It’s often said that people eventually end up like their parents, but this seemingly does not apply to the baby boomer generation.
Now in their 50s, they are travelling more, spending more, having more fun and generally have loftier expectations than their parents according to the Future Foundation, which has researched the spending habits of the over 50s over the past half a century.
And the change in spending habits and increase in size – forecast to be 40% of the population by 2027, up from the present 34% – of this demographic group has significant implications for businesses.
The population might be getting older, but this shouldn’t panic many leisure industries that have traditionally catered for younger adults. Older people today have the income and the inclination to enjoy themselves just as much as their children. Over 65s spend three hours longer a week on hobbies and sport than their forebears 50 years ago.
In line with the rest of society, over 50s are certainly more health-conscious than their predecessors. They do as much sport and exercise as 16-44 year olds did 50 years ago and four times as much as the over 50s of that era.
Live a little
Expenditure by the over 50s on holidays has increased six-fold since the late 1950s and they are just as likely to spend a month in Australia as two weeks in benidorm – they made over 26,600 trips that last from six months to a year and more than 121,000 trips that lasted between three and six months over the last year.
Having lived through war their parents learnt to be frugal, but baby boomers themselves have unprecedented income levels and think nothing of splashing out on luxury items.
Baby boomers are established on the housing ladder, they’ve paid off their mortgages and their kids have grown up. Now they’re looking to live a little.
Young adults on the other hand are largely unable to get on the housing ladder, burdened with credit card and student debt, and anxious about job security as manufacturing declines, companies continue to outsource key functions and proliferating service sector ‘McJobs’ offer scant consolation.
Nowadays, even though companies spend so much time and money trying to ape the amorphous and elusive styles, attitudes and language of youth culture, the 16-24 age group actually spends on average about two hours a week less time shopping than over 65s.
“While our modern society is apparently so biased towards youth culture, a more radical and transformative change has occurred amongst the over 50s that leaves teenagers lagging behind,” says psychologist Martin Lloyd-Elliott.
“Today 50 is closer to the middle of our life than to its end with many economic and psychological factors bringing this change.
“Psychologically, there has been a shift from a ‘closing down’ expectation for the second half of life towards a much more optimistic ‘opening up of new doors’ spirit of good times ahead.”
Growing in number and with more money to spend and a greater willingness to spend it, the ‘grey’ demographic will preoccupy marketeers more and more as time passes. If they have any sense.
