‘Baby boomers and housing inheritance’ A research thesis towards completion of M.A. (Applied) Social Science Research Bill Murdoch Victoria University of Wellington 2008

‘Baby boomers and housing inheritance’ Two inter-related factors:  Structural ageing of society.  Home ownership. The research explores how these factors are associated with baby boomers and wealth transference from housing inheritance.

‘Baby boomers and housing inheritance’ Projected population by age group base

‘Baby boomers and housing inheritance’ Unadjusted Home Ownership Rates Age Group & over Total Source: DTZ New Zealand - Statistics New Zealand (2007)

‘Baby boomers and housing inheritance’

Research question: What are the socio-economic implications of housing inheritance for the baby boomer generation? Research aim: To understand the attitudes and expectations of New Zealanders, aged between 41 and 61 years, towards housing inheritance.

‘Baby boomers and housing inheritance’ Research objectives:  To explore whether housing inheritance contributes to class divisions in society.  To ascertain if the expectation of receiving a housing inheritance affects a person’s financial behaviour with respect to their own retirement planning.  To ascertain whether there is a ‘generational contract’ between baby boomers and their parents relating to the provision of care and housing inheritance.  To understand baby boomers’ attitude towards the use of equity accrued in the family home.  To understand baby boomers’ attitude regarding intergenerational transfers to their own children.

‘Baby boomers and housing inheritance’ Theoretical orientation:  Constructionism.  Critical inquiry. Used to explore the meaning of home ownership and housing inheritance. Research methodology:  Structure and agency - Giddens and Bourdieu. Used to examine the significance of the relationship between institutional structures and individual agency.  Focus groups. Method of data collection.

‘Baby boomers and housing inheritance’ Method - focus groups:  Male and female.  New Zealand Europeans.  41 to 61 years.  Snowball sampling.  Upper Hutt, Porirua, Wellington City.  August and September 2007.

‘Baby boomers and housing inheritance’ Findings. Class divisions in society:  Class divisions, home ownership levels and structural ageing.  Class divisions and education.  Class divisions and individualism.

‘Baby boomers and housing inheritance’ Findings. Elder care and inter-generational contracts:  Provision of care.  Intergenerational contracts. Savings and housing inheritance:  The more advantaged cohort.  Financial planning for retirement.

‘Baby boomers and housing inheritance’ Findings. Intergenerational transfers:  Lifetime transfers.  Power.  Traditionalism. Home equity release:  Use home equity for life style and well-being.

‘Baby boomers and housing inheritance’ Conclusion:  Fluidity between traditional and modern values.  Mass wealth transfer a one-off aberration unique to baby boomers.  From self-sacrifice to self-interest.  Support needed for baby boomers’ children.  Increase family social capital.