Over 55s represent just 26 per cent of the Australian population, but hold more than 50 per cent of the household assets.
Of nearly 24 million Australians, 3.6 million who have worked at some stage, are currently living in retirement. And an additional 5 million Australians are expected to transition into retirement in the next 10 years.
It’s a huge market. Retirement is indeed the new black.
Recent Roy Morgan research notes that the over 55s represent just 26 per cent of the Australian population, but hold more than 50 per cent of the household assets.
So the opportunity exists for companies keen to target the cohort with the most discretionary cash. Those who fully serve the needs of the 5.5 million Australian baby boomers will be those whose profits increase.
The specific sectors that have the biggest opportunities are financial services, housing, fast moving consumer goods, health products and services, entertainment and of course, the big one, travel. But when YourLifeChoices surveys its 140,000 members on the brands they trust the most and those which respect them as potential consumers, most members tell us that advertisers are not cutting through. Corny, insulting ‘old fogey’ creative and an unwillingness to embrace the fact that older age is not seen as a negative by older people is preventing many advertisers’ material from converting their target market. In a previous YourLifechoices 50+ consumer online – media consumption and buying intentions survey, which received 5,400 responses, the word ‘patronising’ was the one that respondents said best described advertising directed at their age group. Boomers told us that they regularly purchase vitamins and supplements, glasses, insurance, financial services including shares, technology, electronics and travel online. And a massive 88 per cent start their research for these products online, seeking value for money in the first instance. But few advertisers are trusted or considered to be respectful of these mature consumers’ life stage and needs.
So who is doing a good job? Those companies which are age-neutral and concentrate on information about their product or service rather than an over-focus on age or life stage are the ones which are enjoying growing profits from this influential and affluent consumer group. They are the ones which celebrate the diversity of older Australians and share the features of relevant products. It’s hardly rocket science, but it works.
Want to reach a highly engaged boomer audience? And find out which companies are successful in this market?
YourLifeChoices is Australia’s longest-established retirement website with the largest subscriber email database. Find out more by contacting us at [email protected].
*ABS Multipurpose Household Survey (MPHS) based on 9.1 million persons aged 45 or over who had at some time worked for two weeks or more.
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