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Generational CohortsGenerational Cohorts
Presented by Nicki StajcarIowa Department of Elder Affairs
Statewide Transportation Conference November 1, 2006
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 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
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
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
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
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
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)
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)
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)
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)
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
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
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
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
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
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
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
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
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 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
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
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
Tailored features On-site health and wellness Fitness and therapy Food choices Enabling technologies Lifelong learning Work and voluntarism access
Retirement Housing Consumers
Tailored hobbies and interests Emotional and spiritual wellbeingTransportation Ties with family and friends Guest facilities and amenities Homelike architecture and living Sustainable design
The Cool Cohorts
Chronically cool• Regardless of age,
Boomers continue to think they define the way life and people should be.
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
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
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
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
Most frequent online activities for 50+• Driving directions 56%
• Weather 55%
• Travel information 54%
• Community/local events 35%
• Purchase airline tickets 33%
Trends: Freedom
Fastest growing segment of motorcyclists• Increasing 10% / year
• Nearly 1/3 of Harley riders are 50+
Trends: Self-Actualization
Self-discovery Self-expression Balance Life satisfaction Community Holistic solutions Spirituality
Trends: Community
Communal experiences• Large classes
• Rock concerts
• Communal living
Sense of generational community Group engagement
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
What are you doing in your environment?
What are the challenges?
What can you start doing?