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Since the year 2000, 10,000 baby boomers a day have turned 50. That’s one
person hitting the half-century mark every 7.7 seconds. People in this powerful over-50 market segment:
• Own more than 70% of the U.S. financial assets.
• Control 70% of U.S. households ($9 trillion in net worth).
• Account for more than $2 trillion in income.
• Are responsible for half of all discretionary spending in the U.S.
Among over-50s:
• 40 million are credit card users.
• More than 79% own homes.
• They purchase 41% of all new cars and 48% of luxury cars.
• They buy 80% of luxury travel.
• They control $525 billion a year in healthcare spending,
• And they use nearly 75% of all prescription drugs and make half the over-the-counter drug purchases.
It’s no wonder that hundreds of consumer surveys have been carried out to find out how to market to people over 50. While this is probably a more diverse group than other market segments (because it spans people at the peek of their careers to active retirees to the elderly in need of care and all ranges in between), some common behaviors and attitudes emerge.
• Today’s over-50s are more fit and active than any previous mature generation.
• They don’t think of themselves as old, and they are not as likely to opt for traditional retirement as their parents did. Many will continue working; some will go back to school.
• They aren’t slowing down...not only are they working, volunteering, dealing with their children who may still be living at home and enjoying (and maybe even caring for) their grandchildren, but they also are increasingly responsible for the care of their elderly parents.
• They have an interest in health-related and anti-aging products that will allow them to remain youthful and active.
• While they may have considerable disposable income, they are still value-conscious in their purchases.
• They are skeptical about outrageous product claims and want realistic information when making buying decisions.
• Many are Internet savvy, using the Web to communicate with loved ones, get information and news and make a variety of purchases.
These and many more factors need to be considered when the target audience for your product or service is persons over 50. An integrated marketing firm can provide guidance in ways to shape your message, narrow your target and reach it cost-effectively.
Sources include: AARP; Imprint Magazine; PowerHomeBiz.com; American Medical Association; Brandweek; CarSmart; The Conference Board; Corporation for Independent Living; DFD Marketing & Research; Find/SVP; Health Care Financing Administration; Travel Industry Association of America; U.S. Bureau of Labor Statistics, Consumer Expenditure Survey; U.S. Census Bureau; and Age Wave.
