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Four Ways Your Wrong About Boomers

I am very proud to have received this great review from the National Association of Realtors for my book, The Grandparent Economy: How Boomers Are Bridging the Generation Gap. Following is the blog:

It seems everywhere you turn these days there’s some new diatribe against the generational focus of commentaries on society. It’s boomers attacking millennials attacking boomers… Heck, we even played an April Fool’s joke based on the trend a couple of weeks ago.

As someone who’s always bristled at generational stereotypes, I’m cheering those who are finally agreeing we need to stop playing the millennials vs. boomers card in the media (as no one talks about generation x anymore, that needn’t be halted of course). But as I was working on the upcoming feature for our May/June issue about how brokers are attracting the next generation of real estate pros, I found myself unable to avoid the term “millennial.”

Is your image of grandparents woefully outdated? Photo: bandini, Morguefile.

Are your ideas of grandparents woefully outdated? Photo: bandini, Morguefile.

That’s when I realized it has nothing to do with the terms; it’s the inaccurate stereotypes everyone should be finished with. And that’s why I really liked Lori K. Bitter’s The Grandparent Economy: How Baby Boomers Are Bridging the Generation Gap (Paramount Market Publishing, Inc., 2015). Not only is she seeking to help business owners and marketers better understand the boomer generation through the lens of grandparenthood using actual data, but she also busts a fair amount myths about boomers and grandparents in the process. Among them:

  1. Age and aversion to technology: Bitter says if you do an image search on grandparents in Google you’ll likely see “cartoon caricatures of couples with gray buns, sagging bellies and boobs, and canes… In reality, only 20 percent of grandparents are 75 or older.” She also points out that grandparents not only outspend other generations in traditional shopping environments, but they also “are outspending younger consumers two to one online… and they account for one in four mobile transactions.”
  2. Multi-gen housing as a temporary reaction to recession. Bitter, who was raised by her grandparents, points out that humans have been living with several generations under one roof since the beginning of civilization, and in many cultures around the world, it’s more common than it currently is in the United States. But as we become increasingly multicultural, it’s important to examine our biases and look at the facts: 2.7 million grandparents are raising small children on their own, and that doesn’t encompass the many who are sharing the task of raising children with the kids’ biological parents. She also points out that, far from being temporary, the trend will probably grow as people are living longer, and notes that grandfamilies occur in every area of the country and represent all income levels, races, and ethnicities.
  3. Midlife crises. Rather than fearing their advancing age, boomers are becoming less concerned with numbers as they mature. Bitter says this is the beginning of wisdom, or “the centered sense of the timelessness of all things.” She suggests thinking of marketing in the same way you might universal design: If you create something that can be used by anyone, it will be appreciated by everyone.
  4. The “Me Generation.” Bitter shows how the common trope of younger generations being full of themselves goes astray: All young people project that sort of bravado to a certain extent. “The images of self-entitled, self-centered, and materialistic boomers do not sit well, and the majority of those surveyed believe advertisers and reporters frequently get it wrong. From a developmental perspective self-involvement and materialism are features of a striving lifestyle typical of younger adults, which would be accurate for any generation, not just the Baby Boom.”

Though this isn’t a book specifically about real estate, Bitter includes numerous examples of housing communities that are successfully meeting the needs of this new batch of grandparents. And she clearly thinks highly of REALTOR® outreach to consumers: “Has an ad ever brought a tear to your eye? …Fast forward to the recent ads by the National Association of REALTORS® about the ‘American Dream of home ownership’ featuring a grandfather and his grandson. Mature consumers appreciate the art of a story well told.”

Now that’s a stereotype I think we can all live with.

Meg White

Meg White is the multimedia web producer for REALTOR® Magazine and administrator of the magazine’s Weekly Book Scan blog. Contact her at mwhite[at]realtors.org.

 

The Boomer economy: Caring has its costs

A lot has been written about Baby Boomers, who are doing a lot more to boost the economy than they are given credit for — a lot more — says author Lori Bitter.

Bitter, author of “The Grandparent Economy: How Baby Boomers are Bridging the Generation Gap,” says Boomers are not only taking in their parents, but sometimes several generations of family members who have not recovered from the Great Recession.

The problem, she says, is that they are doing it all at great peril to their own retirement.

“The real story is they may have two or three generations of people living in their homes that they were working their butts off to support,” she says. “This generation just gets bashed. When you see what is really happening. It is more interesting that the headlines and misunderstood labels.

“They are literally holding up the economy by taking care of families who haven’t made it through the recession too well, taking care of their elders and grandchildren,” she says. “Even if they aren’t totally supporting them, they are contributing to all those households.”

Not only are they endangering their own retirement by supporting family members, but they are also doing it at the expense of their own health, she says.

“Fifty is typically is where you have your personal health concerns,” she says. You look at your health in a different way. Middle-age people are managing a number of chronic conditions of their own. While caring for people at the older end of the spectrum or younger end, they’re managing doctor appointments of others, and push their own health care needs to the bottom of the list. They can see the decline of person they are they are taking care and simultaneously ignore their own health. We urge this population to take care of their own health. If their health problems get worse, the whole system breaks down.”

What is Retirement in the 21st Century – Does It Include Work?

By Gregg M. Lunceford, Doctoral Student – Case Western Reserve University

In 2011 America’s Baby Boomer’s began turning age 65 a rate of approximately 10,000 people per day[i]. Historically age 65 has been the milestone at which many people retire. Dictionary.com defines retirement as “the act of leaving one’s job, career, or occupation permanently, usually because of age”. This classic definition was more appropriate when retirement systems were created in the early 20th century to provide income for aging employees with diminishing work skills. When the Social Security Act of 1935 was drafted the average life expectancy for men and women were ages 58 and 62 respectively[ii]. By 2013 the average life expectancy for men and women in the U.S. increased to ages 76 and 81 respectively[iii].

Our increased longevity and improved health now allows for a wider range of lifestyle options therefore retirement is taking on new meaning. For many, retirement has become a career transition that includes work on different terms in the same profession, or the beginning of a new career[iv]. Work with flexible structures has led to “win-win” situation for retiring workers and employers as they recognized several benefits from working beyond retirement age. First, many individuals benefit from the socialization and feelings of accomplishment that come from work. Forty percent of individuals who completely retire from the workplace suffer from clinical depression and 6 out of 10 report a decline in health[v]. For many, work provides an outlet to continue to thrive and improve their well-being. Second, working in retirement allows many employers to maintain valuable knowledge individuals have developed over 30-40 year careers. Such individuals are often valuable mentors and can assist with succession planning and the training of younger employees in the workforce. Finally, Baby Boomers represent the largest cohort in the workplace. The complete exit of all them from the workforce at age 65 has the potential to create a human resource gap and limit overall productivity. The retention of Baby Boomers may help many organizations improve their productivity and become more competitive.

Given the overall benefits, it is important that society better understand what factors may predict an individual’s intent to work in retirement. In 2015, a study was conducted on retirement work intention[vi]. In the study 227 working individuals, of which 93% were age 50 or older, were surveyed to see what factors contributed to their decision to work in retirement. Our research showed that a person’s confidence in their ability, willingness to be adaptable and belief that they will have meaningful opportunities for work in retirement were all predictors of their intent to work in retirement.

Retirement has evolved and no longer means the complete exit from the workforce. Work with flexible options is becoming a rewarding lifestyle option for many retirees. Careful reflection on what activities will provide happiness and fulfilment should be considered in the retirement planning process and may lead to greater success in retirement.

[i] Synder, M. 2010, December 30. In 2011 The baby boomers start to turn 65: 16 statistics about the coming retirement crisis that will drop your jaw. End of The American Dream [online].

[ii] http://www.demog.berkeley.edu/~andrew/1918/figure2.html

[iii] http://www.cdc.gov/nchs/data/hus/hus14.pdf#016

[iv] Kim, J. E., & Moen, P. 2001, June 3. Is retirement good or bad for subjective well being. Current Directions in Psychologicial Science, 10: 83–86.

[v] Sahlgren, G. H. 2013. Work longer, live healthier: The relationship between economic activity, health and government policy. Institute of Economic Affairs: Discussion Paper #46

[vi] Lunceford, G. M. (2016, January). Retirement Values: What Factors Influence the Decision to Work in Retirement. Unpublished Doctoral Study at Case Western Reserve University . Cleveland, OH.

Unexpectedkindness is themost powerful,least costly, andmost underratedagent of humanchange

Gregg Lunceford, CFP® is a 24 year veteran in the financial services industry. Mr. Lunceford specializes in wealth management and works with clients on financial, estate and retirement planning issues. He currently, is a doctoral student at Case Western Reserve University in Cleveland, OH, and is studying how individuals make career transitions to retirement. Mr. Lunceford holds a MBA from Washington University in St. Louis, and a BBA from Loyola University of Chicago.

Email: gml56@case.edu

 

 

 

 

 

Boomers are the key generation for Electric Vehicles

Barry Robertson blogs at 15th Nation and is the co-founder of J.D. Power & Associates. Let’s just say he knows quite a bit about the automotive industry and what’s new. We have reprinted here, with Barry’s permission, his review of the 2016 Detroit Auto Show. And we appreciate his nod to my recent MediaPost blog!

The 2016 Detroit Auto Show: fuel misers provide a guilt-assuaging sidebar to the glamour and glitz

After a U.S. sales record of 17.5 million new light duty vehicles in 2015, the automotive press was bedazzled – understandably – by the gorgeous array of new vehicles on display at the 2016 Detroit Auto Show.

In an obligatory nod to the upcoming submersion of the Maldives and Manhattan – Trump Tower may soon install a boat dock at the 3rd floor level – manufacturers also featured some exciting new fossil fuel savers.

The 200 mile range, all-electric Chevy Bolt took center stage in the skip-the-gas-station department, but our personal favorite was the rather more, er, idiosyncratic Elio Motors P5. At $6,800 and claiming 84 mpg, we’re talking big time green savings, both personal and planetary.

And, while lacking the steampunk panache of the Morgan Aero three-wheelers which – equipped with a rowdy exterior V-twin motorcycle engine – terrorized English country lanes in the 1920s and 1930s, it has serious geek street cred.

Hybrid sales fell in 2015, but BEVs grew

All this emphasis on reducing fossil fuel use coincided with U.S. gas prices well below $2 for a gallon of regular (Gas Buddy). Adjusted for inflation, $2 is the equivalent of 33 cents in 1970 – less than the actual average of 35 cents that year (Energy.gov) when many young Boomers were already driving.
Superficially, these low fuel prices contributed to a 5% drop in “electric” vehicle segment sales versus 2014.

But a closer look shows battery-only units (BEVs) – sans gasoline aids of any type – actually grew by 8%, from 67,700 to 73,200 (Inside EVs).

In reality, it was plug-in hybrid (PHEV) and range extender model sales that fell – by a whopping 22%! Purists may groan, but these models are lumped into the EV category –and qualify for tax credits – because they eke out a few precious miles of battery travel before those pesky fossil fuels (yuk!) come to their rescue.

The 2015 decline of PHEVs mirrors a 15% drop for regular hybrid sales. With the arrival of a dozen or so new BEVs, hybrid technology’s green cachet has waned and, yes, lower gas prices have further eroded the appeal. For now. Time will tell. OPEC too.

Analyzing the patchwork of micro-niche, eco-enthusiast models that make up the tiny BEV market requires a magnifying glass and a Captain Midnight decoder ring.

Forced to build them – and to publicly pretend they really, really want to – until Tesla’s breakthrough, automakers weren’t exactly falling over one another to serve an unprofitable market sliver.

As Reuters quotes former GM vice chairman Bob Lutz as bluntly saying, because of government mandates, “Electric vehicles are going to have to be crammed in the market at way below what it costs to make them.”

The Boomer-Plus Generation: the key to BEV sales success

One thing is certain, with government policies and much C Suite face on the line, BEVs are here to stay. The key question for automakers is: do you want to sell more?  For those who answer “yes” the Boomer-Plus buyer is crucial.

In the fragmented BEV domain of techies, visionaries and devout eco-believers, industry data on buyer demos is sketchy. But here’s what we’ve gleaned:
More than half (53%) of early Tesla S buyers were over fifty, as were 43% of all BEV buyers through 2013, an era dominated by the Millennial-friendly Nissan Leaf (source: Edmunds.com, Experian).

With Leaf’s huge 2014-2015 sales decline (30,200 to 17,300), and major growth by Tesla S and BMW i3, we now figure the BEV buyer median age at fifty-something.

Far from needing to save money on fuel, BEV buyers are well-healed.

Research firm Strategic Vision tells us the median income for early Tesla S buyers was over $290,000 and TrueCar.com reports medians for early buyers of Ford Focus EV ($199,000) and Fiat 500e ($145,000) were way higher than among the proles who buy the gasoline versions ($77,000 and $73,000).

Even the admirable new 2017 Chevy Bolt, lauded by WIRED as “the first true mass-market electric car” costs $37,500. In order to benefit from the Federal tax credit of $7,500 and get the net price down to a ballyhooed $30,000, we figure buyers/lessees will come from the top 15% in terms of income/assets. Not exactly mass-market.

Eventually, with more improvements in range, BEVs will move out of the visionary stage. But older, more affluent buyers – that would be us, the over-the-hill, fifty-plus crowd – will remain the dominant generation.

Silicon Valley aside, most Millennials don’t have enough money and typical Gen Xers are struggling to raise families and put their kids through college.

So expect a continued skew to the 50-plus arena – the owners of around 80% of U.S. household net worth and buyers of half the nation’s new light duty vehicles.

Boomer-Plus: America’s most adaptable generation

It’s not just about demographics: to the chagrin of Madison Avenue’s Millennial-obsessed, 18-49 demo fetishists, the Boomer-Plus consumer, born 1940-1966, is just about the most adaptable on the planet.

First, we’ve been adapting – and early-adopting – all our lives; we’re really good at it.

We propelled import car brands past the Detroit nameplates our parents loved.
We mainstreamed light trucks, SUVs and CUVs into market dominance.
We were the first to jump aboard hybrids and BEVs – remember EV1?

And, now in the caregiving, empty-nesting and grandparenting lifestages, consultant Lori Bitter, principal of The Business of Aging, reports that Boomers are more open than ever to new possibilities. In a recent Media Post column, Lori explains they are at a point “with the most ‘consumer moments’ and an openness to trying new products and services that they may have not considered in the past.”

At 94 million strong – a population bigger and far more affluent than any European country – the Boomer-Plus Generation is destined to drive the BEV marketplace past the tipping point.

Brands serious about realizing EV profits, not just satisfying regulators, need to plug into the 50+ space before their competitors do. We can help spark the conversation.

13th ANNUAL WHAT’S NEXT BOOMER SUMMIT COMES TO THE NATION’S CAPITAL , MARCH 23, 2016

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Nation’s Leading Conference Brings Together Boomer Marketing Experts and Industry Leaders to Focus on “Seizing the Opportunity of the Longevity Economy”

Washington, D.C. plays host to the 2016 What’s Next Boomer Business Summit, the nation’s leading annual conference for the boomer and senior markets. Taking place on Wednesday, March 23rd at the Omni Shoreham Hotel, the upcoming summit shines a spotlight on “Seizing the Opportunity of the Longevity Economy” and includes a prestigious lineup of speakers, sessions, and exhibitors. Learn More →

MediaPost Engage Boomers-The Psychology of Marketing to Grandparents

The Psychology of Marketing to Grandparents

Let’s face it. Psychologist Abraham Maslow never wanted to be a marketer. In his work Toward a Psychology of Being he describes the 13 personality attributes of the self-actualizing person. Often depicted as the top of the pyramid on the Hierarchy of Needs, “Self-actualization” is the realization of one’s full potential, with a focus outside of self. Learn More →

Lori’s Interview with Barry Moltz on Business Insanity Radio

I was recently interviewed by Barry Moltz on Business Insanity Talk Radio. You can listen here:

 

“The Grandparent Economy” on Yahoo Finance

Marketing to Grandparents

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Abraham Maslow never intended to be a marketer. But when it comes to creating products, services, and messaging for older adults, his “13 personality attributes of the self-actualizing person” from Toward a Psychology of Being provide focused guidelines for creating a great creative brief. Recall that self-actualization is the realization of one’s full potential, with a focus outside of self.

Many of the grandparents we spoke with for The Grandparent Economy considered this phase of their development to have begun with the birth of that first grandchild. It is described as a turning point, as a time when the future comes into sharper focus. There is a realization of their mortality, and of family life continuing after they are gone. Relationships take on greater meaning and a sense of selflessness takes over. Learn More →

Reaching the Mature Audience

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I have always loved the concept of AARP’s “Movies for Grown-ups.” Mature adults are different. Developmentally, as we age, we connect more with great stories and complex, layered characters; in many ways we process our own lives through the stories of others. Praise for the movie, The Intern, with Robert De Niro and Anne Hathaway resonates with older adults navigating the intergenerational workplace. Learn More →