Yesterday, I chatted about the heterogeneous nature of the 50-plus market...and discussed differences between the GI Generation (born between 1910 through 1932), and Baby Boomers (born between 1946 and 1964.)
Again, I am borrowing from the work and views of Ruth H. Mitman, Ph.D, a gerontologist and educator who is a member of the American Society on Aging www.asaging.org and the National Council on the Aging www.ncoa.org.
While I'm sure that you've heard the numbers, the statistics of the 50-plus market bear repeating. Between 2000 and 2010, the number of persons over the age of 50 will increase by 50%. This population owns more than 75% of all assets in the U.S., and earns 50% of all discretionary income today.
Ms. Mitman argues convincingly that financial service companies should be definitely not lump the GI Generation and the Baby Boomers in the same demographic...simply because they are both 50+ in age.
Baby Boomers command attention because there are so many of them...78 million in all. The first of the Baby Boomers turned 59 1/2 last year. The last of the contingent will reach "retirement age" in 2023.
Baby Boomers experienced the Vietnam War and saw/participated in the conflict at home. They also witnessed the assassinations of JFK, RFK and Dr. Martin Luther King...as well as the incipient civil rights, feminist, environmental, and consumer rights movements. They were the first generation to have grown up with access to credit cards, and have learn to buy now and pay later. They are, in general, highly educated and will question authority.
Their brand of retirement will look rather different than the GI Generation.
In working with Baby Boomers, Dr. Mitman goes on to suggest the following:
- First names please. Being called "Mr." or "Mrs." will make them feel old, and (Heaven Forfend!) like their parents.
- Boomers will want to be in charge of business interactions. They will look to you to lay out the options and discuss benefits and features...however they will want to control the actual buying decision. (Wait a minute...I don't know if I agree with this one.)
- Save them time. Convenience is a huge factor for boomers...given their busy, active lives.
- Offer multiple ways of payment. Remember that credit is a way of life.
- Consider combining non-profit causes, e.g. global warming, disaster relief, with your for-profit business. Offer ways that boomers can give of their time, talent, and money to help those who less fortunate.
In other words, financial advisors who are/will interact with the 50-plus market should recognize, and be extremely cognizant of, generational influences.
It's called "competitive advantage."
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