In this life stage,
there is a very good chance that the careers in a household are very well
established. People in this age group
are often earning at a higher level than at any other time in their lives. (Of course, some households have had to
adjust that relative income due to recession-related job loss.) Still, many people in this life stage are
working in professional occupations (doctor, lawyer, engineer), as upper
managers and executives, or have been in a blue-collar job long enough that
they could be called, “Blue Chip Blues.”
Meanwhile, this
pinnacle income is happening just as the fixed expenses in their lives are
beginning to fall. Think about this
combination of events: By now you have a
solid career, lots of experience, and you’re probably earning more money than
ever… and it’s happening just about the time you’ve pared-down your consumer
debt, kids are leaving home, and you may even be close to paying off your
mortgage.
True, there is
probably college tuition to worry about, and helping young adult children get
their feet on the ground… and a lot of folks in this life stage are starting to
realize they have some catching-up to do with their investments and retirement
savings. But each of these expenditures
is nonetheless, “discretionary.” That’s
the best way to describe the Age of Increased Equity.
Marketing Implications: Life for many people age 45-59 looks a bit
different today that it did just five or six years ago. Their post-recession realities have them
revisiting how much equity they have in their home and other hard-earned
investments. (A lot of us have some
catching-up to do!) They’re helping
adult children get on their feet under economic circumstances that seem more
difficult than when they themselves were that age. (I don’t mean to speak for all Baby Boomers,
but when I reminisce, I’m more inclined to think of things like the moon
landing and rock & roll, rather than the oil embargo of the mid-seventies
and the stagflation of the late 70s and other woes.)
Few people age 45-59
were born into technology… they’ve had to adapt. They’re competing with a younger labor force
that has never known a world without the personal computer. They’re likely to plan on working longer to
compensate for shrunken investments and the fear that social security won’t
survive their full lifetime.
In spite of all the
challenges they face, the Age of Increased Equity has earned the right to
indulge. Nicer cars. Nicer homes.
And not just travel… but experiences.
Is this a group you
are (or should be) selling to? Have you
stopped to think about—or better yet, talk to them about—what their preferences
and priorities are?
Mike Anderson, for The Marketing Mind consumer trends blog, service of
The Center for Sales Strategy.
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