With the first wave of Baby Boomers turning 70 in 2016, considered-purchase brands can’t afford to neglect Boomers in their marketing efforts.
While Boomers may have dropped their age-inappropriate first name, they have not dropped their booming influence on business one iota.
In fact, over the next 15 years their influence will grow exponentially greater as the Boomer market grows to 29 million, and 1 out of 4 people you are likely to be marketing to will be 65 and older.
As more and more Boomers hit 65 and keep going, they will be entering an even more powerful and influential phase of their resilient, you-can’t-take-it-with-you spending lives. For considered purchase brands that can stay relevant, authentic and still deliver on Boomers new priorities, here are 9 reasons why your bottom-line will keep on booming:
- Now Spending
For all the ups and downs of today’s economy, Boomers are still the wealthiest segment of our population, holding $13 trillion in assets, which represents over 50% of America’s entire asset base.
- Future Spending
Despite the lagging economy and a fair share of naysayers, Boomers are expected to inherit somewhere between $10 trillion to $40 trillion. Ignoring the large spread, the economy and the “Doomers”, any trillion is still a huge amount of money.
- Small Business Bigness
Boomers will continue to have a heavy influence on American business. According to the Labor Department 2006 report, Boomers (ages 42 to 60) and older entrepreneurs (60+) account for 54 percent of self-employed workers–up from 48.5 percent in 2000.
By all accounts, the number of entrepreneurial Boomers will grow even bigger.
- Automotive and Travel
The 65+ consumers are buying – driving 22% of all new car purchases, and booking travel at inspiring levels – over $26 billion last year.
- Insurance and Home Healthcare
Unlike their parents, Boomers are loading up on long-term healthcare insurance. And because so many Boomers are dual-income households, rather than personally caring for their elderly parents, they are outsourcing that care to the burgeoning home-healthcare industry.
True, the graying of America will present some challenges to education, however there are significant pluses as Boomer Grandparents already the largest population in the country, are picking up the tuition tabs for everything from day-care to prep-schools to universities. Universities will see another boom from America’s most highly educated workforce – as Boomers retire, they will be returning to universities to continue their quest for knowledge – and perhaps their glory days.
Since nearly 70% of Boomers are homeowners, we can expect a startling range of change. A recent Boomer survey estimated 22% are planning to remodel (and age in place with home-care?); others will shift to assisted-living or some other version of continuing-care and still others will move to master-planned resort communities before seeking an end-of-life care facility. And remember, this IS still the rebel Boomer market, so you can expect there will be a fair share that elect to sell their home, grab their Harley and travel the globe.
- Plastic Surgery and Pharmaceutical CosmeticsS
For Boomers, the process of aging is going to be as beautiful as their money can buy. And it’s not just Boomer women. The Boomer men are getting their fair share of assistance in looking younger too.
As the wealthy segment of America’s wealthiest generation ages, the good news is that charities (a huge considered-purchase, if pearly gates count) can expect to receive more.
The ultimate Boomer Bill Gates has joined forces with the ultimate Senior Warren Buffet to create the Giving Pledge – and they have invited the very, very top % of the world to join them in leaving the majority of their money to help the world’s poor, sick and hungry. Expect this Giving Trend to spread.
In 2015, Millennials surpassed the outsized Baby Boomer generation as the nation’s largest living generation, but don’t confuse size with spending power. For many considered purchases, Boomers still win with their wallets.