Generational Cohorts
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Generational Cohorts Generational Cohorts Presentation Transcript

  • Generational Cohorts Presented by Nicki Stajcar Iowa 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 View slide
  • 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 View slide
  • 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 MetLife Mature Market Institute Analysis, 2005 18% 24% 31% Renter 38% 20% 12% No mortgage 44% 56% 57% Mortgage 82% 76% 69% Homeowner 55-74 45-54 35-44
  • 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 wellbeing
    • Transportation
    • 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?