Mary Furlong & Associates' Boomer/Senior Market Report
Exploring the 10 Trends Powering the Age Boom
October 2006 - Vol. 3, No. 6
Mary Furlong & Associates has launched new Public Relations services! Read more.
In This Issue:
Dear Friends and Colleagues,It was so quiet you could hear a pin drop for much of the Online Community Summit in Sonoma, Calif., last week. Sixty-two experts in the field of social networking, online community and viral marketing gathered to hear the latest. Jim Cashel and team, the conference organizers, did a first-rate job of pulling together thought leaders who shared new business models and case studies of what works in today's Internet marketing. Imagine the quiet in the room when it was announced that Google was going to purchase YouTube for $1.65 billion.
Here are some of the highlights:
-
Michel Thouati, CEO, and Joe Cothrel, VP, of Lithium Technologies shared the story of how gaming companies are incorporating social technologies into the design of online games. The communities are growing with the viral marketing. They also shared how companies can now calculate their return on investment from adding an online community. The return comes from the improvement in the customer service area as well as increases in sales and marketing. It is very exciting to see the business case for these tools.
-
Michael Sherrod, VP of MyFamily.com, Inc., gave a brilliant presentation on the different ways companies can create a business model using social networking technologies. Michael is a veteran of the online space from his earliest days at AOL. He could speak about how free communities like RootsWeb can help support the growth of fee-based services. This is a real breakthrough in business models. In the New York Times on October 9, the new CEO of MyFamily, Tim Sullivan, shares more about the business model and the revenue. MyFamily serves the needs of many 45+ customers as they explore the niche area of genealogy. (By way of full disclosure, I'll share that ThirdAge Media was sold to MyFamily.com, Inc. and I am a shareholder).
-
For those of us in the "community space" for a long time, it was inspiring to hear the story of the rapid growth of communities in China and India. Satya Prabhakar of Sulekha and Xiaofeng Jin of Linkool.biz shared their perspectives. It was affirming to hear that in India community members network for connections that help their careers. (It was almost like hearing the LinkedIn story.) And it was also interesting to note that there are certain immutables regarding online community, and these often relate to finding people of "like-minded souls."
-
Another highlight of the conference was learning about the work that Marty Kearns, Executive Director of Green Media Toolshed, is doing in getting individuals to donate "12 minutes of time." He is really onto the future where online community can be combined with giving back -- a major interest of boomers today.
Of course, one of the reasons it was special to connect with the Online Community Summit is the joy we all feel in celebrating SeniorNet's 20th anniversary this month. For 20 years, SeniorNet has been setting the standard for how online communities can provide that special "sense of place and purpose" for individuals. It is with great appreciation for the work of the leaders, Kristin Fabos and Marcie Schwarz, and all of the volunteers and sponsors and contributors, that we are proud and pleased to be a part of this event. We have certainly come a long way from the days of trying to evangelize the idea in l986! We will be honoring Lloyd Morrisett, the Markle Foundation and many of the others sponsors and contributors. For those of you with an idea to create an online community for social good, now is the time to begin. There are great models and there is also great interest from foundations such as the Omidyar Network, The Skoll Foundation and others who participated in the Online Summit.
I had an opportunity to have lunch with Mike Irwin, CEO of Focalyst, right before his Focalyst Executive Forum event in New York. It was a sellout and they had many great speakers. Of real importance to those of you who are following the boomer market is the new research from Focalyst; you can read about some of the highlights in this newsletter.
We also had a great meeting with Springboard Press while in New York. Karen Murgolo shared some of the new books targeted toward the boomer market. I read (cover to cover!) Leap Days: Chronicles of a Midlife Move by Katherine Lanpher, formerly of Minnesota Public Radio. Katherine is on a 10-city reading tour this fall, so if you get a chance, go catch her. The line in the book that caught my attention most is when she described her move to New York: "I like to leap," she said simply. People forget that the boomers can still be adventurous, even as they get older. It takes a bit of soul searching but I suspect we are going to find many who "like to leap." The book is wonderful at describing the transitions that come from such leaping.
Along with leaping, boomers are also caregiving. Like many boomers trying to do the right thing, Hillary Clinton moved her 87-year-old mom into her home in Washington, D.C., off Embassy Row. The blessing is that we have the privilege of having parents who are living longer and we have more time to spend with them. The challenge is to provide the care that they need. Many organizations are following this trend, providing resources for those of us who need some guidance. One of these resources is the National Alliance for Caregiving. Gail Hunt has led that effort for decades. A recent study about the needs of caregivers is profiled in this newsletter.
A few upcoming events to note:
- Beyond the Boomers: The Transition Years, Friday, October 20, 2006, Chicago Hilton and Towers, Chicago, IL
- Save the date! Fourth Annual What's Next Boomer Business Summit, March 5-6, 2007, Chicago, IL
If you have book recommendations or leaping stories of your own, I invite you to share!
All the best,
Mary
"Rightsizing" Business Opportunities
By Ciji Ware
Millions of midlife Americans -- 77.5 million boomers and some 14 million war babies -- are starting to reevaluate their surroundings as their kids begin to leave the nest and they themselves start to think about retirement. Whether they're going from the multi-bedroom suburban house to a condo in the city, or downsizing from two homes to one, or even "upsizing" by making room for grandchildren to visit or an elderly relative to join the family, the trend for people in their 50s and beyond is a shift to well-planned living quarters that suit their age, stage and situation.
I call this newest boomer trend "Rightsizing" and write about it in my forthcoming book, Rightsizing Your Life: Simplifying Your Surroundings While Keeping What Matters Most (Warner Books/Springboard Press, January 2007). It's a term that applies to the hundreds of thousands of boomers and their elders who are relocating often to smaller living quarters every year. However, the concept of rightsizing has more to do with "right" than "size," and whatever the ultimate square footage, this rapidly growing group faces many difficult decisions about what home environment makes sense for them in this new phase of life. As they launch themselves into this major transition, they will need a variety of services and products to smooth the way.
The Opportunities
First, boomers will face the daunting task of paring down a lifetime of possessions while furnishing their new lives with things that have meaning and utility. This simplification of surroundings and jettisoning of "stuff" will liberate people in midlife to pursue their passions and hobbies without the albatross of a big house and surplus possessions weighing them down.
And here's the good news for marketers targeting people who are taking a critical look at their earthly goods and environment and redesigning their lifestyle for the last third of their lives: They'll need lots of help.
Enter the builders of active-adult communities, architects and designers of cluster cottages, college town and cruise ship condos, manufacturers of furnishings and tools useful to middle-aged and elderly consumers, healthcare and insurance providers, realtors certified as "senior specialists," estate planners, senior move managers, professional organizers, decluttering professionals, moving and self-storage facility owners, and retailers like The Container Store, poised to help people simplify and organize their surroundings. The list is long.
Sellers Beware!
But be warned: those marketing to boomers need to understand the mindset of their target market, and not merely how many rings they may have on their tree. Once an American passes mid-life, it is folly to assume he or she shares the same, predictable characteristics with everyone who is over fifty. Perhaps the most important thing I learned during the interviewing and research phase of Rightsizing Your Life is that to attract a boomer's attention, you'd better have a clear idea where he or she falls in terms of both behavior and lifestyle characteristics. Age alone does not tell the story.
The articulated goal in Rightsizing was to offer the first comprehensive, practical guide to this winnowing process, providing a seven-step plan to get started as well as tips on how to deal with the emotional factors (an attachment to your possessions, nostalgic mates, reluctant kids) that can stall the process and sabotage sensible decision-making.
For people marketing to this group, the crucial thing is to aim goods and services at a specific niche that will solve a particular problem. In my own research I discovered that boomers in the main are looking for two principal things: an appropriate infrastructure (suitable housing, furnishings, transportation, a welcoming neighborhood, security, amenities, convenient access to shopping and healthcare) and a sense of community (kindred spirits, interesting pastimes, proximity to religious and social institutions) that suit their situation now.
Targeting Your Boomer-Grams
If you wish to craft the right message about a product or service, fashion it to fit the behaviors and lifestyle preferences of the people you're targeting. And don't assume you know what those preferences are unless you or someone you trust has been in the field talking to real people in real living situations. Most importantly, look far beyond conventional wisdom about boomers. You might be surprised, as I was, by what you find. There's a big, broad demographic bulge out there, making some very significant lifestyle changes. Figure out how your goods or services can help them "rightsize" at a particular age and stage, and you'll be very busy, indeed.
You can learn more about the rightsizing trend by visiting www.RightsizingYourLife.com. Or email Ciji Ware, author, broadcaster, speaker and consultant at ciji@RightsizingYourLife.com.
The Pension Protection Act of 2006...Made Simple
By David J. Tananbaum, Enrolled Actuary, AtPrime.com
President George W. Bush signed into law H.R. 4, the Pension Protection Act of 2006, on Thursday, Aug. 17, 2006. Said the President, "Americans who spend a lifetime working hard should be confident that their pensions will be there when they retire."
The Pension Protection Act of 2006 is a big step forward, making permanent temporary retirement provisions, simplifying retirement rules and options. The act is an effort to reduce the estimated more than 195 billion dollars of Unfunded Pension Liabilities and to assist the Pension benefit Guarantee Corporation in its quest to stabilize its more than 23 billion dollar deficit.
Let's simplify some of the provisions of the new law and what they mean for you:
Some of the Key Provisions
-
Makes permanent key consumer tax beaks such as an enhanced Roth IRA and IRA Catch-Up contribution provisions.
What This Means for You: If you are age 50 or older, and were not able to contribute to your retirement in previous years, you can now contribute an extra sum each year until the day you retire.
If you are eligible and elected to create and contribute to a Roth IRA, non-deductible Roth IRA contributions are available to you. In your Roth IRA, you pay the tax when you put the money into the plan, and it is tax free upon distribution. You can contribute as long as you have earned income to be eligible (vs. a regular IRA, which prohibits contributions past age 70). These new Roth IRA rules simplify your IRA retirement plans. -
Simplification of defined contribution (profit sharing and 401(k)) plans by providing for automatic enrollment. Excess contributions can be repaid to plan participants for six (6) months after the close of the plan year without the 10% excise tax penalty. 2006 IRA contribution limits and 2007 contribution limits will be discussed in upcoming articles.
What This Means for You: Your 401(k) retirement plan administration is simplified for you. You will save more with Automatic Enrollment to provide more retirement benefits. -
Encourage combination health insurance products to reduce your cost. Your employer may now transfer certain funds from over-funded defined benefit plans to special health plans.
What This Means for You: With health care plan costs increasing by more than 10% each year, you will save, if eligible, with the new combination plans created from this legislation. -
Regulation of fiduciary advisors who give you financial advice for your 401(k) plan.
What This Means for You: The average 401(k) participant is not proficient in "investment advice." By regulating financial advisors "to the next level," your chances of making the right investment choices are improved. -
Make fiduciaries of your plans more responsible for the investment options available to you.
What This Means for You: Your plan trustees will be required to provide you will with viable investment options (mutual funds) or be liable personally. -
Sets up a new standard of minimum funding for defined benefit plans based upon the benefit that grows for you each year.
What This Means for You: If your employer maintains a defined benefit plan, such employer is required to put money into the plan, each year, based upon the benefits that are earned and available to you (subject to vesting) in that plan year, and not over your working lifetime. Automatic funding improvement! When you retire, there is a greater chance the promised funds will be available for you. -
Initialized a new standard of funding and benefit rehabilitation in poorly funded plans. All plan gains and losses will be made up over 7 years. If the "funding ratio" (simply stated, the excess of plan accrued benefits less plan assets valued at market value) falls behind 80% in the previous plan year, such funding shortfall in the current plan year is made up over the following seven (7) years (this provision is not subject to plans in their first five (5) years of existence). In addition, an 80% or less under-funded plan cannot increase benefits. If the plan's "funded ratio" falls below 60%, lump sum distributions are prohibited, and all benefit accruals are frozen. You must be notified by your plan trustees of the occurrence of these events.
What This Means for You: When the plan's "funded ratio" falls below 80%, the shortfall is made up over seven (7) years, and at 60% no lump sum distributions can be made and all benefit accruals are frozen. With these new controls, your plan has less chance of going bankrupt. Finally, there is new "teeth" in pension law.
Views on the Pension Protection Act of 2006 vary, but most people agree that it's a big step forward for consumer simplicity. It's the act protecting individual retirement accounts, and although it isn't perfect, it's that much closer to ensuring pension financial soundness.
AtPrime.com has articles on all issues affecting Americans over 50. You can read other provisions of The Pension Protection Act of 2006 and how they affect you in future articles on the AtPrime.com website.
Boomers Segmented
A new study by Focalyst, a joint venture between AARP Services, Inc. and Kantar, the research arm of WPP, revealed that the 125 million-strong 42+ market is anything but homogeneous. The study defined six distinct sub-groups that affect how boomers respond to different marketing messages.
Researchers surveyed 30,000 people 42 and older and considered health, finances, work and career, leisure activities, Internet use, and consumer and spending habits.
-
Overwhelmed and Unfortunate: Unhealthy and confused. Concerned about health and financial issues. (25% of respondents, average age: 62; 45/55 male/female; average income: $45,000)
-
Active and Successful: Fashionable spenders. Good health and financial positions; undergoing employment changes. (24% of respondents, average age: 53; 45/55 male/female; average income: $72,000)
-
Positive and Responsible: Good health and financial states. Believe that time is more important than money but are still price-conscious. (20% of respondents, average age: 62; 27/73 male/female; average income: $51,000)
-
Regular Folk: Outdoorsy do-it-yourselfers. Generally stable but concerned about job demotion. (16% of respondents, average age: 58; 72/28 male/female; average income: $72,000)
-
Fortunate and Ready for the Future: Altruistic and respectful. Looking forward to aging actively and gracefully. (14% of respondents, average age: 63; 37/63 male/female; average income: $85,000)
-
Alone and Ill: Poor health and financial situations. Fearful of loss of independence and becoming a burden. (2% of respondents, average age: 71; 62/38 male/female; average income: $47,000)
For more information visit Focalyst, or read an article about the study.
EvercareŽ Study of Caregivers in Decline
A Close-up Look at the Health Risks of Caring for a Loved One
Caregivers often find themselves in a downward spiral of health that worsens as a result of giving care, according to new research by the National Alliance for Caregiving and Evercare, a healthcare services coordination organization. A total of 528 caregivers participated in online surveys, while 12 in-depth telephone interviews and four small discussion groups helped detail out further issues faced by caregivers. Health declines by caregivers not only affect the individual, but also those who depend on them. The surveys found that:
-
15% of caregivers surveyed say their health has gotten a lot worse because of providing care
-
44% say it has gotten moderately worse.
-
The remaining 41% say their health is a little worse as a result of their caregiving.
Many of the caregivers surveyed said that they could benefit from health programs that save time, relieve them from caregiving responsibilities for any period of time, reduce their level of stress, and make them feel valued.
SeniorNet's 20th Anniversary Conference and Gala Awards Celebration
Oct. 20-21, Hilton Arlington and Towers, Arlington, VA
Help SeniorNet commemorate 20 years of bringing technology access and education to older adults worldwide at SeniorNet's 20th Anniversary Conference and Gala Awards Celebration. The event will host community leaders, technology sponsors, corporations and organizations in the area of aging, as well as members of the SeniorNet Learning Center and Online communities. The conference will explore the numerous ways that technology serves the human spirit and will provide useful insights on working with our nation's booming population of older adults. Conference participants will receive updates on the latest technologies and will learn how technology can help them to lead healthier, happier, more productive, creative and independent lives. SeniorNet will also hold a press conference in Washington, D.C., on the morning of October 20, where it will unveil new initiatives and a new direction for the future of the organization.
Keynote Speakers
Friday, October 20, Luncheon: Abigail Trafford, Washington Post columnist and author of My Time: Making the Most of the Rest of Your Life.
Saturday evening, October 21, Gala Awards Celebration: Juan Williams, political writer and thought leader. During his 21-year career at The Washington Post, Williams served as an editorial writer, op-ed columnist, and White House reporter. He is currently a senior correspondent for National Public Radio (NPR), a political analyst at FOX Television, a regular panelist on FOX News Sunday, and a critically acclaimed author.
Conference Sponsorship and Registration
Join conference sponsors including AT&T, BellSouth, IBM, the Markle Foundation, Senior Service America and the Social Security Administration in support of the educational mission of SeniorNet. It will put your organization in front of the nearly 2 million older adults that visit SeniorNet every month. For sponsorship information, please call (408) 615-0699. For conference registration, please visit online.
New News Service for All Things Senior
Senior Newswire is a weekly link service to national (50+) news and information from media outlets, newspaper and magazine publications, Web resources, government agencies and nonprofit organizations nationwide! Visit Savvy Senior to sign up.
Australia: Baby-Boomers Revolutionise Retirement
Chemotherapy in the comfort of your own home, five-star hotel-style retirement villages and granny day care at shopping centres could soon become the norm as the baby-boomers revolutionise retirement.
Fed Chief Urges Revamp of Medicare, Social Security
Federal Reserve Chairman Ben Bernanke called Wednesday for an urgent overhaul of Social Security and Medicare, warning that failure to do so soon could lead to dire economic consequences.
Study: Communities Unready for Elderly
Less than half of the nation's communities have begun preparing to deal with the needs of the elderly, whose ranks will swell dramatically with the aging of the baby boomers, according to a study.
More than Half of MySpace Visitors are Now Age 35 or Older, as the Site's Demographic Composition Continues to Shift
Visitors to MySpace.com and Friendster.com generally skew older, with people age 25 and older comprising 68 and 71 percent of their user bases, respectively.
Nielsen Entertainment Study Shows Video Gaming is Increasingly a Social Experience
More than half of the nation's 117 million active gamers play online, and 64% are women.
Are Boomers Next Cash Cow?
Monster.com's founder has launched a new web portal, geared strictly to baby boomers, and investors are taking notice. The largest constituency on the web, so far elders have been an untapped market, and it appears, one that is ripe for advertisers.
More Baby Boomers Work Toward Bachelor's
Emma Ferguson's dorm room at Mount Holyoke College in South Hadley, Mass., is dotted with framed photographs of her daughter and granddaughter -- the signs of how she has spent much of the recent past in her 50-year-old life. Now, like more than 80,000 "nontraditional" students across the country, Ferguson is going back to school full-time to earn a bachelor's degree.
Report Shows Elderly Not Faring Well
Despite an exploding population of the aging, fueled by the first of the Baby Boomer generation reaching age 60 this year, fewer than half the communities in the United States have even started planning to address the needs of the elderly.
New Zealand Seniors Value Appearance and Social Life Over Finances
A Southern Cross survey has shown that baby boomers are more concerned about their appearance and social life than about their finances. Physical health, keeping up hobbies such as gardening, and age discrimination are more important to them than money.
Boomer Retirement Savings: Better to Start Late than Never
We're not exactly a nation of savers, especially boomers. Our day of reckoning draws near, and it's about to reach up and bite us in the butt.
SecondPrime.com Launches Beta Website for Seniors and Boomers, Blending Content and Social Networking
Now more than 76 million seniors and Boomers in the U.S have a place to hang out, connect, get information and plan adventures: SecondPrime.com.
Longevity Gap: Who, Where and Why Americans Live Longer or Die Sooner
In the United States, the best-off people, like Asian women in Bergen County, N.J., have a life expectancy 33 years longer than the worst-off, Native American males in some South Dakota counties -- 91 versus 58 years. So concludes the most comprehensive study to date of who dies when and where in this country.
Japan Suffers from Boomer Crisis
Japanese are living too long, and their longevity is threatening the nation's welfare state because the elderly receive most government handouts such as pensions and medical care.
Who Will Mind Mom? Check Her Contract
Seniors turn to written agreements to compensate relatives as caregivers, reducing estate size.
Boomer Doper Numbers Higher
Do as I said, not as I do could well be the motto for some baby boomers when it comes to drug use.
More reading at: http://maryfurlong.com/index.php/articles/
This issue sponsored by Beyond the Boomers: The Transition Years
Friday, October 20, 2006, Chicago Hilton and Towers, Chicago
"Advertising to Boomers"
Chuck Nyren
- The old way -- Nostalgia: It's over.
- The new wave -- Inspirational/Aspirational
- Dump the "blatant hucksterism and ballyhoo. You can amuse, but don't assume. Give us the facts."
Special offer for friends of Mary Furlong & Associates! Just select "GL&A001" for your registration type and save up to $145 on your registration fee. Register other guests at the same time under the "GL&A Guest Fee" and all guests will pay only $300 each!
Boomer/Senior Market Report
Published by Mary Furlong & Associates 3527 Mt. Diablo Blvd. #128, Lafayette, CA 94549 Telephone: 925-283-7698 http://www.maryfurlong.com
To SUBSCRIBE, visit http://www.maryfurlong.com/subscribe.htm