My Generation August 2010 - Keep Me Current

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6 By Melissa Wood Big money, big impact Boomer spending drives the economy of Maine Maybe at one time you thought you could hange the world, or at least wanted to try. erhaps as an idealistic adolescent you thought aybe you could do something to at least make difference, politically, socially or otherwise. But as a baby boomer, you already are changing the world. “Because they’re such a large part of the population on a national level, they really drive a lot of the national trends,” explained Amanda Rector, an economist specializing in demographics with the Maine State Planning Offi ce. In other words, as members of this generation go through the different stages of life, so goes the nation. “The baby boom population is so large that as they enter different life stages the economy changes to accommodate them,” according to a population outlook for 2013 to 2028 published by the Maine State Planning Offi ce. Just how much power does that mean? “They are such a large part of the population, if they decide to retire in one fell swoop, some industries would have to shut down for lack of workers,” said Rector. Thankfully that hasn’t happened, and whatever they decide to do next, there’s no question that currently boomers are at the height of their earning and spending power, a fact with farreaching effects on the rest of the economy. “Certainly they have higher earnings than other age cohorts and buy more things than other age cohorts,” said Rector. This holds true especially in Maine, where boomers make up 30 percent of the population, which means the state has the second highest percentage of boomers in the nation after Vermont, according to the State Planning Offi ce. Why are there so many boomers in Maine? Rector said the reasons vary, but include a number of older boomers who came to Maine’s summer camps or visited when they were younger and are now retiring here. At the same time, as the number of retirees is increasing, the number A few of the high-end, “distinctive” properties listed for sale in Maine by Town & Shore Real Estate in Portland. of younger people is decreasing because many of them are leaving the state to go to college and fi nd employment elsewhere. As a broker specializing in high-end, “distinctive” properties, Susan Lamb of Town & Shore Real Estate in Portland has helped clients in their 50s and 60s fi nd that dream retirement home in Maine. In the past couple years, however, she has seen fewer people coming to Maine. “I think, as far as spending goes, they’re probably more conservative than they’ve been in the past,” she said. “There are many more luxury homes on the market that might have been purchased if it were a different economy.” When they are ready to buy, Lamb has found low maintenance is a key selling point for baby boomers. “Most of them prefer to buy a home that does not need work,” she said. Glenna Irvine, a buyer broker with the Landry Team at Benchmark Residential & Investment Real Estate on Munjoy Hill in Portland, has seen a buying trend of second home purchases both by baby boomers from out of state and within the state. “From what we’re seeing, it’s not just people from out of state, it’s also people who live in Maine and want a second home closer to the city,” she said. Recent clients have included couples from York and northern Maine, who kept their fi rst homes but also bought places in downtown Portland. She said Portland’s East End has proved especially attractive to these second-home buyers, who appreciate its mix of homes and old neighborhood feeling while still being in the city. “It has a real down-to-earth feel,” said Irvine. “They want to be in the city, but they also want to have that closeness of a neighborhood.” Irvine says many baby boomers – including fi ve of her clients in the last three months – are buying condos in the city to be closer to their adult children. All of the fi ve are from Maine and tend to use the city as a hub where the whole family can gather. “It’s very, very common,” said Irvine. “I think we tend to have a little bit more of a connection to our kids.” Having those kids out of the house has also changed some of the boomers’ spending habits when it comes to their vehicles, too. Clyde Bartlett of Yankee Luxury Auto said baby boomers, who make up about 50 percent of his customer base, are mostly buying smaller SUVs and convertibles for driving around in the summer. “They’re graduating from their family vehicle,” said Bartlett. “Most of their kids have grown up and gone and now they’re able to buy that car they’ve wanted all their lives. They’re fi nally able to get that luxury they’ve been waiting for.” More than anything else, however, health care spending is expected to grow as boomers reach their retirement years. “Anecdotally, it’s safe to say that older people spend more money on health care and so that is one reason why health care spending is expected to grow strongly as the baby boomer generation ages and requires more,” said economist Joel Johnson, also with the Maine State Planning Offi ce. Other consequences include a change in revenue in both income and sales taxes. “Right now, baby boomers are in their peak earning years and at the top of pay ranges,” said Rector. This means that the state receives higher payroll and income taxes from boomers and will lose that revenue once they retire. “The other side of that is they’re at their peak earning years and they’re also buying more stuff, so the state gets more sales tax revenue,” said Rector. And boomers may not retire for a while. Many may choose to wait until they’re 75 instead of 65. It’s hard to tell because boomers don’t follow trends, they create them. And so, for example, once they do retire, they may decide to spend their retirement years working for a nonprofi t as a volunteer or starting up new businesses – instead of playing golf for the next 20 years. “The baby boomers have never really done anything conventionally,” said Rector. “Baby boomers tend not to follow the same pattern of behavior as previous generations in terms of working and thinking about retirement.”
AUGUST 2010 7 Luxury, not leisure High-end vacations: By Melissa Wood What’s your idea of a Maine luxury vacaion? It’s probably safe to say that manual abor isn’t the fi rst thought that comes to ind. Indeed, our state has its share of fi ne hoels and restaurants, island getaways and eautiful beaches where you can spend long, azy days lounging in the sun. But it turns ut that when baby boomers have some ime off and money to spend in Maine, any are seeking hands-on, learning expeiences – even if that experience includes ome labor – without completely letting go f luxury, either. “What I’m fi nding with baby boomers is that it’s all about the experience,” said Pamela Hurley-Moser, owner of Hurley Travel Experts in Portland. “They’re not just going to sit on a beach. They want to experience culture, though they want to be pampered while experiencing culture.” That is, active baby boomers want to make the most of their “leisure” time. “Luxury vacations in Maine may not be as glitzy as vacations in other parts of the world, but they tend to be more authentic,” said Hurley. “The authenticity makes it a sought-after experience.” Hurley-Moser doesn’t have to look far to fi nd one such example of an authentic Maine “luxury” vacation. Her husband, David Moser, is the principal designer for famed Maine furniture maker Thos. Moser, founded by his father, Tom Moser. The company offers a “Customer in Residence” program, where people come from all over (Continued on Page 8) Call Gloria Walker at 207-781-4460 for a personal tour. Eliminate the stress and expense of maintaining a big house and yard. Simplify your life and enhance your retirement with the active lifestyle of OceanView at Falmouth - a community for those 55 and better. We offer a wide variety of customized cottage homes and apartments in a peaceful country setting, just minutes from Portland, Maine’s largest city! Afford yourself the active, stress-free lifestyle you deserve today! 20 Blueberry Lane, Falmouth, ME 04105 www.oceanviewrc.com A national historic landmark, the American Eagle was built in Gloucester, Mass., in 1930. The American Eagle was the last fi shing schooner ever built in New England. Courtesy photo by Fred LeBlanc
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Page 3 and 4: PUBLISHER’S NOTE No question, boo
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Page 11 and 12: A dog’s life By Mike Higgins Let
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