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New Generational Definitions - Big Shifts Ahead

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John Burns and Chris Porter redefine the generations by decade born, grouping people by age and life stage. Each generation born in the 1950s and later is 40 to 44 million in size, although the life experiences and foreign-born composition of each vary dramatically. These new generational definitions should make demographic shifts easier to understand and quantify.

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New Generational Definitions - Big Shifts Ahead

  1. 1. These usual generational definitions are too broad for those trying to understand and target particular groups. NEW GENERATIONAL DEFINITIONS Baby Boomers. Gen X. Millennials. SHIFTS John Burns and Chris Porter redefine the generations by decade born, grouping people by age and life stage. Each generation born in the 1950s and later is 40 to 44 million in size, although the life experiences and foreign-born composition of each vary dramatically. These new generational definitions should make demographic shifts easier to understand and quantify. The 1930s Savers Achieved Dual Income Financial Success (Born 1940–1949) Driven to succeed financially, they began the surge in dual- income households and lower expenses (fewer kids), empowered by approval of the birth-control pill in 1960. Continuing to achieve financially today—19% of 65–69 year-olds still work full time, nearly double the Savers’ rate at that age. Think of the 1940s Achievers as the classmates of Martha Stewart, Bill Clinton, Dolly Parton, and Austrian-born Arnold Schwarzenegger. Led a Technology Revolution (Born 1950–1959) Started new companies at rates not equaled since, boosting productivity and longevity with their inventions. Acquired possessions such as big houses at unprecedented levels, aided by credit cards, mortgages, and 30+ years of falling interest rates. Maintaining active lifestyles as they begin drawing on Social Security and spending their unprecedented net worths. Think of the 1950s Innovators as the classmates of Steve Jobs and Bill Gates, as well as Oprah Winfrey and Ellen DeGeneres. Female Education Levels Surpassed Men for the First Time (Born 1960–1969) With both sexes pushing for more equal opportunities in the world, the Equaler women were the first beneficiaries of Title IX, and the first black US president came from this generation. For the first time, more than 60% of women worked. Dads more than doubled their involvement in childcare. They will retire less affluent than prior generations. Think of the 1960s Equalers as the classmates of Tom Cruise, Michelle Obama, Sarah Jessica Parker, and Robert Downey Jr. Led 2001 Shift to Spend More Time with Family (Born 1970–1979) Raised by more dual-income and divorced parents than ever before, Balancer teens embraced TV and video games. Reacting against their oft-divorced parents’ workaholic lifestyles, they divorce less, stay home with kids more, and have children later in life. Disproportionately hurt by the housing crash, they own fewer homes and have much lower net worths. Twenty-three percent are foreign born. Think of the 1970s Balancers as the classmates of Leonardo DiCaprio, Jennifer Garner, Reese Witherspoon, and Kobe Bryant. Led Transition to Sharing Economy (Born 1980–1989) Invented the sharing economy out of necessity, taking advantage of new technologies. The most-educated cohort ever, they are racked with student debt, under-employed, and a full 20% live below the poverty line. They share locations, likes, photos, cars, etc. to connect with friends and live in urban areas where there is more to do and mass transit. Think of the 1980s Sharers as the classmates of Beyoncé Knowles, LeBron James, Mark Zuckerberg, and Taylor Swift. Wirelessly Connected 24/7 to Friends, Family and Knowledge (Born 1990–1999) With many still in school, many of their shifts have yet to emerge. They grew up with Internet access and know little privacy. More were raised by a single parent than previously, and early Connectors continue the growing trend of having children out of wedlock. Highly educated, underemployed, and wary of credit. Think of the 1990s Connectors as the classmates of Jennifer Lawrence, Selena Gomez, Malia Obama, and Canadian-born Justin Bieber. Very Globally Aware (Born 2000–2009) The Globals are growing up with multicultural friends and value diversity. They will bear the burden of prior generations’ underfunded retirement obligations. With technology a big part of their education to date, we expect big shifts from the Globals. Learned to Save Early in Life (Born 1930–1939) Shaped by forced frugality in childhood and booming economies during their working years. Drove the shift from cities to suburbs and started a surge in divorces. Ranging from 76 to 85 in 2015, they are spending on medical and remodeling, and struggling with how to live longer than anticipated in a low-interest-rate environment. Think of the 1930s Savers as the classmates of Warren Buffett, Mary Tyler Moore, Elizabeth Taylor, and John McCain. The 1940s Achievers The 1950s Innovators The 1960s Innovators The 1970s Balancers The 1980s Sharers The 1990s Connectors The 2000s Globals Dive Deeper into the New Generational Definitions Demographic shifts impact every business in the United States. These shifts can create exciting opportunities for those who act on them, and create significant challenges for those who are unprepared. Www.BigshiftsAhead.com LEARN MORE AT 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 5,000,000 1930 1932 1934 1936 1938 1940 1942 1944 1946 1948 1950 1952 1954 1956 1958 1960 1962 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 Source: John Burns Real Estate Consulting, LLC calculations of US Census Bureau 2014 National Projections POPULATION YEAR 14 MI LLION (76–85) 1930s SAVERS 27 MI LLION (66–75) 1940s ACHIEVERS 40 MIL LION (56–65) 1950s INNOVATORS 43 MI LLION (46–55) 1960s EQUALERS 41 MI LLION (36–45) 1970s BALANCERS 44 MI LLION (26–35) 1980s SHARERS 44 MI LLION (16–25) 1990s CONNECTORS 41 MI LLION (6–15) 2000s GLOBALS US Born Foreign Born 2015 POPULATION BY YEAR BORN

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