Mature Market Experts Stat of The Day: Grandparents rock!

Grandparents are spending some serious cash on their grandkids.

Grandparents are a major consumer market. There were 69 million U.S. grandparents in 2000, a number expected to grow to 80 million by 2010, and they spend a median of $489 per year on their grandchildren, about $30 billion annually.Source: AARP Special Study, 2002

U.S grandparents and the mature market:

- Over 75% of the 50+ market are grandparents

- Average age of the first-time grandparent is 47

- Over 70 million grandparents in the U.S. (More than the entire population in the U.K.)

- 4,000 Baby Boomers become grandparents every day

- The 50+ population is projected to grow to 23% in the next ten years while growth in the 18-49 segment will be flat

Source: GRAND Magazine, www.GRANDMagazine.com

 

 

 

 

 

Mature Market Experts Stat of The Day: Seniors Buy Cars

 

The mature market keeps buying cars!

Seniors purchase more than 40% of all new cars and over 80% of the luxury new cars.

Source: U.S. Census Bureau

While the car is becoming increasingly “intelligent,” with innovative applications of information technology to assist younger and older drivers alike, these novel systems present their own problems. A major challenge for the auto industry is how to develop and integrate these innovations into the car of tomorrow with drivers who have decades of experience driving the car of today.

Source: Joseph F. Coughlin, in: Generations Winter 2004-2005

 

Mature Market Experts Stat of The Day: Disability Among Seniors

        Disability among the mature market: 42% of the population 65 and over reported some type of long-lasting condition or disability in 2000. 32% of people 65 to 74 reported at least one disability, in contrast with 72% of people 85 and over.

Source: U.S. Census 2000, We the People: Aging in the U.S.

Mature Market Experts Stat of The Day: Food

 

The mature market spends more money on bakery items than any other age group.

        Seniors 65+ spend more money than younger people on most food groups. These include cereal and bakery, dairy, fruit and vegetables, and miscellaneous prepared foods. Interestingly, they lag in spending on meats, poultry, fish and eggs.

Source: USDA, Economic Research Service analysis of Bureau of Labor Statistics’ 2004 Consumer Expenditure Survey.

 

 

 

 

 

 

Mature Market Experts Stat of The Day: RV Ownership

Big wheels keep on turning . . . at least with the mature market.

One in ten RVs is owned by a Baby Boomer. Overall ownership numbers are impressive with nearly one in 12 U.S. vehicle-owning households now owning an RV. That’s nearly 8 million households –with industry sales exceeding $44 billion.

Source: Recreation Vehicle Industry Association, www.rvia.org

Mature Market Experts Stat of The Day: What Do They Buy?

        What’s the mature market buying? Younger boomers spend 11 percent more than average (among the population as a whole) on pets, toys, and playground equipment. Mortgage payments consume 38 percent more than average of younger boomers’ budgets, and they spend 10 percent less than average on life and other personal insurance.

        Older boomers spend 11 percent less than average on children’s items, but 50 percent more on china and silver, to upgrade their homes. They also spend 13 percent more than average on women’s apparel and 11 percent more on men’s apparel. In addition, older boomers spend 23 percent more than average on hotels and vacation homes and 20 percent more than average on life insurance and personal insurance.

Source: MetLife profile of American baby boomers

 

Mature Market Stat of The Day: Sources of Income for Seniors 55+

        For seniors 55+, social security accounts for  40% of their income; followed by earnings (25%), pensions (19%), asset income (14%), and “other” at 2%.

Source:  Federal Interagency Forum on Aging-Related Statistics

Note: In my 15+ years of dealing with the 65+ market, the only “pocket” they will pull money from for daily expenses is social security. This is one of the reasons less than 3% of the age and income qualified mature market ever makes the move to a retirement community. The value of the home and income-earning assets is viewed as “untouchable.”

Mature Market Experts Stat of The Day: 65+ Seniors with Arthritis

        The number of U.S. consumers age 65 or older with doctor-diagnosed arthritis will more than double, from 15.7 million in 2002 to 33.3 million in 2030.

Source: The Centers for Disease Control

Note: Let me state the obvious, most companies still don’t get this. Designing packaging to accommodate this market is a good idea. Have you tried to get the wrapping off a new CD case lately? Also, a great publication that really tackles the challenges of this disease is Arthritis Today published by my good friends at The Arthritis Foundation.

 

Mature Market Stat of The Day: Workforce over 55+

        Right now about 15% of the workforce is 55+. By 2015 that number grows to 20%.

        By 2022 you’ll have to be 67 to receive full social security (although you can still elect to receive partial benefits).

Source:  American Association of Retired Persons (AARP), www.aarp.org.

Mature Market Experts Stat of The Day: States with the highest 65+ Population

        Most people guess that Florida has the most seniors over the age of 65+. Nope . . . although they do have the highest 65+ people proportionally to the rest of their population (18%). Here’s how the top seven rank:

        California – 4 million, followed by Florida (3 million), then New York (2.5 million), Texas (2.2 million), Pennsylvania (1.9 million), Ohio (1.5 million), and Illinois (1.5 million).

        Source: U.S Census Bureau, http://www.census.gov/