Grandparent Market – Where the Money is for Marketers?

Grandparents.  70 million of them in the US.  They buy $2 trillion worth of goods and services annually.  High levels of income and eduction. And they spend alot of money on their grandchildren.  And a whole lot of them are baby boomers!

The new report from grandparents.com takes a comprehensive look at the grandparent market — who they are, how they spend their money — and why marketers should pay attention.

Here are some of the facts:

  1. Three in every ten adults are grandparents.
  2. Medican age of a first time grandparent is 50 for women and 54 for men.
  3. By 2010, more than half of grandparent’s will be baby boomers.
  4. By 2010, households headed by 55-64 year olds will earn the highest average income, surpassing that of families headed by 45-54 year olds for the first time.
  5. Grandparent spending on grandchildren has grown an average of 7.6% per year since 2000.
  6. Grandparents make 45% of the nation’s cash contributions to nonprofit organizations and account for 42% of all consumer spending on gifts.

If you attended the Boomer summit in Las Vegas you might have had a chance to hear Jerry Shereshewsky talk about this market.  This is new research and well worth a read if this is your target market.

Find the report here

posted by Laura Rossman

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Baby Boomer Retirement Grows Gloomier

The continuing market slide is taking its toll on retirement plans. Three reports released this week give some insight into the financial struggles ahead for baby boomers.

 

  • Four in ten American believe the current economic climate will force them to retire up to 10 years later than expected or not at all, according to a survey from ING Direct. Nearly half said they have “no clue” how much money they need to retire.

 

  • A third of Americans with assets of $500,000 or more said they are either behind in their retirement plans, uncertain about them or have no goals at all.  Yet, the survey from PNC Wealth Management said that those who feel they are prepared, 50% are confident they will still reach their retirement goals.

 

  • Long-term care costs being shouldered by personal savings is 30% higher than originally thought.  And families counting on using money from sale of a house or retirement savings to fund long-term care costs are struggling.  The research from Avalere Health.

 

Advice from affluent retirees to those still in the workforce:  live a healthier life and start planning earlier.

 

How the economic downturn is impacting boomers and their money is one of the topics covered at the What’s Next Boomer Business Summit (www.boomersummit.com) being held March 19 in Las Vegas.

Oldest Baby Boomers and Youngest Differ on Money Issues

How Boomers Differ in Concerns About Money

How Boomers Differ in Concerns About Money

    
Oldest boomers and the youngest boomers differ in their concerns about retirement
The biggest concerns of younger boomers are outliving retirement money and having to work full or part-time.  among the older boomers, the biggest concerns are affording health care and staying productive and useful.  amazingly, a quarter of the older boomers surveyed by MetLife Mature Market Institute said they have no concerns about retirement.
This is just one of the findings of a new report from the MetLife Mature Market Institute (MMMI) called Boomer Bookends:  Insights into the Oldest and Youngest Boomers.  Sandra Timmermann, Director of the MMMI, will join us at the What’s Next Boomer Summit to talk about boomers and money (www.boomersummit.com).
The report compares the leading edge boomers (born in 1946) with the trailing edge boomers (those born in 1964).  Other differences among the oldest (1946) and youngest (1964) boomers:
The youngest boomers disassociate themselves with the term “boomer” and would rather consider themselves Generation X.
The youngest say they will consider themselves old at 71.  Oldest boomers say old is 78.
As part of this trend survey, some of the respondents from last year’s survey were recontacted.  Seventy-one percent of this small group who planned to retire fully at age 62 did not.  of those, 26% reported the current economic situation as the reason.  One in five said they need more money or income.
Read more about the survey results.