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17th June 2008
Baby Boomers
Successful Baby Boomer fundraising…
…..what every fundraiser needs to know
17th June 2008
Who are the Baby Boomers?
And why should we care?
Leslie Sopp, Head of Research, ACRS
17th June 2008
1946-1953: Baby Boom Generation (‘Leading edge’; ‘Core’)
1954-1964: Generation Jones (‘Trailing’; ‘Shadow’)
17th June 2008
“Mainstream thinking is
firmly wedded to the idea
that social revolutions are
brought about by youth. The
third age is characterised as
inherently conservative,
resisting rather than leading
change”
Demos: ‘Boom or Bust’ 2002
17th June 2008
0
200
400
600
800
1000
0 20 40 60 80
2005
2020
By 2020 there will be 24%
more people over 50
Source: GAD 2003 projections
17th June 2008
Defining characteristics
• Post global war peace dividend
• Economic, social and consumer expansion
• Health and longevity
• Wealth and prosperity
• Education
• Expanding horizons
• Making a difference
• Telling it like it is
• Analysis and insight
17th June 2008
% in 2020% in 2020% in 2020% in 2020% in 2005% in 2005% in 2005% in 200520202020202020202005200520052005
10%10%10%10%8%8%8%8%6,3196,3196,3196,3194,9284,9284,9284,92875 +75 +75 +75 +
10%10%10%10%8%8%8%8%6,4326,4326,4326,4324,9304,9304,9304,93065656565----74747474
20%20%20%20%18%18%18%18%12,35212,35212,35212,35210,43610,43610,43610,43650505050----64646464
40%40%40%40%34%34%34%34%24,54124,54124,54124,54119,85519,85519,85519,855Over 50Over 50Over 50Over 50
17th June 2008
0
5
10
15
20
25
30
There are proportionally fewer young people around
%
Year
Source: Office for National Statistics
1981 1991 2021201119711961 2001
Under 16
65+
25%
12%
18%
20%20%
16%
18%
17%
2007
Average age: 34.1
Average age: 38.8
2031
Average age: 43.3
In 2007, the number of people of state pensionable age will exceed the under 16s
17th June 2008
17th June 2008
Older people generally have substantial wealth
Source: Greypower, 2003
32%
5%
36%
14%
1% 11%
£200,000-£299, 999
Under £50k
Over £500,000
£50,000-£99,999
£100,000-£199,999
£300,000-£499,999
Value of home among over 50s
Base: 31,308
Older people account for 80% of the
country’s personal wealth i.e. two
fifths of the nation control four fifths
of its wealth, property, pensions & assurance
Over 50s account for 40% of
Britain’s spending power – a figure
which is increasing
Under 5% of mature consumers still
have a mortgage by the time they
reach 70 years old(Source: O45s, Millennium Research Bureau)
In 2003 almost 70% of the UK high
net worth population was accounted for by those aged 56 and over(Source: FT.Com)
Source: Greypower, 2003
17th June 2008
…however
95% of
marketing spend
is devoted to the
under 50s
YET those over
50 represent
40% of total
consumer spend
55
33
169
0
20
40
60
80
100
120
140
160
180
50-64 65-74 75+
£260bn a
year
Source: FES 2000-01, ONS 2001, Executive Actuary Department Estimates
17th June 2008
“At every stage of their lives, members of
the Baby Boom generation have been at
the forefront of radical social, economic
and political changes: within the family,
within education, within the workplace
and beyond”
Demos: ‘Boom or Bust’ 2002
In fact…
17th June 2008
People are retiring earlier...
0%
20%
40%
60%
80%
100%
15-44 45-49 50-54 55-59 60-64 65-69 70+
Not retired
Retired
At age 55, 16% of the population have already retired
By 60, this increases to 55%
Source: Office for National Statistics
Source: Office for National Statistics
17th June 2008
“Suddenly, they were free…”
0%
20%
40%
60%
80%
100%
15-44 45-49 50-54 55-59 60-64 65-69 70+
Children in
household
No children in
household
Between the ages of 45-54, the
likelihood of there being children living
in a household falls from 47% to 8%
Source: Office for National Statistics
Source: Office for National Statistics
17th June 2008
Baby Boomers are beginning to have more free time
“I have very little time for relaxation”
53
1313
30
43
45
53 50 55
66
77 78
4446
0
10
20
30
40
50
60
70
80
90
100
15-24 25-34 35-44 45-54 55-64 65-74 75+
%
Age
% Agree
% Disagree
Base: 2,005 adults, March-April 2005. Source: ASC, Life in Britain 2005 Base: 2,005 adults, March-April 2005. Source: ASC, Life in Britain 2005
17th June 2008
£29,784
£23,382
£30,970
£36,019 £34,988
£21,567
£12,859
Average 16-24 25-34 35-44 45-60 61-74 75+
Regular income is still very high as they retire
Base: Ipsos MORI MFS Omnibus, Jan to Dec 2006, 47,079 GB adults
Annual household income
Base: Ipsos MORI MFS Omnibus, Jan to Dec 2006, 47,079 GB adults
17th June 2008
£226,849
£201,317
£230,046
£241,403
£236,105
£220,749
Average 16-34 35-44 45-60 61-74 75+
And they have plenty of money tied up in their homes
Base: Ipsos MORI MFS Omnibus, Jan to Dec 2006, 47,079 GB adults
Total value of home (mortgaged or owned outright)
HOUSE PRICES HAVE TRIPLED SINCE 1995
Base: Ipsos MORI MFS Omnibus, Jan to Dec 2006, 47,079 GB adults
17th June 2008
Mean amount held in savingsBy age, at constant 2005 prices"Thinking first about your savings accounts, TESSA or ISA, about you much do you currently have in total in these accounts?”
£0
£1,000
£2,000
£3,000
£4,000
£5,000
£6,000
£7,000
£8,000
£9,000
£10,000
£11,000
£12,000
£13,000
15-24 25-34 35-44 45-54 55-64 65+ All
2001 2006
Source: British Household Panel Survey/nVisionBase: 3,873 respondents aged 15+, GB
17th June 2008
Expenditure per personWeekly expenditure at current prices, by age of head of household
£0
£50
£100
£150
£200
£250
Under 30 30-49 50-64 65-74 75+ All
households
1998 2000 2002 2003 2006
Source: Family Spending, National Statistics/nVisionBase: UK
17th June 2008
Proportion who say how well they are doing financially
By age
"How well would you say yourself are managing financially these days?"
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%1
5-2
4
25
-34
35
-44
45
-54
55
-64
65
+
All
15
-24
25
-34
35
-44
45
-54
55
-64
65
+
All
1992 2001 2006
Living comfortably/ doing alright Finding it quite/very difficult
Source: British Household Panel Survey/nVisionBase: 10,000 respondents aged 15+, UK
17th June 2008
“I can afford to splash out on luxury goods sometimes”
% who agree or strongly agree, by age
0%
10%
20%
30%
40%
50%
60%
70%
80%
All
15
-24
25
-34
35
-44
45
-54
55
-64
65
+
2004 2007
Source: nVision ResearchBase: 1,200 respondents aged 15+, GB
17th June 2008
“I have enough money to live comfortably”% who agree or strongly agree, by age
61%
54%56% 56%
64%
58%
75%
0%
10%
20%
30%
40%
50%
60%
70%
80%
All
15-2
4
25-3
4
35-4
4
45-5
4
55-6
4
65+
Source: nVision ResearchBase: 1,230 respondents aged 15+, GB, 2006
17th June 2008
Why should we care?
• There are more of them than any preceding generation
• They do more than their predecessors
• They think, talk and act differently (? all of them)
• They have accumulated assets (? accessible)
• They are prepared to use them (? how; ? when?)
• The trick is how to (continue to) engage them…..
• …..for longer• And to convince marketing directors that there is life 55+ * (and that they are worth the investment…)
• ..but not to treat them as a ‘special case’ (and certainly not as ‘old’)
* How many of you use tabs that show 55-64;
65-74; 75-84; 85+ ?
17th June 2008
Resources
‘Lifestage’ – major survey of 2,500 over 45’s, commissioned by ,
and managed by . Conducted by
Contact Leslie Sopp at ACRS for further
information
8 reports: £175 for one report; £500 for all 8 (incl p&p; excl VAT).