Published on December 27, 2007
Generational Cohorts: Generational Cohorts Presented by Nicki Stajcar Iowa Department of Elder Affairs Statewide Transportation Conference November 1, 2006 Cohort Model: 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 Cohort Model: 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 Cohort Model: 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 Cohort Model: 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 Cohort Model: 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 Boomers Defined: 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 Boomers Defined: 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 Younger Boomers (1956 - 64): 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 Younger Boomers (1956 - 64): 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 Older Boomers (1946 - 55): 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 Older Boomers (1946 - 55): 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 A Comparison: A Comparison 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% 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% Marital Status: 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 Education: 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 Housing: Housing MetLife Mature Market Institute Analysis, 2005 Family Life: 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 Family Life: 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%) Retirement Lifestyles: 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 Travel & Tourism Consumers: 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 Financial Services Consumers: 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 Retirement Housing Consumers: 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 Retirement Housing Consumers: 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) Retirement Housing Consumers: Retirement Housing Consumers Tailored features On-site health and wellness Fitness and therapy Food choices Enabling technologies Lifelong learning Work and voluntarism access Retirement Housing Consumers: 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 The Cool Cohorts: The Cool Cohorts Chronically cool Regardless of age, Boomers continue to think they define the way life and people should be. Media: TV: 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 Media: TV: 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 Media: Radio: 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 Media: Internet: 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 Media: Internet: Media: Internet Most frequent online activities for 50+ Driving directions 56% Weather 55% Travel information 54% Community/local events 35% Purchase airline tickets 33% Trends: Freedom: Trends: Freedom Fastest growing segment of motorcyclists Increasing 10% / year Nearly 1/3 of Harley riders are 50+ Trends: Self-Actualization: Trends: Self-Actualization Self-discovery Self-expression Balance Life satisfaction Community Holistic solutions Spirituality Trends: Community: Trends: Community Communal experiences Large classes Rock concerts Communal living Sense of generational community Group engagement Trends: Children’s Approval: 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 Targeting Your Boomer Consumers: Targeting Your Boomer Consumers What are you doing in your environment? What are the challenges? What can you start doing?