The retirement surge

A recent briefing from MediaPost and the Center for Media Research reminded us that retirement is “booming.”

17.9% of Americans are retired now, a number that has increased by 6% over the past five years, and which will grow even more dramatically as boomers approach retirement age. But the demographic group known as “retirees” isn’t just growing in size. It is growing in individual economic stature.

Today’s retirees look much different than those of a few years ago… they have remarkable spending power. The briefing cites a Media Audit report which indicates that more than 13% of new cars are purchased by retirees. 83% of retirees own the home they live in. And 30% of retired adults have investments exceeding $100,000 in value, a higher share than ever before.
When you think of people who are “approaching retirement age,” do you picture Sylvester Stalone (born 1946, age 62)? Bette Midler (born 1945, age 63)? Jane Fonda (born 1937, age 71)?

Implications: Boomers are changing the face of retirement… if not the very definition of retirement. Boomers, who “came of age” in the 60’s and 70’s… have been life-long fans of experimentation and experiences. When you company introduces or promotes a product or service, do you consider the early-adopter mentality of today’s boomers and retirees? Do you sell features (product attributes) or benefits (lifestyle experiences)? In 2008, “upper demo” doesn’t mean what it used to.

Mike Anderson