Baby Boomer Insights

Are you and your significant other in synch on how you'll spend your retirement years?

Saturday's Wall Street Journal's "The Journal Report" devoted the entire section to Encore: A Guide to Retirement Planning and Living  (subscription required) and boy, was it interesting. Apparently, not very many Boomers have had "The Talk." You know... the one where you come to agreement on several issues regarding retirement.

The article cited research by Fidelity Investments that revealed that 41% of couples (when interviewed separately) disagreed when asked whether at least one partner would work in retirement. Some 35% differed when asked about each other's expected retirement age. Then, drum roll, please...  38% said they "worked together on financial planning for later life."

One has to wonder if these people are waiting until retirement to finally find time to talk with one another. By then it'll be too late. That's one reason the article offered "The 10 most important questions you and your spouse should ask one another about retirement."   

1.      Do we really want to retire, and if so, when?

2.     What is our vision of retirement - and do we share the same vision?

3.     Where do we want to retire?

4.     What's our strategy for building and preserving a nest egg?

5.     What assets do we have for retirement - and are they invested in the most beneficial ways to achieve our goals?

6.     How much money will we need to support our lifestyle in retirement?

7.     Do we have an estate plan - and where is it?

8.     What will our legacy be?

9.     What kind of relationships - personal and financial - do we want to have with our children and parents in later life?

10.   How will each of us approach, and manage, getting older?

Although this particular article addressed only married couples, it's certainly safe to assume these questions are just as applicable to  those in committed partnerships. The point is, we need to get the dialogue going with whomever we plan to live out our retirement years with.

Many people don't really start thinking seriously about "the retirement years" until 10 years out and they get really serious about five years away from packing up their office for the last time, according to  several studies. This seems to be especially true of Boomers, who have always been very focused on the "now."  We tend to take great vacations, buy second homes, generously give to our children and charities, and financially support our parents.

All of a sudden, we realize the money faucet won't flow forever and our overscheduled lives will seem almost empty if we don't plan for how we'll fill them. Many Boomers will devote their time to volunteerism. Most will "re-career" in some way, working at jobs we want to do just because they interest us or are fun.

WHAT we do isn't as important as the fact that we know ahead of time what we'll be doing and how.

Watch this space over the next few weeks for more information about Boomers and their later years.

And Ralph... if you're reading this... this answers are 1) I plan to re-career in retirement; 2) I want to quit working full time by the time I'm 62; and 3) you already know we have a financial plan in place - and we're SO close. I had three numbers right in the lottery this week!

Boomers will spend on prevention, indulgence. Is this where you come in?

"We have a nation of first-year medical students!" So declared Meg Wash, a partner at CommonHealth, and keynote speaker at the Consumer Health World Conference in Chicago earlier this week.

She went on to explain that Boomers are voracious researchers who put their online search capabilities to the test when it comes to healthcare. Apparently, we spend more time looking up medical conditions, self-diagnosing, and reading about drug warnings than just about anything else. We don't just take our doctor's word for it when told about a condition or how to take prescriptions.

One number she cited really surprised me: she said half of  Boomers and Matures don't fill the prescriptions their doctors give them. Money plays a factor many times, but they also don't just do what the doctor recommends. In addition to research, they seek the opinions of influencers, which include family and friends. (Pay attention to that, marketers... if you want Boomers to consider your offering, you need to convince the people who convince them.)

Boomers are also all about prevention. That's one reason 20% of  us now belong to gyms and the number of Boomers enrolled in yoga classes is tripling annually. And Lord, do they need it! Boomers tend to be stressed, rushed and exhausted, especially women.

How can marketers help? Offer Boomers products and services that make their lives easier, that give them 10 minutes a day to be self-indulgent. As Ms. Walsh noted, no company does this better than Starbucks.

People don't go there to buy coffee so much as to get a break by enjoying some music and people watching as they sip on a flavored, pricey drink. That's why Starbucks is a destination, not just a place you happen by (though, it's really hard NOT to happen by one since they've been built on 3 of every 4 corners in the U.S.).

As you think about your products and service, consider how you can market them to Boomers as something they deserve to use. Sell to their mindset, rather than their wallet.

How is your company doing this?

Random insights from the Consumer Health World Conference: What's up with Boomers?

Greetings from the International Consumer Health on Demand Conference in the Chicago Hilton! I'm here to attend the Boomer track and fill you in on interesting presentations and people I meet. The conference actually starts tomorrow, but I'm here attending the pre-conference workshops.

This morning I attended a workshop at which Jennifer Petterson, Edelman's own EVP and Director of Consumer Health, walked participants through a fascinating case study about promoting Curves, the women's fitness center that is growing like gangbusters in the U.S. 

Jenn talked about the importance of raising awareness about the science behind Curves to counteract skepticism about whether a 30-minute workout can really be enough to make a difference.  She shared how Curves used its relationship with Baylor University researchers to  elevate its discussions with physicians. A couple of things came from that: Curves attended trade shows to "take the Curves experience" to doctors and nurses, re-creating the environment right there on the trade show floor using local Curves franchise owners. The company also now offers prescription pads for doctors to "prescribe" Curves to patients, who can turn them in to experience 5 days of  the Curves program. This has made it easier for doctors to initiate the often-uncomfortable conversation about weight loss with patients and makes the patients understand that Curves really is a viable solution, not a marketing gimmick.

This kind of marketing is especially effective for Boomers, 50% of whom say they want to be more fit and healthier. (By the way, did you know that 20% of Boomers have gym memberships?) Expect to see more Boomers shaping up with Curves, which is kind of the anti-gym. Its programs are more about movement and being fit, rather than building muscles and being buff.

This afternoon I had the pleasure of hearing Matt Thornhill, author of The Boomer Consumer and founder of The Boomer Project. He emphasized the importance of marketing to Boomers based on their life stage, rather than their age.  He said that Boomers fall into clusters that reflect the seasons of their life and key shared experiences. Companies that market to them based on age will easily miss the mark half the time.

One interesting set of stats he shared was about a study his group did in which they asked 18-40-year-olds "How old is over- the- hill?" They declared the average to be 57. Gulp! The survey then asked self-described Boomers  what age is "over the hill" (they were given ranges) and they said 75. THEN they asked Boomers the question WITHOUT using any age range and the answer was "15 years old than I am."

He also noted that ageism is a certain killer; hence, when casting a grandfather on a TV show or in an ad, for instance, look more toward Pierce Brosnan than Wilford Brimley. (And in case you haven't heard.... the average age of a first-time grandparent is now 48).

Finally, he reminded the audience  that when it comes to Boomers inheriting all this supposed wealth (now estimated at $7 trillion, down from the $40 trillion predicted a few years ago) the fact is, the money will be split severals ways because the Silent Generation rarely had just one child. Four or five wasn't at all unusual. That means the wealth is spread thinner, so the perception that Boomers will soon come into a lot of money and will be looking around for a place to spend it simply isn't going to happen.

Tune in tomorrow for more insights as I go to more sessions. And let me know what questions you hope get answered.

When dinner music becomes an assault on the ears: let's insist restaurants turn down the noise

I'm going into the weekend with a scratchy throat, a byproduct of a trendy restaurant. I spent all my time at lunch yelling at my lunch companion.

Mind you, I didn't do  this because I was angry or he had done something wrong. On the contrary, I thoroughly enjoyed catching up with my old friend Peter Baron, a PR guru here in Atlanta. But we had to yell at one another to be heard over the music. I wish I could say this is unusual; unfortunately, it's anything but. In fact, recently my husband and I walked out of a Chili's vowing never to go back because it was so loud we couldn't enjoy our meal or have a decent conversation.

Peter, Ralph (my husband) and I are all Boomers, but I'm the only one with a hearing problem. (By the way, that turns out to be statistically relevant, as studies show 1 in 3 people over 50 suffer a hearing loss). Even though they hear much better than I do,  they share my annoyance at finding it  difficult to enjoy visiting over a meal.  (Did you know, by the way, that according to the Hearing Aid Music Foundation, Boomers are the largest demographic in history to suffer from preventable hearing loss brought on by environmental conditions, such as listening to loud music? )

I asked a waitress at one  restaurant why it was necessary to play music so loud and she answered - with a straight face - "Because it creates atmosphere." Who knew contributing to noise pollution was a marketing ploy?

I hereby ask forgiveness of all those I've ridiculed for their ever-present white earbuds. I now suspect they may be trying to block out music, not pipe it in!

We Boomers need to be bolder about asking restaurant managers to turn down the music when it keeps us from enjoying our meal. There's no reason to pay to be assaulted. And if they don't ? Plead temporary blindness when the check comes.

How Toronto pulled off being a model for the latest trend in travel: multiple generations headed in the same direction

I just got home from four glorious days at the Toronto International Film Festival, where I had the time of my life in what I consider one of the friendliest and prettiest cities I've ever visited. There were celebrities galore, of course, and a feast of over 300 films to choose from. But, as they say on cheesy infommercials, "Wait! That's not all!"

I also got to see a perfect example of a destination that understands how to create an environment that encourages multi-generational travel. There was something for everyone. Visitors could choose any number of films, based on type, director, country of origin, specific actor(s), time available, you name it. Perhaps you've heard that there were many political, dark and very provocative films debuted at this event. But don't be mislead - kids were a part of the scene as well.  There was an entire set of films representing the best in children's cinema.

Meanwhile, down by the harbour was a big music festival featuring all kinds of bands (again, some well known and some you may never have heard of). Even the vegetarians were welcomed with their own event.

So in one weekend, you could go to one city and enjoy everything from serious films to silly street performances to loud music and good food (assuming, of course, you think vegetables fall in to the "good food" category). It's as if Toronto decided it wanted to model the latest trend in travel - multiple generations traveling together. Boomers were everywhere, but so were their Gen X children, with the Gen Y children in tow.

Already, the Toronto International Film Festival is considered among the top two such events in the world, and I believe one of the reasons it has earned that title is because organizers so warmly embrace diverse groups of people and they understand that what happens outside the theater can shape opinions on what happens inside.

So, whether you go to star-gaze, study cinematography, see the town, or just absorb the city's wonderful culture, you can't help but walk away satisfied. In other words, no event was attempting to siphon off customers of another event; on the contrary, they seemed to all blend together.And by the way, I can't even imagine another place or environment where word-of-mouth is so encouraged or facilitated.

The lesson marketers can take away from all this is simple, really: don't be myopic. Rather than working so hard to make your event stand out, look for ways to bring together multiple events that increase the likelihood that you'll positively affect attendance across multiple age groups; otherwise, when the "rising tide lifts all boats," you'll be standing on the dock wondering how your boat ended up under water.

Advertising to Boomers: it's finally catching on!

It has always struck me as a bit ironic that advertisers often ignore the over-50 crowd, since these are exactly the people who grew up on advertising and we have the most money to spend. Well, according to a recent article in Ad Age, advertisers are finally waking up to the fact that we reward companies that make an effort to relate to us.

Somewhere along the line, marketers got the idea that the 18-34-year-olds were the force to be reckoned with; consequently, most advertising has courted that group. The thinking was that the older demographic (gasp! 50+! what could they know!) wasn't worth chasing because we're too set in our ways. Well, guess what. That's just not true. On the contrary, Boomers are not especially brand loyal and we are willing to try new things (including ignoring brands that ignore us!).

Research by Information Resources, Inc., shows that Boomers spend $46 BILLION (yes, that's B, as in big bucks) on packaged goods each year. And Unilever (an Edelman client) recently discovered that 60% of its packaged goods were sold to Boomers, even though we represent only 45% of households.

TV Land is among the first to actively go after Boomers as a targeted group. Seems they've discovered that the 40-somethings and 50-somethings made up a large part of their audience, so rather than rely on classic TV shows, TV Land has begun to create original programming that appeals to them. Turns out their year-to-date ad gains are 9%, nothing to sneeze at, for sure. Coincidence? I don't think so.

Age Lessons, a consultancy focused on the Boomer market, said its research shows that 45% of Boomers feel overlooked by marketers.  More enlightening, though, is that fact that 45% of Boomers also say their brand purchases are influenced by advertising. So... do the math.

Now I'm not recommending you run out and start creating ads aimed at Boomers. That won't work either. We aren't looking for you to wave a flag and declare "Look! Boomers! We're here for you!" Skip the warm-fuzzy nostaligic stuff. And for heaven's sake, don't lump us all in the same category.

Above all, remember that we're looking to the future as much as the generations after us. It's not like we have one foot in the grave (and by the way... even if we did... chances are pretty good we'd opt for cremation and have our ashes spread across the campus of our alma mater... but that's a post for another day).