NEW YORK, Dec. 19 (Xinhua) -- As of this year there are 65 million Baby Boomers, defined as Americans born between 1946 and 1964, who account for 20 percent of the U.S. population and 36 percent of total homeowner households, a reminder of the spending power of the mighty post-war generation, according to a report released on Thursday by mortgage guarantor Freddie Mac.
"As they age -- and pass on -- the ensuing 'Silver Tsunami' is likely to bequeath what Freddie analysts are calling a 'Wave of Wealth' for their children and other heirs," said USA Today in its report about the data.
Boomers hold half of the nation's home equity, amounting to 17.3 trillion U.S. dollars, according to Federal Reserve data. In a survey Freddie conducted earlier this year, 75 percent of respondents said they plan to leave either their home or the proceeds of the sale of their home to their children or family. Only 9 percent intend to use their home equity to fund their retirement.
"Homeowners are far more likely to have confidence in a comfortable retirement than renters," noted the newspaper. Nearly 70 percent of respondents who own their home expressed confidence in having a "financially comfortable" retirement, versus only 42 percent of renters. Research released earlier this year by the Aspen Institute showed that renters have a median net worth of just 10,400 dollars compared to about 400,000 dollars for homeowners. ■