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Generational Cohorts

Generational Cohorts. Presented by Nicki Stajcar Iowa Department of Elder Affairs Statewide Transportation Conference November 1, 2006. Cohort Model. Generational Cohort Individuals who experience same event "What world events over the past 50 years were especially important to you?"

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Generational Cohorts

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  1. Generational Cohorts Presented by Nicki Stajcar Iowa Department of Elder Affairs Statewide Transportation Conference November 1, 2006

  2. Cohort Model • Generational Cohort • Individuals who experience same event • "What world events over the past 50 years were especially important to you?" • Ages of respondents correlated with importance rankings • Seven distinct cohorts

  3. Cohort Model • Depression cohort (1912 - 1921) • Memorable events: The Great Depression, high levels of unemployment, poverty, lack of creature comforts, financial uncertainty • Key characteristics: strive for financial security, risk averse, waste not want not attitude, strive for comfort • WWII cohort (1922 - 1927) • Memorable events: men leaving to go to war and many not returning, the personal experience of the war, women working in factories, focus on defeating a common enemy • Key characteristics: the nobility of sacrifice for the common good, patriotism, team player • Post-war cohort (1928 - 1945) • Memorable events: sustained economic growth, social tranquility, Cold War, McCarthyism • Key characteristics: conformity, conservatism, traditional family values Schuman and Scott, 1989

  4. Cohort Model • Leading Edge Baby Boomer (1946 - 1954/55) • Memorable events: assassinations, political unrest, walk on moon, Vietnam War, social and drug experimentation, sexual freedom, civil rights movement, environmental movement, women’s movement, protests and riots • Key characteristics: experimental, individualistic, free spirited, social cause oriented Schuman and Scott, 1989; others

  5. Cohort Model • Trailing Edge Baby Boomer (1955/56 - 1964/65) • Memorable events: Watergate, Nixon resignation, defeat in Vietnam, oil embargo, raging inflation, gasoline shortages, economic competition • Key characteristics: less optimistic, distrust of government, general cynicism, credit/debt orientation Schuman and Scott, 1989; others

  6. Cohort Model • Generation X cohort (1965 - 1976) • Memorable events: challenger explosion, Iran-Contra, social malaise, Reaganomics, AIDS, safe sex, fall of Berlin Wall, single parent families • Key characteristics: quest for emotional security, independent, informal • N Generation cohort (1977 - 1990s) • Memorable events: rise of the Internet, 9-11 terrorist attack, cultural diversity, 2 wars in Iraq • Key characteristics: quest for physical security and safety, patriotism, heightened fears, acceptance of change Schuman and Scott, 1989

  7. Boomers Defined • Born 1946 – 1964 (age 42 - 60 today) • Born or immigrated to US • Over 26% of the population • 76 - 78 million persons • 48% of households • 34 million households MetLife Mature Market Institute Analysis, 2005

  8. Boomers Defined • Born 1946 – 1964 • 49% male • 51% female • By 2030: 66 – 84 yrs old • By 2030: 20% of the US population MetLife Mature Market Institute Analysis, 2005

  9. Younger Boomers (1956 - 64) • 23.9 million households • Purchasing power: $1.1 trillion • Avg. # earners in household: 1.7 • Avg. annual household income: $56,500 • Avg. annual spending per household: $45,149 (80% of income) American Demographics, 2002; US Bureau of Labor Statistics, 2003

  10. Younger Boomers (1956 - 64) • Priority: children • 69% own their own homes • Spending • 11% > avg. on pets, toys, playground equipment • 38% > avg. on mortgage payments • 10% < avg. on life and personal insurances American Demographics, 2002; US Bureau of Labor Statistics, 2003

  11. Older Boomers (1946 - 55) • 21.9 million households • Purchasing power: $1 trillion • Avg. # earners in household: 1.8 • Avg. annual household income: $58,889 • Avg. annual spending per household: $46,160 (78% of income) American Demographics, 2002; US Bureau of Labor Statistics, 2003

  12. Older Boomers (1946 - 55) • Spending • 11% < avg. on children’s items • 50% > avg. on home upgrades and products • 11-13% > avg. on adult apparel • 23% > avg. on hotels and vacation homes • 20% > avg. on life and personal insurances American Demographics, 2002; US Bureau of Labor Statistics, 2003

  13. A Comparison Older Boomers: Current ages: 51 - 60 21.9 million households Purchasing power: $1 trillion Avg. # earners in household: 1.8 Avg. annual household income: $58,889 Avg. annual spending per household: $46,160 Spending as % of income: 78% Younger Boomers: Current ages: 42 - 50 23.9 million households Purchasing power: $1.1 trillion Avg. # earners in household: 1.7 Avg. annual household income: $56,500 Avg. annual spending per household: $45,149 Spending as % of income: 80%

  14. Marital Status • 68.8% married • 14.2% divorced (> prior generations) • 12.6% never married (> prior generations) • 2.9% separated • 1.6% widowed US Census Bureau, 2000

  15. Education • Boomers have a higher level of education than any prior generations • 88.8% completed high school • 28.5% have Bachelor’s Degree or more US Census Bureau, 2000

  16. Housing MetLife Mature Market Institute Analysis, 2005

  17. Family Life • In < a decade, Boomers will comprise 52% of all grandparents • By 2010, Boomer grandparents will grow from 18 million to 37 million JWT Mature Market Group, 2006

  18. Family Life • Caregivers are typically females, 45+, with children at home and key influencers in health care and senior housing decisions • 2/3 of all caregivers are Boomers • Age cohort with the highest percentage of caregivers is 45 - 49 (13%)

  19. Retirement Lifestyles • 80% will work at least part-time • 30% plan to start own business • Second or third careers • Delayed retirement • Nearly 1/3 had children later and may still pay tuition • Desire to maintain present lifestyle • Savings of $2.5 million to maintain current spending • Inadequate retirement savings

  20. Travel & Tourism Consumers • Extensive travel • Immersive learning (“Edutainment”) • Peak experiences • Heritage tourism • Cultural tourism • Rock and Roll Hall of Fame • Nostalgic coming-of-age tourism • A “Beatles London” tour

  21. Financial Services Consumers • Only 40% of workers born 1951 – 60 are on track to cover basic expenses in retirement • Those waiting until their 40s must save 25 – 35% of income • 78% aren’t very satisfied with personal finances • 70% have not met their financial expectations • Getting out of debt is #1 goal of empty nesters • Boomers will work longer

  22. Retirement Housing Consumers • 55% plan to move when retired • 51% will move > 3 hours away • Paramount issues • 62% want less maintenance • 23% want smaller home

  23. Retirement Housing Consumers • 26% will consider Active Adult Community • 30% prefer urban location • 29% want local natural benefits • 22% prefer AAC within multi-generational development (> twice the % of those 59 – 70)

  24. Retirement Housing Consumers • Tailored features • On-site health and wellness • Fitness and therapy • Food choices • Enabling technologies • Lifelong learning • Work and voluntarism access

  25. Retirement Housing Consumers • Tailored hobbies and interests • Emotional and spiritual wellbeing • Transportation • Ties with family and friends • Guest facilities and amenities • Homelike architecture and living • Sustainable design

  26. The Cool Cohorts • Chronically cool • Regardless of age, Boomers continue to think they define the way life and people should be.

  27. Media: TV • First generation to grow up with TV • Adults 35 – 64 average 248 minutes/day • Adults 18 – 34 average 226 minutes/day • Viewership increases with age • Prefer more intelligent / sophisticated programming than earlier generations

  28. Media: TV • Older boomers • CSI • The West Wing • ER • News programs • Lifetime cable network • Science fiction • Younger boomers • ER • Friends • Survivor • Reality shows • Science fiction

  29. Media: Radio • Listen to radio average of 21 hours / week • 2 hours more / week than other adults • Older boomers • News / talk #1 • Rock #5 • Younger boomers • Adult contemporary #1 • Rock #2

  30. Media: Internet • By 2009, over ½ of all heads of household will be > 50 • Worked at least ½ their careers on computers • Children and grandchildren are online and bring older loved ones along • The mature market is the fastest growing segment on the internet

  31. Media: Internet • Most frequent online activities for 50+ • Driving directions 56% • Weather 55% • Travel information 54% • Community/local events 35% • Purchase airline tickets 33%

  32. Trends: Freedom • Fastest growing segment of motorcyclists • Increasing 10% / year • Nearly 1/3 of Harley riders are 50+

  33. Trends: Self-Actualization • Self-discovery • Self-expression • Balance • Life satisfaction • Community • Holistic solutions • Spirituality

  34. Trends: Community • Communal experiences • Large classes • Rock concerts • Communal living • Sense of generational community • Group engagement

  35. Trends: Children’s Approval • Children’s approval is more important to Boomers than any previous generation • 39% hold family & friends as the most important life area (29% for older generation) • Children are “influencers” • Consumer roles

  36. Targeting Your Boomer Consumers • What are you doing in your environment? • What are the challenges? • What can you start doing?

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