Generational Cohorts Presented by Nicki Stajcar Iowa Department of Elder Affairs Statewide Transportation Conference Novem...
Cohort Model <ul><li>Generational Cohort </li></ul><ul><ul><li>Individuals who experience same event  </li></ul></ul><ul><...
Cohort Model <ul><li>Depression cohort  (1912 - 1921)  </li></ul><ul><ul><li>Memorable events: The Great Depression, high ...
Cohort Model <ul><li>Leading Edge Baby Boomer </li></ul><ul><li>(1946 - 1954/55)  </li></ul><ul><ul><li>Memorable events: ...
Cohort Model <ul><li>Trailing Edge Baby Boomer </li></ul><ul><li>(1955/56 - 1964/65)  </li></ul><ul><ul><li>Memorable even...
Cohort Model <ul><li>Generation X cohort  (1965 - 1976)  </li></ul><ul><ul><li>Memorable events: challenger explosion, Ira...
Boomers Defined <ul><li>Born 1946 – 1964  (age 42 - 60 today) </li></ul><ul><ul><li>Born or immigrated to US </li></ul></u...
Boomers Defined <ul><li>Born 1946 – 1964 </li></ul><ul><ul><li>49% male </li></ul></ul><ul><ul><li>51% female </li></ul></...
Younger Boomers  (1956 - 64) <ul><li>23.9 million households </li></ul><ul><li>Purchasing power: $1.1 trillion </li></ul><...
Younger Boomers  (1956 - 64) <ul><li>Priority: children </li></ul><ul><li>69% own their own homes  </li></ul><ul><li>Spend...
Older Boomers  (1946 - 55) <ul><li>21.9 million households </li></ul><ul><li>Purchasing power: $1 trillion </li></ul><ul><...
Older Boomers  (1946 - 55) <ul><li>Spending  </li></ul><ul><ul><li>11% < avg. on children’s items </li></ul></ul><ul><ul><...
A Comparison <ul><li>Younger Boomers: </li></ul><ul><li>Current ages: 42 - 50 </li></ul><ul><li>23.9 million households </...
Marital Status <ul><li>68.8% married  </li></ul><ul><li>14.2% divorced  (> prior generations) </li></ul><ul><li>12.6% neve...
Education <ul><li>Boomers have a higher level of education than any prior generations </li></ul><ul><ul><li>88.8% complete...
Housing MetLife Mature Market Institute Analysis, 2005  18% 24% 31% Renter 38% 20% 12% No mortgage 44% 56% 57% Mortgage 82...
Family Life <ul><li>In < a decade, Boomers will comprise 52% of all grandparents </li></ul><ul><li>By 2010, Boomer grandpa...
Family Life <ul><li>Caregivers are typically females, 45+, with children at home and key influencers in health care and se...
Retirement Lifestyles <ul><li>80% will work at least part-time </li></ul><ul><li>30% plan to start own business </li></ul>...
Travel & Tourism Consumers <ul><li>Extensive travel </li></ul><ul><li>Immersive learning  (“Edutainment”) </li></ul><ul><l...
Financial Services Consumers <ul><li>Only 40% of workers born 1951 – 60 are on track to cover  basic  expenses in retireme...
Retirement Housing Consumers <ul><li>55% plan to move when retired </li></ul><ul><li>51% will move > 3 hours away </li></u...
Retirement Housing Consumers <ul><li>26% will consider Active Adult Community </li></ul><ul><ul><li>30% prefer urban locat...
Retirement Housing Consumers <ul><li>Tailored features </li></ul><ul><li>On-site health and wellness </li></ul><ul><li>Fit...
Retirement Housing Consumers <ul><li>Tailored hobbies and interests </li></ul><ul><li>Emotional and spiritual wellbeing </...
The Cool Cohorts <ul><li>Chronically cool </li></ul><ul><ul><li>Regardless of age, Boomers continue to think they define t...
Media: TV <ul><li>First generation to grow up with TV </li></ul><ul><ul><li>Adults 35 – 64 average 248 minutes/day </li></...
Media: TV <ul><li>Older boomers </li></ul><ul><ul><li>CSI </li></ul></ul><ul><ul><li>The West Wing </li></ul></ul><ul><ul>...
Media: Radio <ul><li>Listen to radio average of 21 hours / week </li></ul><ul><li>2 hours more / week than other adults </...
Media: Internet <ul><li>By 2009, over ½ of all heads of household will be > 50 </li></ul><ul><li>Worked at least ½ their c...
Media: Internet <ul><li>Most frequent online activities for 50+ </li></ul><ul><ul><li>Driving directions 56% </li></ul></u...
Trends: Freedom <ul><li>Fastest growing segment of motorcyclists </li></ul><ul><ul><li>Increasing 10% / year </li></ul></u...
Trends: Self-Actualization <ul><li>Self-discovery </li></ul><ul><li>Self-expression </li></ul><ul><li>Balance </li></ul><u...
Trends: Community <ul><li>Communal experiences </li></ul><ul><ul><li>Large classes </li></ul></ul><ul><ul><li>Rock concert...
Trends: Children’s Approval <ul><li>Children’s approval is more important to Boomers than any previous generation </li></u...
Targeting Your Boomer Consumers <ul><li>What are you doing in your  environment ? </li></ul><ul><li>What are the  challeng...
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Generational Cohorts

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Generational Cohorts

  1. 1. Generational Cohorts Presented by Nicki Stajcar Iowa Department of Elder Affairs Statewide Transportation Conference November 1, 2006
  2. 2. Cohort Model <ul><li>Generational Cohort </li></ul><ul><ul><li>Individuals who experience same event </li></ul></ul><ul><ul><li>&quot;What world events over the past 50 years were especially important to you?&quot; </li></ul></ul><ul><ul><li>Ages of respondents correlated with importance rankings </li></ul></ul><ul><ul><li>Seven distinct cohorts </li></ul></ul>
  3. 3. Cohort Model <ul><li>Depression cohort (1912 - 1921) </li></ul><ul><ul><li>Memorable events: The Great Depression, high levels of unemployment, poverty, lack of creature comforts, financial uncertainty </li></ul></ul><ul><ul><li>Key characteristics: strive for financial security, risk averse, waste not want not attitude, strive for comfort </li></ul></ul><ul><li>WWII cohort (1922 - 1927) </li></ul><ul><ul><li>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 </li></ul></ul><ul><ul><li>Key characteristics: the nobility of sacrifice for the common good, patriotism, team player </li></ul></ul><ul><li>Post-war cohort (1928 - 1945) </li></ul><ul><ul><li>Memorable events: sustained economic growth, social tranquility, Cold War, McCarthyism </li></ul></ul><ul><ul><li>Key characteristics: conformity, conservatism, traditional family values </li></ul></ul>Schuman and Scott, 1989
  4. 4. Cohort Model <ul><li>Leading Edge Baby Boomer </li></ul><ul><li>(1946 - 1954/55) </li></ul><ul><ul><li>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 </li></ul></ul><ul><ul><li>Key characteristics: experimental, individualistic, free spirited, social cause oriented </li></ul></ul>Schuman and Scott, 1989; others
  5. 5. Cohort Model <ul><li>Trailing Edge Baby Boomer </li></ul><ul><li>(1955/56 - 1964/65) </li></ul><ul><ul><li>Memorable events: Watergate, Nixon resignation, defeat in Vietnam, oil embargo, raging inflation, gasoline shortages, economic competition </li></ul></ul><ul><ul><li>Key characteristics: less optimistic, distrust of government, general cynicism, credit/debt orientation </li></ul></ul>Schuman and Scott, 1989; others
  6. 6. Cohort Model <ul><li>Generation X cohort (1965 - 1976) </li></ul><ul><ul><li>Memorable events: challenger explosion, Iran-Contra, social malaise, Reaganomics, AIDS, safe sex, fall of Berlin Wall, single parent families </li></ul></ul><ul><ul><li>Key characteristics: quest for emotional security, independent, informal </li></ul></ul><ul><li>N Generation cohort (1977 - 1990s) </li></ul><ul><ul><li>Memorable events: rise of the Internet, 9-11 terrorist attack, cultural diversity, 2 wars in Iraq </li></ul></ul><ul><ul><li>Key characteristics: quest for physical security and safety, patriotism, heightened fears, acceptance of change </li></ul></ul>Schuman and Scott, 1989
  7. 7. Boomers Defined <ul><li>Born 1946 – 1964 (age 42 - 60 today) </li></ul><ul><ul><li>Born or immigrated to US </li></ul></ul><ul><ul><li>Over 26% of the population </li></ul></ul><ul><ul><li>76 - 78 million persons </li></ul></ul><ul><ul><li>48% of households </li></ul></ul><ul><ul><li>34 million households </li></ul></ul>MetLife Mature Market Institute Analysis, 2005
  8. 8. Boomers Defined <ul><li>Born 1946 – 1964 </li></ul><ul><ul><li>49% male </li></ul></ul><ul><ul><li>51% female </li></ul></ul><ul><ul><li>By 2030: 66 – 84 yrs old </li></ul></ul><ul><ul><li>By 2030: 20% of the US population </li></ul></ul>MetLife Mature Market Institute Analysis, 2005
  9. 9. Younger Boomers (1956 - 64) <ul><li>23.9 million households </li></ul><ul><li>Purchasing power: $1.1 trillion </li></ul><ul><li>Avg. # earners in household: 1.7 </li></ul><ul><li>Avg. annual household income: $56,500 </li></ul><ul><li>Avg. annual spending per household: $45,149 (80% of income) </li></ul>American Demographics, 2002; US Bureau of Labor Statistics, 2003
  10. 10. Younger Boomers (1956 - 64) <ul><li>Priority: children </li></ul><ul><li>69% own their own homes </li></ul><ul><li>Spending </li></ul><ul><ul><li>11% > avg. on pets, toys, playground equipment </li></ul></ul><ul><ul><li>38% > avg. on mortgage payments </li></ul></ul><ul><ul><li>10% < avg. on life and personal insurances </li></ul></ul>American Demographics, 2002; US Bureau of Labor Statistics, 2003
  11. 11. Older Boomers (1946 - 55) <ul><li>21.9 million households </li></ul><ul><li>Purchasing power: $1 trillion </li></ul><ul><li>Avg. # earners in household: 1.8 </li></ul><ul><li>Avg. annual household income: $58,889 </li></ul><ul><li>Avg. annual spending per household: $46,160 (78% of income) </li></ul>American Demographics, 2002; US Bureau of Labor Statistics, 2003
  12. 12. Older Boomers (1946 - 55) <ul><li>Spending </li></ul><ul><ul><li>11% < avg. on children’s items </li></ul></ul><ul><ul><li>50% > avg. on home upgrades and products </li></ul></ul><ul><ul><li>11-13% > avg. on adult apparel </li></ul></ul><ul><ul><li>23% > avg. on hotels and vacation homes </li></ul></ul><ul><ul><li>20% > avg. on life and personal insurances </li></ul></ul>American Demographics, 2002; US Bureau of Labor Statistics, 2003
  13. 13. A Comparison <ul><li>Younger Boomers: </li></ul><ul><li>Current ages: 42 - 50 </li></ul><ul><li>23.9 million households </li></ul><ul><li>Purchasing power: $1.1 trillion </li></ul><ul><li>Avg. # earners in household: 1.7 </li></ul><ul><li>Avg. annual household income: $56,500 </li></ul><ul><li>Avg. annual spending per household: $45,149 </li></ul><ul><li>Spending as % of income: 80% </li></ul>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%
  14. 14. Marital Status <ul><li>68.8% married </li></ul><ul><li>14.2% divorced (> prior generations) </li></ul><ul><li>12.6% never married (> prior generations) </li></ul><ul><li>2.9% separated </li></ul><ul><li>1.6% widowed </li></ul>US Census Bureau, 2000
  15. 15. Education <ul><li>Boomers have a higher level of education than any prior generations </li></ul><ul><ul><li>88.8% completed high school </li></ul></ul><ul><ul><li>28.5% have Bachelor’s Degree or more </li></ul></ul>US Census Bureau, 2000
  16. 16. 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
  17. 17. Family Life <ul><li>In < a decade, Boomers will comprise 52% of all grandparents </li></ul><ul><li>By 2010, Boomer grandparents will grow from 18 million to 37 million </li></ul>JWT Mature Market Group, 2006
  18. 18. Family Life <ul><li>Caregivers are typically females, 45+, with children at home and key influencers in health care and senior housing decisions </li></ul><ul><li>2/3 of all caregivers are Boomers </li></ul><ul><li>Age cohort with the highest percentage of caregivers is 45 - 49 (13%) </li></ul>
  19. 19. Retirement Lifestyles <ul><li>80% will work at least part-time </li></ul><ul><li>30% plan to start own business </li></ul><ul><li>Second or third careers </li></ul><ul><li>Delayed retirement </li></ul><ul><ul><li>Nearly 1/3 had children later and may still pay tuition </li></ul></ul><ul><ul><li>Desire to maintain present lifestyle </li></ul></ul><ul><ul><li>Savings of $2.5 million to maintain current spending </li></ul></ul><ul><ul><li>Inadequate retirement savings </li></ul></ul>
  20. 20. Travel & Tourism Consumers <ul><li>Extensive travel </li></ul><ul><li>Immersive learning (“Edutainment”) </li></ul><ul><li>Peak experiences </li></ul><ul><li>Heritage tourism </li></ul><ul><li>Cultural tourism </li></ul><ul><ul><li>Rock and Roll Hall of Fame </li></ul></ul><ul><li>Nostalgic coming-of-age tourism </li></ul><ul><ul><li>A “Beatles London” tour </li></ul></ul>
  21. 21. Financial Services Consumers <ul><li>Only 40% of workers born 1951 – 60 are on track to cover basic expenses in retirement </li></ul><ul><li>Those waiting until their 40s must save 25 – 35% of income </li></ul><ul><li>78% aren’t very satisfied with personal finances </li></ul><ul><li>70% have not met their financial expectations </li></ul><ul><li>Getting out of debt is #1 goal of empty nesters </li></ul><ul><li>Boomers will work longer </li></ul>
  22. 22. Retirement Housing Consumers <ul><li>55% plan to move when retired </li></ul><ul><li>51% will move > 3 hours away </li></ul><ul><li>Paramount issues </li></ul><ul><ul><li>62% want less maintenance </li></ul></ul><ul><ul><li>23% want smaller home </li></ul></ul>
  23. 23. Retirement Housing Consumers <ul><li>26% will consider Active Adult Community </li></ul><ul><ul><li>30% prefer urban location </li></ul></ul><ul><ul><li>29% want local natural benefits </li></ul></ul><ul><ul><li>22% prefer AAC within multi-generational development (> twice the % of those 59 – 70) </li></ul></ul>
  24. 24. Retirement Housing Consumers <ul><li>Tailored features </li></ul><ul><li>On-site health and wellness </li></ul><ul><li>Fitness and therapy </li></ul><ul><li>Food choices </li></ul><ul><li>Enabling technologies </li></ul><ul><li>Lifelong learning </li></ul><ul><li>Work and voluntarism access </li></ul>
  25. 25. Retirement Housing Consumers <ul><li>Tailored hobbies and interests </li></ul><ul><li>Emotional and spiritual wellbeing </li></ul><ul><li>Transportation </li></ul><ul><li>Ties with family and friends </li></ul><ul><li>Guest facilities and amenities </li></ul><ul><li>Homelike architecture and living </li></ul><ul><li>Sustainable design </li></ul>
  26. 26. The Cool Cohorts <ul><li>Chronically cool </li></ul><ul><ul><li>Regardless of age, Boomers continue to think they define the way life and people should be. </li></ul></ul>
  27. 27. Media: TV <ul><li>First generation to grow up with TV </li></ul><ul><ul><li>Adults 35 – 64 average 248 minutes/day </li></ul></ul><ul><ul><li>Adults 18 – 34 average 226 minutes/day </li></ul></ul><ul><li>Viewership increases with age </li></ul><ul><li>Prefer more intelligent / sophisticated programming than earlier generations </li></ul>
  28. 28. Media: TV <ul><li>Older boomers </li></ul><ul><ul><li>CSI </li></ul></ul><ul><ul><li>The West Wing </li></ul></ul><ul><ul><li>ER </li></ul></ul><ul><ul><li>News programs </li></ul></ul><ul><ul><li>Lifetime cable network </li></ul></ul><ul><ul><li>Science fiction </li></ul></ul><ul><li>Younger boomers </li></ul><ul><ul><li>ER </li></ul></ul><ul><ul><li>Friends </li></ul></ul><ul><ul><li>Survivor </li></ul></ul><ul><ul><li>Reality shows </li></ul></ul><ul><ul><li>Science fiction </li></ul></ul>
  29. 29. Media: Radio <ul><li>Listen to radio average of 21 hours / week </li></ul><ul><li>2 hours more / week than other adults </li></ul><ul><ul><li>Older boomers </li></ul></ul><ul><ul><ul><li>News / talk #1 </li></ul></ul></ul><ul><ul><ul><li>Rock #5 </li></ul></ul></ul><ul><ul><li>Younger boomers </li></ul></ul><ul><ul><ul><li>Adult contemporary #1 </li></ul></ul></ul><ul><ul><ul><li>Rock #2 </li></ul></ul></ul>
  30. 30. Media: Internet <ul><li>By 2009, over ½ of all heads of household will be > 50 </li></ul><ul><li>Worked at least ½ their careers on computers </li></ul><ul><li>Children and grandchildren are online and bring older loved ones along </li></ul><ul><li>The mature market is the fastest growing segment on the internet </li></ul>
  31. 31. Media: Internet <ul><li>Most frequent online activities for 50+ </li></ul><ul><ul><li>Driving directions 56% </li></ul></ul><ul><ul><li>Weather 55% </li></ul></ul><ul><ul><li>Travel information 54% </li></ul></ul><ul><ul><li>Community/local events 35% </li></ul></ul><ul><ul><li>Purchase airline tickets 33% </li></ul></ul>
  32. 32. Trends: Freedom <ul><li>Fastest growing segment of motorcyclists </li></ul><ul><ul><li>Increasing 10% / year </li></ul></ul><ul><ul><li>Nearly 1/3 of Harley riders are 50+ </li></ul></ul>
  33. 33. Trends: Self-Actualization <ul><li>Self-discovery </li></ul><ul><li>Self-expression </li></ul><ul><li>Balance </li></ul><ul><li>Life satisfaction </li></ul><ul><li>Community </li></ul><ul><li>Holistic solutions </li></ul><ul><li>Spirituality </li></ul>
  34. 34. Trends: Community <ul><li>Communal experiences </li></ul><ul><ul><li>Large classes </li></ul></ul><ul><ul><li>Rock concerts </li></ul></ul><ul><ul><li>Communal living </li></ul></ul><ul><li>Sense of generational community </li></ul><ul><li>Group engagement </li></ul>
  35. 35. Trends: Children’s Approval <ul><li>Children’s approval is more important to Boomers than any previous generation </li></ul><ul><li>39% hold family & friends as the most important life area (29% for older generation) </li></ul><ul><li>Children are “influencers” </li></ul><ul><ul><li>Consumer roles </li></ul></ul>
  36. 36. Targeting Your Boomer Consumers <ul><li>What are you doing in your environment ? </li></ul><ul><li>What are the challenges ? </li></ul><ul><li>What can you start doing? </li></ul>

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