The big news this month, based on the number of
reporter calls we've gotten, is that the first
Baby Boomers are starting to turn 60 years old. Read
more about the insignificance of this event
and other Boomer marketing news in this month's
issue:
-
Last Boomer Turned 41 on 12/31/05
Anxious About Turning 60 in 2023
As a Baby Boomer marketing expert, I'm excited that
the last Boomers finally turned 41 on December 31,
2005.
You've probably read a lot about it in the news in the
last few weeks.
Oh, you missed those stories?
How about the ones that there are slightly more
Boomers still under 50 than there are over 50 (but of
course, that will change over time)? Did you miss
that one too?
It seems the media likes transitions and milestones.
So we can't really blame them for going off the deep
end reporting with breathless excitement about the
first Boomers reaching 60 years old.
But that's not the news. The news is that enough
Boomers have turned 50, leaving behind
that "coveted demographic segment of 18-49"
forever. And marketers are finally starting to notice.
First, AdAge had a piece last week that actually
referred to consumers in their 50's as people
with "media habits" worthy of notice.
That is a remarkable change.
Then, our new friend, Katie Couric of the TODAY Show, made
another comment about consumers over 50 being of
value and interest. She was interviewing the
developers
of a new show on Bravo that appeals to 30 and 40-
year old women. Katie interupted and asked "So what
are your plans to attract women over 50?" This, of
course, brought the interview to a painful halt as
that's not in the plans. Katie, who turned 49 on
Saturday, was not amused.
The momentum has shifted. The pendulum is swinging
now toward 50 and over. The 60 milestone for those
first 3.8% of Baby Boomers may make for good
newspaper copy, but it's the fact that the
teeter-totter of Baby Boomers, from ages 41 to 59
as of the
end of 2005, is now leaning towards the over 50 side.
Marketers are never quick to change. Look, it's been
10 years since those leading edge Boomers passed
50 and not much has changed. But now that the
middle
is 50, watch out.
And that last Boomer, who just turned 41, has 19
long years before he or she reaches 60. Can you
imagine the changes they'll see in marketing to
Boomers between now and then?
Join the Marketing Pulse :30 Survey
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marketing to Boomers.
You can take this week's survey on the hype about Boomers turning 60 here.
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findings among their peers, and an email with the full
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Fascinating Insights from Pew Research
Pew Research released a new study of Baby Boomers
last month that is worth a closer look, especially for
anyone marketing financial services to Boomers.
It's called "Baby
Boomers Approach 60: From the Age of Aquarius to
the Age of Responsibility" and investigates how
aging Boomers are coping with being sandwiched
between raising minor children or providing financial
and other forms of support to adult children or to
aging parents.
The major findings include:
- In their financial exchanges both with parents
and adult children, Boomers are
more likely to give than receive. For example, of
those Boomers with a living parent,
nearly three-in-ten (29%) report that in the past
year they provided financial assistance
to a parent, while 19% report that they received
financial assistance.
- Boomers are now more likely to have
living parents. Thanks to advances in life
expectancy, 71% of today’s Boomers have at least
one living parent, the survey found.
In 1989, just 60 percent of people ages 41 to 59 had
at least one living parent,
according to a Gallup survey.
- When it comes to providing financial
support for children, the Boomers’ parental
role usually extends beyond the time when a child is
a minor. Some 63% of Boomers
report that they have at least one adult child (ages
18 and older), and of this group,
about two thirds (68%) say they are supporting an
adult child financially, either as the
primary (33%) or secondary (35%) source of support.
- Boomers view financing a child’s college
education as a parental responsibility.
Sixty-six percent of Boomers – and 62% of the adult
public, in general– describe paying
for a child’s college as a parental responsibility. A
majority of Boomers (56%) also say
it is a responsibility to allow an elderly parent to live
in one’s home if the parent
wants to move in.
- Boomers, younger adults and current
retirees all share a moderate optimism about
their finances in retirement. More than half of
Boomers who are not yet retired say
they expect to “live very comfortably” (26%) or to
be able to “meet expenses with a
little left over” (29%) once they retire. Non-retired
Boomers are a bit more
apprehensive than are younger adults and current
retirees about the prospect of not
having enough money in retirement.
- Boomers say IRA’s and 401(k)’s will be
biggest source of retirement income. While a
plurality of current retirees (42%) say that Social
Security is their biggest source of
income, just 21% of non-retired boomers and even
fewer adults ages 18 to 40 (13%)
hold that expectation. Instead, about half (49%) of
Boomers who are not yet retired
say that a 401(k) or IRA savings plan will be their
biggest source of income during
retirement, and fully two-thirds of adults ages 18 to
40 share that view.
- Boomers are satisfied with their family
life. Nine-in-ten boomers say they are very
(72%) or somewhat (18%) satisfied with their family
life. These assessments place
Boomers in sync with adults older and younger than
they are.
The Pew study reveals the "sandwich" facing
Boomers today, with aged parents in need of care,
and mouths still to feed at home.
Just remember, this too shall pass. In the case of the
aged parents, literally. In the case of the kids still
needing support, time will help them move on.
The Boomers will have time and money to spend on
themselves. Will you be ready?
Report on the White House Conference
on
Aging
The 2005 White
House Conference on Aging was December 12-
14, 2005. The purpose of this
once-every-ten-years event was to develop policies
and programs
regarding old people in America and to make
recommendations to the President and Congress.
This year's theme was "The Booming Dynamics of
Aging -- From Awareness to Action."
I was able to attend as an At-Large Delegate, one of
only a handful of "Boomer business" experts in the
1,200 member delegation.
You can read about the work of the Conference on
the Web site. But here are my observations:
- 90% of the delegates were in the "aging services"
business -- either governmental, non-profit or
for-profit. Their agenda was all about providing
services
to old, feeble and infirmed people. I suspect most
Boomers aren't worried about facing those conditions
themselves anytime soon.
- By appearances, most of the delegates had been
in the aging services business since, well, it was a
young industry. At the age of 46, I was at the very
young end of the delegate age range. As a result, I
had a nagging feeling that I was a car expert
surrounded by buggy whip experts, metaphorically
speaking.
- The "coming tsumani" of "old" Boomers is certainly
on everyone's mind, but no real action will take place
(in my opinion) for another 8 to 10 years. The first
Boomer won't reach early retirement age for two
more years, and the
midpoint for Boomers reaching 65 isn't until 2017.
Between
now and then there will be movement on a wide
range of important issues (can you say Social
Security and Medicare?), but I don't predict many
significant solutions
until 2015 or later. By then maybe enough
Boomers will have stayed in the work force that
the "tsumani" actually doesn't overwhelm aging
services like Social Security or Medicare.
- By far the best (and most frightening)
presentation was by David Walker, Comptroller
General of the United States. He presented the facts
and figures without political bias or agenda. Look
over his slides and see for
yourself (PowerPoint slides, 1.72 megabytes)
.
The big snub at this 8th WHCOA since 1961 was that
the guy occupying the White House didn't bother to
come (and he was in town). Not that he's running for
re-election, but he didn't make any friends among
this crowd.
My conclusion: despite the hard work of those
involved, nothing of much significance will come of
this Conference. And by the time the next one rolls
around in 2015, the pains caused by an aging society
will be well-documented and much better understood.
And perhaps even addressed.
Last Minute Aside: The news
yesterday
about Verizon and IBM replacing traditional company
pension programs with 401(k) plans shouldn't cause
much
alarm -- it's just the marketplace adjusting to today's
realities. Financial services companies have seen this
coming, so this shouldn't be surprising news.
Finally -- Satisfaction
for
Rolling Stones Fans
Funny story. Last week the people putting on the
halftime of the SuperBowl featuring the Rolling
Stones put out a call for people to come dance on
the field during the performance.
Here's the funny part -- they asked only for those 18
to 45 years old -- the oldest of which would be
17 years younger than Mick Jagger himself!
Enter the Internet and a pissed-off Boomer posting
to a Blog and the next thing you know, the NFL
issues a press release saying "the National Football
League will accept dancers 18 and older —
no age
limit. 'We wanted to open it up,' NFL spokesman Brian
McCarthy said Friday."
Score one for Boomers.
Who are, as my colleague Brent
Green put it, "A gathering
force to be reckoned with may make ageist idiots
think twice in the future."
The tide is turning as Boomers grow older.
New Boomer(?) Media:
GeezerJock
A relatively new magazine trying to reach aging
Boomers is GeezerJock. The content and attitude of the magazine
and Web site seem well-matched to the attitudes of
aging
Boomers.
The only thing I wonder about is whether the name
will propel
it forward or hold it back.
Among some Boomers, a little self-deprecating humor
will go a long way. Among others, especially those
gung-ho enough to be "jocks" at this stage of life,
they may take themselves far too seriously to be
calling themselves geezer jocks.
All I know is that the folks selling the "GeezerJock"
apparel and tee shirts have an even more
controverisal, and entertaining name: Blue Hair
Action Wear -- One life...no finish line.
Old and Online
Some new statistics reported at eMarketer about BURST! Media's
research of older Web surfers found that they are
indeed online and active.
This is cast as bad news for traditional offline media
like newspapers, which are still read by Boomers (and
virtually ignored by younger generations). If Boomers
are going online for content not available in the
offline world, that's bad news for any offline media.
As more and more Boomers turn 50 and older, expect
more and more stories like this one.
New Boomer Book
Dr. Leslie Harris, of Mature
Marketing, is compiling a new book to be
published by Paramount Market Publishing
about marketing to older Boomers.
Tentatively titled ""Beyond the Boomers: The
Transition Years," this book will consist of chapters
contributed by experts, authorities and academics in
the field of marketing to Boomers.
And yes, that includes a chapter from the Boomer
Project on the industries Boomers will transform as
they grow older.
The book is on a fast schedule and is planned to be
in bookstores before the end of 2006. We'll provide
more information about it later in the year.
