with one another.

Having grown up knowing the importance of good nutrition and the benefits of exercise, Boomers will be the healthiest retirees to date. They'll look for communities that include fitness and health-related activities as a key part of the program, instead of simply puffing a few exercise machines in a room. One way Willow Valley rewards residents who participate regularly in a community-sponsored wellness program is to provide additional hours of home healthcare. Boomers like this feature because it puts them in control and rewards those who demonstrate a commitment to good health.

Communities that Want to attract this vast new market will have to totally revamp their marketing programs. All of today's "innovations" won't make a bit of difference if they send out a tired message that doesn't relate to Boomers. Since most Boomers are aware of the advantages of retirement communities, it's more a matter of choosing the right one rather than selling them on the concept of retirement living. The best campaigns will show what differentiates one community from another, rather than painting an outdated picture about retirement in general.

The Baby Boomers have redefined the norms of society at every stage of their lives, and their retirement will be no exception. The most successful communities will provide an environment and lifestyle that meet the needs of this enormous and vital segment of our population.

Kim Miller is vice-president of marketing and sales, Willow Valley Retirement Communities, Lancaster, Pennsylvania.