Boomers and Finance - US - July 2019

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
Overview
Themes
Boomers are less diverse than subsequent generations
Figure 1: Boomer breakdown by key demographics, April 2019
Financial security is the Boomer ideal
Figure 2: Baby boomer incentives for making money, April 2019
The wealthiest generation is largely satisfied, with some serious weak points
Figure 3: Boomer retirement behaviors, by Investable assets, April 2019
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Boomers are a more homogenous generation
Many Boomers plan to keep working indefinitely
Questions about the future of Social Security and Medicare
BOOMER DEMOGRAPHICS
No longer the biggest show in town
Figure 4: Share of US population, by generation, 2019
Boomers in a nutshell: suburban, retired, above-average income
Figure 5: Boomer breakdown by key demographics, April 2019
Baby Boomers are less diverse
Figure 6: Generation composition, race and Hispanic origin, 2018
MARKET FACTORS 
Boomers plan to extend their working years
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
Figure 9: Long-Range Health Insurance Income and Cost as a Percentage of Taxable Payroll, 1970-2090
KEY TRENDS – WHAT YOU NEED TO KNOW 
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
Without a Care
Retired for Hire
No Resting Place
GROWING PAINS
Elder fraud is a pressing concern
Student loan debt: not just a young person’s dilemma
Figure 10: Boomers’ student loan debt, by age, March 2019
Boomers are reticent to trust most financial companies
Figure 11: Most trusted financial services sectors, boomers vs general population, October 2018
WHAT’S WORKING AND WHAT’S NEXT?
Boomers are plugged in
Figure 12: Boomer digital behaviors, by gender, March 2019
Figure 13: TD informational email, April 2019
Figure 14: Aetna Medicare facebook post, August 3, 2019
Can digital assistants offer truly meaningful guidance?
Figure 15: Aetna Medicare facebook post, August 3, 2019
AARP remains the gold standard in Boomer brands
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 
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
Boomers are looking for security
Figure 18: Baby boomer incentives for making money, April 2019
Figure 19: Penn Mutual Life Insurance Company, statement mailing, September 2018
Saving for retirement and emergencies top the list
Figure 20: Financial priorities of Boomers, April 2019
FINANCIAL HABITS
Boomers aren’t budgeting either
Figure 21: Boomer budget habits, by household income, April 2019
Older consumers save much more
Figure 22: Tendency to save/spend, by generation, April 2019
Figure 23: American Express, cross-sell email, February 2019
FINANCIAL ATTITUDES
Boomers also value experiences over things
Figure 24: Attitudes toward money, by household income, April 2019
Boomer women are less financially confident
Figure 25: Gender disparities in financial attitudes, April 2019
Have their cake and eat it too: Boomers want technology without the trade-off
Figure 26: Boomers’ views on technology, April 2019
Investing is a necessary evil
Figure 27: Boomer attitudes toward investing and large corporations, April 2019
Figure 28: Merrill Lynch, Investment newsletter, September 2018
FINANCIAL SATISFACTION
Boomers are largely satisfied with their financial situation
Figure 29: Financial satisfaction, aspects with highest satisfaction, April 2019
Highest levels of dissatisfaction concern debt, saving
Figure 30: Satisfaction with key financial metrics, April 2019
Urban and rural boomers are less financially satisfied
Figure 31: Satisfaction with key financial metrics, by area, April 2019
DEBT AND REAL ESTATE
Loaning money to children and stress from debt are inversely correlated
Figure 32: Attitudes toward debt, by Household income, April 2019
Among Boomers with few investable assets, credit card debt is common
Figure 33: Prevalence of Boomer credit card debt, by amount of investable assets, April 2019
Boomers are happy with their homes
Figure 34: Satisfaction with current home purchase, April 2019
RETIREMENT
More money, more planning
Figure 35: Boomer retirement behaviors, by Investable assets, April 2019
Investment firms need to reach out to Boomer women
Figure 36: Boomer attitudes toward retirement, by gender, April 2019
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Direct marketing creative
Abbreviations and terms
Abbreviations