“Growing old is compulsory, growing up is optional”

An hour exploring the over 50’s market

Sir Bob Monkhouse

1 hour to tell you… 10 things you need to know about the over 50’s

Why the over 50’s are so important to you Challenging the common myths How to captivate and attract this audience Understanding shades of grey

So, why is everyone talking about the over 50’s?

There are 19million people aged 50 or over in the UK

They account for 80% of personal wealth in the UK

Only 5% of the audience have a mortgage

59% of people want to keep working part-time after retirement

6.6m of them regularly use the internet (30%)

86% of 50-60 year olds own a mobile phone, 49% of over 80’s do!

Everyone is worried about everyone else getting there first!

Oftel.gov.uk 2006 HSBC Global research 2005 Forrester Consumer Technographics 2005

1. THEY ARE MORE THAN JUST ONE GROUP

Over 50, over 65, over 75…

Roger

The baby boomers, born between 1941-1955, aged 50-65.

Roger is an active member of the workforce and expects to be so for atleast another 10 years, a Property Surveyor with a higher salary than he’s ever had at the same time as his lowest mortgage ever. He is email, mobile and web literate – both at home and work. It’s just a key part of his life now. Roger and his wife are active people, with the freedom that having older children gives you, enjoy eating out, travel, theatre etc.

I’m not interested in pipe and slippers, more like snorkels and trainers

Roger, 52 years old with 2 children. One aged 19, one 16. The elder child has left the nest to go to University, the 2nd one isn’t far behind! Roger and his wife, a teacher are about to get their spare time back, but 2 children at Uni might not give them more disposable income…(for now).

Peter

Young war children, born between 1931-1941, aged 65-75.

to relax, play Golf and see more of the grandchildren and then may decide to do some consultancy work 1-2 days a week. They have no mortgage, and outgoings are few and far between (apart from presents for the grandchildren!). Peter and his wife are aware and have embraced new technology (although they struggle with it a little..), from the digital camera to email to keep in touch with their eldest son in Australia.

Peter, 66 is married with 3 adult children aged between 38 and 45 whom they see often along with their four grandchildren. Peter has recently retired from his accounting job but his wife works part-time in the local florists – to keep active. Peter wants to take a year or so

There’s plenty of gas left in the tank

Sidney

God’s waiting room, born between 1920-1930, aged 75+

Sidney, 80 is recently widowed and lives on his own in a small bungalow close to his family. The majority of his time is spent at home and in the garden. His children visit him when they can to keep him company, and he gets great pleasure in seeing his grandchildren grow up, despite not seeing them often.

He served in the armed forces and is now affected by physical problems despite being relatively active in the mind. Feels a little out of touch with today’s society and is reluctant to new developments and technology. He has a mobile phone, but it isn’t used for everyday use, merely for emergencies. Sidney has built up enough of an estate through savings and property to qualify for inheritance tax.

This is the last time that retirement will look like this.

The Survivors cross age groups Little or no equity in property

Over reliant on family

Little or no occupational/personal pension

Dependent on state pension and means tested benefits

Unhealthy compared to comparative age group

Living on or below the poverty line

Very little disposable income “life has become worse since I stopped working”*

2. ATTITUDE BRINGS EVENGREATER INSIGHT

These famous men are the same age!

3. IT’S WHERE THE MONEY IS

Never assume who your customers are!

80 - 60 - 40 They account for:

80% of the wealth, 60% of the savings, 40% of the disposable income

There’s a lot of them! 42% of the UK adult population are over 50 19m people and growing

They are spending, and will continue to do so over the next 10 years Retail spend by the over 55s will rise from £74.6bn to £117.2bn* Spending by 55-64s will increase by 47.4% Over 75s share of retail spend will jump by 48.7%

British Council of Shopping Centres 2006 OFNS 2005 Verdict Consulting 2005

4. IT IS NOT A DYING MARKET

“Growing old today involves a whole new effort: trying to stay young.

And many of today's over-50s have the money to spend on it. Market Research company Mintel estimates that the 50-plus generation will grow by more than 6 million in the next 25 years.

Consumer spending among the UK's 50-to-69-year-olds currently runs at £300bn a year, and we buy more designer fashion, premium cars, and other expensive goods than any other group. Hard to believe, isn't it?”

They’ll outlive your 5 year plan The over 50’s are members of the grey market for 1/3rd of a century

Average life expectance in the UK is male (77) and female (79)

Once you reach 50, life expectancy increases Male – 81 Females – 85

The average “life expectancy” of a UK Marketing Director is 20 months

Marketing Magazine 2006 OFNS 2006

5. YOU CAN’T TAKE IT WITH YOU

Life is for living

More disposable income spent on travel and experiences - “declutter”

Spending money on grandchildren (desired and required)

Equity release to fund enjoyable retirement

Growing awareness of inheritance tax

Many working to keep the brain active, not to earn

6. THERE IS A STRONG DESIRE TOREMAIN ACTIVE

Only 3% think retiring is the “beginning of the end”

56% think retirement is an opportunity for a new phase in life”

41% think retirement is about “staying young at heart”

42% think retirement is about “keeping the mind sharp”

70% expected to work “in some fashion” in retirement 25% for mental stimulation 70% for other non financial reasons

HSBC Global Research 2005

7. I KNOW I’M OVER 50, THANKS

Remember where I’ve come from… born 1956

8. BOOMERS ARE SHAPING RETIREMENT, NOT ACCEPTING IT

“My father at 65 was an old man. I’m much older than that now but I’m not an old man. I don’t think the same way, or behave as he did and I don’t have any intention of behaving as he did. Marketing hasn’t caught up. We’re not decrepit and crippled”

Male 66-75, Manchester

I hope I die before I get “old”…

They recognise they are different from their parents (60’s teenagers)

Stand up for their rights Life optimistic Willing to try new things 450,000 Brits living in Spain alone!

65 is neither a hurdle, nor a barrier Mixed life of retirement, work, voluntary Some may need to work to fill a pension gap to enjoy retirement “you’re only as old as you feel”

9. IT’S ABOUT VALUE, NOT PRICE

“You get what you pay for”

It’s about total quality for money spent, not low price

63% of Tesco Finest sales through Clubcard are made to the over 50’s

46% said that “poor customer service” is the leading barrier to shopping

Only 4% said that high prices were a deterrent

71% would pay more for the same merchandise closer to home

Tesco Clubcard/Dunnhumby 2006 LMUK Consumer Study 2006

10. THEY ARE ACTIVELY EMBRACINGTECHNOLOGY (WELL, MOST OF THEM)

“I love playing poker and bingo online with people all over the world. I find websites are a great way to meet new friends. My grandchildren call me ‘cybergran’!”

Elizabeth Sheridan 73, Bradford

Search, holidays, emails, SMS – the lot Previous generations passively received communications

The 50-65 group can (want to?) actively interact with communications

Majority are comfortable with PC’s, mobiles, email through work and children

72% of 50-65’s have access to the Internet

In the US, internet usage amongst 50-65 group was defined by leisure travel and financial retirement planning

Thomas Cook Travel Project Study, 2004 The Future Foundation, 2005 AgeConcern 2005 Oftel 2006

Nic Chamberlain

Martin Chillcott

Get in touch:

@nicchamberlainnic@303.com.auhttp://303digital.blogspot.com/

chillcom@btconnect.com

Thank you