Leslie Sopp ACRS Age Concern IoF Insight Show 170608

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

[email protected]

8 reports: £175 for one report; £500 for all 8 (incl p&p; excl VAT).