Generational Cohorts

1
Generational Cohorts

• Presented by Nicki Stajcar
• Iowa Department of Elder Affairs
• Statewide Transportation Conference
• November 1, 2006

2
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

3
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
4
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, womens
  movement, protests and riots
• Key characteristics experimental,
  individualistic, free spirited, social cause
  oriented

Schuman and Scott, 1989 others
5
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
6
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
7
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
8
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
9
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
10
Younger Boomers (1956 - 64)

• Priority children
• 69 own their own homes
• Spending
• 11 gt avg. on pets, toys, playground equipment
• 38 gt avg. on mortgage payments
• 10 lt avg. on life and personal insurances

American Demographics, 2002 US Bureau of Labor
Statistics, 2003
11
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
12
Older Boomers (1946 - 55)

• Spending
• 11 lt avg. on childrens items
• 50 gt avg. on home upgrades and products
• 11-13 gt avg. on adult apparel
• 23 gt avg. on hotels and vacation homes
• 20 gt avg. on life and personal insurances

American Demographics, 2002 US Bureau of Labor
Statistics, 2003
13
A Comparison
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

• 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

14
Marital Status

• 68.8 married
• 14.2 divorced (gt prior generations)
• 12.6 never married (gt prior generations)
• 2.9 separated
• 1.6 widowed

US Census Bureau, 2000
15
Education

• Boomers have a higher level of education than any
  prior generations
• 88.8 completed high school
• 28.5 have Bachelors Degree or more

US Census Bureau, 2000
16
Housing
35-44 45-54 55-74
Homeowner 69 76 82
Mortgage 57 56 44
No mortgage 12 20 38
Renter 31 24 18
MetLife Mature Market Institute Analysis, 2005
17
Family Life

• In lt 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
18
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)

19
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

20
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

21
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 arent 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

22
Retirement Housing Consumers

• 55 plan to move when retired
• 51 will move gt 3 hours away
• Paramount issues
• 62 want less maintenance
• 23 want smaller home

23
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 (gt twice the of those 59 70)

24
Retirement Housing Consumers

• Tailored features
• On-site health and wellness
• Fitness and therapy
• Food choices
• Enabling technologies
• Lifelong learning
• Work and voluntarism access

25
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

26
The Cool Cohorts

• Chronically cool
• Regardless of age, Boomers continue to think they
  define the way life and people should be.

27
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

28
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

29
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

30
Media Internet

• By 2009, over ½ of all heads of household will be
  gt 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

31
Media Internet

• Most frequent online activities for 50
• Driving directions 56
• Weather 55
• Travel information 54
• Community/local events 35
• Purchase airline tickets 33

32
Trends Freedom

• Fastest growing segment of motorcyclists
• Increasing 10 / year
• Nearly 1/3 of Harley riders are 50

33
Trends Self-Actualization

• Self-discovery
• Self-expression
• Balance
• Life satisfaction
• Community
• Holistic solutions
• Spirituality

34
Trends Community

• Communal experiences
• Large classes
• Rock concerts
• Communal living
• Sense of generational community
• Group engagement

35
Trends Childrens Approval

• Childrens 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

36
Targeting Your Boomer Consumers

• What are you doing in your environment?
• What are the challenges?
• What can you start doing?