A lot has been written about the effects of Baby Boomers retiring en masse over the next couple of decades – on employers, on markets, on healthcare, etc. Now, a new analysis from the Metropolitan Research Center suggests that aging Boomers selling off their homes will lead to the next big crisis in the housing market. Over the last few decades of the 20th Century, Boomers drove demand for single-family homes and accounted for most of that market. As they retire, they will begin to sell those homes but the market for them will be considerably smaller. First, the generation… Read More
Categories: Baby Boomers, Home Ownership, WorkWhile everyone seems focused on capturing the attention of Millennials, the Baby Boomers are still the “most valuable generation,” according to a Nielsen report. Over the next five years, Boomers are expected to account for 50% of all consumer spending and to control 70% of all disposable income, according to Nielsen. Fueled by aging Boomers, the over-50 cohort will account for 50% of the population in 5 years. That age group is growing at 3 times the rate of the coveted 18-49 demographic. Still, it accounts for only 5% of advertising. Boomers stand to inherit $15 trillion over the next… Read More
Categories: Advertising, Baby Boomers, BlogThe two youngest generations, Millennials and Generation X, are the ones most concerned about their spending, saving, and investing, according to a TD Canada Trust survey. In contrast, 80% of Boomers feel they are managing their money well, even if 56% feel they don’t have enough of it. Millennials are most likely (65%) in the survey to worry that they are spending too much, compared with 56% of Xers and 44% of Boomers. Millennials are also most likely (55%) to want to learn more about finance and money management. Meanwhile, Generation X has the most competing financial concerns, including retirement… Read More
Categories: Baby Boomers, Financial Services, Generations, Wealth, WorkThe wealthier the Baby Boomer, the more likely he or she will seek financial advice, according to an analysis by Millionaire Corner. Meanwhile, middle income or “Mass Affluent” (net worth between $100K and $1M) are more likely to self direct their finances. Only a quarter high net worth Boomers (>$5M) self direct their investments even though, as a group, they consider themselves very knowledgeable about finance. Meanwhile, 40% of the Mass Affluent group calls their own financial shots even though only 7% consider themselves “very knowledgeable.” Mass affluent are also the most likely (32%) to use an advisor on an… Read More
Categories: Baby Boomers, Financial Services, WealthAlong with widespread discussion about what happens when all those Boomers retire, a parallel discussion has emerged about what will happen if they don’t. As Boomers reach retirement age, many of them just keep on working. Some can’t afford to retire and some just like their work. Remember, this is the workaholic generation. A debate has begun about what effect the non-retirement of Boomers will have. On one side, some have argued that it will mostly be positive: less demand on retirement systems and more wealth to fuel Boomer consumption, expanding opportunity for everyone. For the other side, Boomers sticking… Read More
Categories: Baby Boomers, Generations, Work, WorkplaceThe disparity in wealth between Baby Boomers and Millennials is changing the demographics of restaurant clientele. In the past, older generations were more apt to cook and eat at home while younger generations preferred the luxury and convenience of eating out. Now the Boomers, a generation that came of age during the explosion of chain restaurants and fast food, dominate the restaurant market even as they near retirement. Meanwhile, Millennials who still like the convenience of dining out don’t have the means to do it. Even as Millennials grow into adulthood, jobs, and careers, the number of them patronizing restaurants… Read More
Categories: Baby Boomers, BlogBack in 2009 when Pew took a look at the generations online, their survey revealed that while Millennials were the Internet’s most avid users, Gen Xers were the biggest online buyers. Four years later, a Forrester study reveals that’s still pretty much the case. According to the survey, Millennials are the most likely to use the internet to shop, with 84% having done so in the last 3 months compared to about 80% of Gen Xers. However, Xers spent the most online, about $561 a piece during the 3 months covered by the study compared with $489 from Millennials and… Read More
Categories: Baby Boomers, Blog, MaturesFollowing the Great Recession, most of the conversation about generational unemployment has focused on Millennials, who have the highest numbers out of work. But many Baby Boomers also lost jobs in the recession’s aftermath (second most among generations). Often higher-paid than younger colleagues, they were the first to go in many cases. Many of them have found that late-career unemployment has challenges that are different from being young and jobless. Too young to retire and too experienced for entry-level work, older Boomer workers tend to stay unemployed longer (55 weeks) than the rest of the unemployed (31 weeks). Boomers are… Read More
Categories: Baby Boomers, Entrepreneurship, Recession EconomySince their emergence as the youth market decades ago, Baby Boomers have expanded the consumer demand of each life stage or demographic they’ve passed through. Always avid consumers, Boomers promise to do the same at the senior stage, according to a recent analysis by McClatchy. While the discussion of Boomer aging has centered the effects of their retirements and entitlement demands, others see a key consumer generation entering a whole new market phase. “It’s only in Washington that 100 million people are viewed as an unaffordable cost and financial burden,” said an AARP exec of the new seniors. “In the… Read More
Categories: Baby Boomers, Blog, WorkWhile there are many threats to the performance of equity markets, the onslaught of Baby Boomer retirements will not be one of them, according to financial analysts. While events like the “fiscal cliff” or downturns like the one in 2008 will continue to affect market performance, the fear that a mass of retiring Boomers pulling their money out of equities would crash the markets is unfounded. While large numbers of Baby Boomers have begun to reach retirement age, their retirements should have little impact on the value of equities. For one, those retirements will be spread over 25 to 30… Read More
Categories: Baby Boomers, Financial Services, Work