The Size of the Boomer and Senior Markets

In years past, older adults were often ignored by marketers and advertisers but those days are history. The Boomer and Senior Markets are a force that can not be ignored.

 

Size of the Boomer and Senior Markets:

• 77 million people were born between 1946 and 1964, which is defined as the baby boomer era (U.S. Census).
• The first baby boomer turned 60 on January 1, 2006.
• An American turns 50 every 7 seconds—that's more than 12,500 people every day (U.S. Census).
• As of 2009, 48 is the largest age group in the United States (U.S. Census).
• By 2015, those aged 50 and older will represent 45% of the U.S. population (AARP).
• By 2030, the 65-plus population will double to about 71.5 million, and by 2050 will grow to 86.7 million people (U.S. Census).

Wealth of Baby Boomers and Seniors:

• 78 million Americans who were 50 or older as of 2001 controlled 67% of the country's wealth, or $28 trillion (U.S. Census and Federal Reserve).
• Households headed by someone in the 55-64 age group had a median net worth of $112,048 in 2000—15 times the $7,240 reported for the under 35 age group (U.S. Census and Federal Reserve).
• The 50+ have $2.4 trillion in annual income, which accounts for 42% of all after-tax income (U.S. Consumer Expenditure Survey).
• Adults 50 and older own 65% of the aggregate net worth of all U.S. households (U.S. Consumer Expenditure Survey).
• Spending Habits of Adults 50+:
• Adults 50+ account for an estimated $2 trillion in total expenditures for 2005.
• This group has $2.3 trillion in disposable income.
• Between now and 2010, the total spending for 50+ households will increase by over $900 billion.
• By 2010, adults 45-years-old and older will out-spend younger adults by $1 trillion annually.
• In 2004, people aged 50 and older spent an average of 47.6 percent of their family's budget on "nonessentials" (Bureau of Labor).
• 50% of baby boomers plan to buy a new home after retirement (Del Webb Survey).
• As of January 2007, baby boomers are 27% more likely than any other generations to embark on a major home improvement or repair in the next 6 months (Consumer Intentions and Actions Study).
• 96 percent of baby boomers participate in word-of-mouth or viral marketing by passing product or service information on to friends (ThirdAge and JWT Boom).

Online Habits of Adults 50+:

• One-third of the 195.3 million Internet users in the U.S., adults aged 50+ represent the Web's largest constituency (Jupiter Research).
• Two-thirds of Americans age 50-64 use the Internet (SeniorNet).
• Email is the most popular online activity among 50+ users, followed by web browsing, research, and shopping (ThirdAge and JWT Boom).
• 72% of baby boomers have broadband Internet in their homes (ThirdAge and JWT Boom).
• Adults 50+ spend an average of $7 billion online annually (SeniorNet).
• The Internet is the most important source of information for baby boomers when they make a major marketing purchase, such as automobiles or appliances (Zoomerang).
• 42% of all travel industry purchases happen online, and adults 50+ account for 80% of all luxury travel spending (Pew Internet and American Life Project).
• 82% of adults aged 50+ who use the Internet research health and wellness information online (Pew Internet and American Life Project).
• By the end of 2007, the number of mature social networkers is expected to top 20 million (Deloitte).