PPB November 2021

independent, active and poised to flex their economic muscle. Baby boomers (those born between 1946 and 1964) are 10 times wealthier than millennials. In fact, boomers hold more than half (53.2 percent) of U.S. wealth, according to Bloomberg . The senior market is sometimes referred to as the forgotten market, but to paraphrase a quote in an article in The New York Times , while millennials are sharing about stuff, boomers are buying it. Older adults don’t have more money simply because they’ve been in the workforce longer—the Federal Reserve reports that millennials have substantially less wealth than baby boomers had at the same age. In 1989, when boomers were about the same age as millennials are right now, they controlled 21 percent of the country’s wealth. This is nearly five times what millennials currently own. Americans ages 70 and older had a record net worth of nearly $35 trillion in the first quarter of 2021, according to the Federal Reserve. So, what are they doing with all this wealth? Many of them spend their money just like younger generations. For example, one in four people age 80 or older have a mortgage, according to the Center for Retirement Research at Boston College. Nearly half (46 percent) of homeowners between the ages of 65-79 are also paying off their house. Older adults are also generous with their giving. Philanthropy Roundtable reports that charitable giving peaks at ages 61-75, when 77 percent of households donate. Only about 60 percent of households headed by someone age 26-45 donate to charity. Seniors have substantial wealth to share now before they eventually pass it on to Gen Xers and millennials. Over the next few decades, financial experts are projecting the largest intergenerational wealth transfer in history as baby boomers pass down $30 trillion in inheritance. In the meantime, many seniors are sitting pretty. They have money in the bank and they’re ready to enjoy their golden years. Read on to learn about this thriving market and explore some promotional ideas for reaching the potential end users within it. Market Snapshot One is the loneliest number—especially in the U.S., where seniors are more likely to live alone than anywhere else in the world. In the U.S., 27 percent of adults over age 60 live alone compared with 16 percent of older adults in 130 other countries around the world. This isolation can take a toll. Loneliness increases the risk of dementia by 50 percent, the risk of stroke by 32 percent and the risk of an early death by 26 percent. The nonprofit, Campaign to End Loneliness, reports that half a million people over age 50 go at least five or six days without seeing or speaking to anyone at all. For two-fifths of older people, TV is their main company. The Administration on Aging notes that even just 15 minutes a day of virtual or in-person interaction with another human can help mitigate the effects of loneliness. Promotional campaigns can help bring awareness to the loneliness epidemic facing senior adults. Places like senior centers, libraries and recreation centers can use promotional products to educate older adults in their communities about programming, services and ways to stay connected. Why Seniors Should Matter To Marketers Marketers often woo younger consumers because they think that once they are hooked on a brand, they’ll be a customer for life. But that’s not necessarily true, says an article in The New York Times , because tastes and passions often change as they age. In contrast, baby boomers are more apt to find favorite brands and stick with them. This audience has the time and money to make it worthy of every company’s marketing message. The Myths Around Marketing To Seniors Consumers over 60 are overwhelmed with advertising that promotes retirement planning, insurance plans, health-care systems, senior living communities, and health supplements and devices. What they are interested in are comfort and convenience including tech products, travel excursions, luxury cars and vacation homes, along with home improvement to upgrade or reconfigure living spaces. Marketers who overlook their wants and needs are missing huge opportunities. Many Seniors Aren’t Ready To Retire Depending on their birth year, Americans can receive full Social Security benefits as young as 66 years old, but many want to continue working. In 2020, 9.8 million adults ages 65 and older were still in the workforce or actively seeking work. Promotions that help them find employment and train them to continue learning to excel in their jobs have value in this market. Source: Administration for Community Living | NOVEMBER 2021 | 41 GROW