Table of Contents
Executive Summary
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- Overview
- Themes
- Boomers are less diverse than subsequent generations
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- Figure 1: Boomer breakdown by key demographics, April 2019
- Financial security is the Boomer ideal
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- Figure 2: Baby boomer incentives for making money, April 2019
- The wealthiest generation is largely satisfied, with some serious weak points
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- Figure 3: Boomer retirement behaviors, by Investable assets, April 2019
- What it means
The Market – What You Need to Know
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- Boomers are a more homogenous generation
- Many Boomers plan to keep working indefinitely
- Questions about the future of Social Security and Medicare
Boomer Demographics
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- No longer the biggest show in town
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- Figure 4: Share of US population, by generation, 2019
- Boomers in a nutshell: suburban, retired, above-average income
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- Figure 5: Boomer breakdown by key demographics, April 2019
- Baby Boomers are less diverse
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- Figure 6: Generation composition, race and Hispanic origin, 2018
Market Factors
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- Boomers plan to extend their working years
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- Figure 7: Boomer breakdown by employment status and gender, April 2019
- Figure 8: Boomer plans to continue working, March 2019
- Social Security faces hard challenges
- Medicare is in dire straits as well
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- Figure 9: Long-Range Health Insurance Income and Cost as a Percentage of Taxable Payroll, 1970-2090
Key Trends – What You Need to Know
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- Elder fraud is a big scam
- Student loan debt affects Boomers as well
- Not digital natives, but very much digital consumers
- Meaningful digital assistants?
Trends Affecting Boomers
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- Without a Care
- Retired for Hire
- No Resting Place
Growing Pains
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- Elder fraud is a pressing concern
- Student loan debt: not just a young person’s dilemma
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- Figure 10: Boomers’ student loan debt, by age, March 2019
- Boomers are reticent to trust most financial companies
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- Figure 11: Most trusted financial services sectors, boomers vs general population, October 2018
What’s Working and What’s Next?
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- Boomers are plugged in
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- Figure 12: Boomer digital behaviors, by gender, March 2019
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- Figure 13: TD informational email, April 2019
- Figure 14: Aetna Medicare facebook post, August 3, 2019
- Can digital assistants offer truly meaningful guidance?
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- Figure 15: Aetna Medicare facebook post, August 3, 2019
- AARP remains the gold standard in Boomer brands
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- Figure 16: AARP, eNewsletter, May 28, 2019
- Figure 17: AARP and The Hartford, Insurance offer email, May 2019
The Boomer Consumer – What You Need to Know
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- Security is the main concern
- A generation of savers (but not budgeters)
- Boomers value experiences over things, want tech without sacrifice
- Overall, a very financially satisfied generation
- Retirement is a key focus, but planning is often lacking
Financial Incentives and Priorities
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- Boomers are looking for security
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- Figure 18: Baby boomer incentives for making money, April 2019
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- Figure 19: Penn Mutual Life Insurance Company, statement mailing, September 2018
- Saving for retirement and emergencies top the list
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- Figure 20: Financial priorities of Boomers, April 2019
Financial Habits
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- Boomers aren’t budgeting either
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- Figure 21: Boomer budget habits, by household income, April 2019
- Older consumers save much more
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- Figure 22: Tendency to save/spend, by generation, April 2019
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- Figure 23: American Express, cross-sell email, February 2019
Financial Attitudes
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- Boomers also value experiences over things
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- Figure 24: Attitudes toward money, by household income, April 2019
- Boomer women are less financially confident
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- Figure 25: Gender disparities in financial attitudes, April 2019
- Have their cake and eat it too: Boomers want technology without the trade-off
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- Figure 26: Boomers’ views on technology, April 2019
- Investing is a necessary evil
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- Figure 27: Boomer attitudes toward investing and large corporations, April 2019
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- Figure 28: Merrill Lynch, Investment newsletter, September 2018
Financial Satisfaction
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- Boomers are largely satisfied with their financial situation
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- Figure 29: Financial satisfaction, aspects with highest satisfaction, April 2019
- Highest levels of dissatisfaction concern debt, saving
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- Figure 30: Satisfaction with key financial metrics, April 2019
- Urban and rural boomers are less financially satisfied
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- Figure 31: Satisfaction with key financial metrics, by area, April 2019
Debt and real estate
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- Loaning money to children and stress from debt are inversely correlated
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- Figure 32: Attitudes toward debt, by Household income, April 2019
- Among Boomers with few investable assets, credit card debt is common
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- Figure 33: Prevalence of Boomer credit card debt, by amount of investable assets, April 2019
- Boomers are happy with their homes
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- Figure 34: Satisfaction with current home purchase, April 2019
Retirement
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- More money, more planning
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- Figure 35: Boomer retirement behaviors, by Investable assets, April 2019
- Investment firms need to reach out to Boomer women
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- Figure 36: Boomer attitudes toward retirement, by gender, April 2019
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
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