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The Intergenerational Imperative: A New Narrative

We must end the conversations pitting generation against generation. It’s ageist and supports generational stereotypes that don’t value the best that young and older people have to offer – especially to each other. It’s time for a new narrative that highlights the importance of the unprecedented shifts every generation is experiencing, one that reflects the commonalities as opposed to differences.

We’ve added more than three decades to our lives since 1900. But contrary to the way many people think about those years, they are not simply tacked onto to the end life. These extra years are an expansion of every stage of life. We see it when young people take a gap year before starting college or are waiting until later in life to leave home, marry and start their own families. Midlife is expanding, as people work longer, return to school, and create new careers. And certainly old age is longer as well, as the number of Americans living into their nineties is expected to quadruple by 2050.

Work

Daily headlines perpetuate a myth of generational angst between Boomers and Millennials in the workplace, when the reality is they have much more in common than simply coping with a stretched out life map. Younger generations believe that they alone seek purpose and meaning in their work. The Workplace Purpose indicates that more than 25% do; but that number is 39% for 55-64 year olds and rises 47% after 65.

The baby boomer generation says they’ve felt the need to compete since they started working – there were so many people entering the job market at the same time, and over a long period. Younger generations say they aren’t sure how to compete; or as one person recently told me, “When you get participation trophies for everything, you have no idea what you are good — or bad — at. It can be paralyzing.”

Debt Load

Student loan debt has topped $1.4 trillion. Research by Citizens Bank found that 60% of those under 35 will be paying off these debts far into their 40s, with the rest of the burden falling to boomer parents. Boomers are paying off loans at the risk of their own retirement savings. The Federal Reserve Bank of New York research shows that 2.8 million borrowers are over 60.

Erin Lowry, author of Broke Millennial: Stop Scraping by and Get Your Financial Life Together, says,”Millennials get a lot of the press when it comes to the student loan crisis and how it will affect our futures, but there are boomers who are of retirement age and still dealing with student loans, many of which were probably taken out for a millennial child. Concerns about paying off debt and being able to retire comfortably transcends generational divides.”

Homeownership — And Finding Roommates

Last year, home ownership rates fell to an historic low – partly because millennials can’t buy or don’t value homeownership in the same way as previous generations; boomers value their homes as a significant retirement asset, as 50% have less than $100,000 saved. Reverse mortgage products have become more attractive as boomers can’t sell to younger buyers.

The growing interest among boomers to rent rather than own shouldn’t be discounted in low rates of ownership. A 2015 study by the Joint Center for Housing Studies at Harvard found that people 45 – 64 accounted for twice the share of rental growth as those under 35. In major cities, boomers are dominating the rental market, making it even harder for younger people to find affordable housing. People of all ages are turning to new sites like Silvernest and SpareRoom, which help connect homeowners with roommates.

Multigenerational Living

In 2014, a record 60.6 million people, or 19% of the U.S. population, lived with multiple generations under one roof, according to a new Pew Research Center analysis of census data. Young adults have replaced older people as the second adult generation in the household. Among people 25 – 29, 31% are residents of multigenerational households. Nearly half of all multigenerational households are comprised of grandparents, parents and grandchildren. This is one reason why the rate of older Americans living alone has dropped since 1990.

Caregiving

The average age of a family caregiver is now 49.2 years old and trending younger. Forty-eight percent of caregivers are 18 – 49 years old. With more generations under the same roof, caregiving is becoming a family affair. Seven percent of grandchildren are taking of their grandparents.

Still, there is a looming crisis of care. In 2010, the ratio of caregivers to people needing care was 7:1; in 2030, it will be 4:1. The 80+ population will increase by 44% between 2030 and 2040; the number of caregivers available will only increase by 10%. The situation completely bottoms out in the 2040s as the boomers are in old, old age. For the next 25 years we will need to attract young people to the field of aging services in huge numbers. Right now, these types of jobs aren’t even on their radar.

The generational interdependencies are clear. The issues are magnified because of the size of the boomer and millennial generations, but the issues of today will surely be repeated as the millennials begin to age, many past the age of 100 — the gift of new longevity.

Destination Singapore: Restoring the Joy of Eating

By Ani Grigorian, with Jeff Rosenfeld

In a single century, we have extended human lifespan by 35+ years. At the same time, technology has evolved to the point where we can now communicate instantaneously across oceans, benefit from software which coordinates care and manages health.

We have even created robots which sense emotion and even lead group exercises.   Not only are we living longer.  We are living better!

It’s no wonder that technology and innovations that serve our aging communities are such a hot-topic. The Ageing Asia Innovation Forum, hosted this year in Singapore, brings-together professionals, inventors, and problem solvers from all over the world.  During this meeting, they had the opportunity to sample a new line of food products: Health Food Matters. The founder, Grace Gan, calls it a functional food product because it is intended for people who have feeding issues.

Gregorian was one of the few environmental gerontologists in attendance at these meetings. By and large, the Forum brings designers, inventors, and product-developers together.

On exhibit was a plethora of products and designs meant to make life more comfortable, and nutritious for people with feeding issues.  In other words, people who need help feeding themselves, or who need to be fed.

screen-shot-2016-10-22-at-11-06-07-pmGrace Gan, a native Singaporean, developed this line of functional food products in response to the older people in her own family. The product line is called Health Food Matters, with the subtitle, “Restoring the Joy of Eating.” It is steadily gaining popularity across Singapore, perhaps because it does make eating a more joyous and dignified experience for consumers – and their caregivers.

The original market for Health Food Matters  was older adults, and people living with a disability.  Gan at first marketed exclusively to care centers and retirement residences across Singapore.

Gan, a speech therapist by training, had spent a lot of time working with patients in Singapore’s care-centers.  She was frequently present when meals were served, and she noticed that food-preparation, serving and eating were fraught with stress and tension.

Even more important, Gan noticed that feeding was as stressful for the caregivers and wait staff, as it was for patients who were being fed.

It is familiar that the sense of taste begins to dull as people grow older, affecting the ability to taste, smell and savor food.  This is true even for people aging-in-place at home, where there is more control over what is on the menu, and how it has been prepared.   In care settings, the dulling of taste buds is compounded by loss of control over menu, and dining conditions.

To compound matters, many older adults in institutional care live with neurocognitive disorders that cause dysphagia, a nutritional disorder characterized by difficulty swallowing, malnutrition and dehydration. Malnutrition and dehydration, in turn, contributes to other conditions such as bed sores, infection and hypoglycemia.

When Grace Gan visited Singapore’s care centers, she noticed that it was common practice to thicken food with milk supplements.  The idea was that this would make institutional food more nutritious and more palatable.  But, in fact, Gan believed that the result was neither nutritious, nor palatable.  Milk supplements did not typically enhance appetite, or contribute to better health.

Gan developed Health Food Matters as a way to enhance appetite by making its functional food line taste more like familiar food, and have what professionals call, the “Mouth Feel” of eating familiar food.  In taste and texture, Health Food Matters has the taste and “Mouth Feel” of familiar food, but is much softer, and easier to eat.

Products range from porridges, side dishes, snacks and desserts to condiments and thickeners with a variety of flavors that serve different  functions. As an alternative to thickened fluids, apple ENA-charge fruit jelly for instance, supplement fiber while apricot fruit jelly supplement zinc and iron. Calcium sprinkles can be added to porridges or side dishes providing flavor, color, and extra vitamins which combat low appetite and malnutrition.

In addition to keeping patients in mind when developing functional food products, Health Food Matters has benefits for caregivers. Most important, it relieves them of many meal-related burdens: chopping and cutting food, feeding patients or assisting them when they feed themselves, and the perpetual chore of cleaning-up.

Portions tend to be small, but are densely packed with extra nutrients, proteins and calories. This achieves nutritional goals for patients, and gives caregivers an unexpected bonus. The Health Food Matters philosophy  also harmonizes with Singapore’s efficiency-driven culture:  Mealtime becomes more “Efficient.”  Less food is wasted, and less time is spent coaxing patients to eat. This resonates with local nutritionists and caregivers because Singapore is a culture which strives for efficiency.

One reason for the efficiency, is that this product-line is easily prepared. Caregivers simply submerge prepackaged food bundles in heated water. Nurses and care staff can focus on caring for residents rather than worrying about the viscosity and portion-size.

Products range from porridges, side dishes,  snacks and desserts, to condiments and thickeners with a variety of flavors that serve different functions. As an alternative to thickened fluids, apple ENA-charge fruit jelly for instance,  supplement fiber while apricot fruit jelly supplement zinc and iron.

Calcium Sprinkles, another of Gan’s innovative products, can be sprinkled over porridges or side dishes to enhance flavor, color, and nutritional value.   Caregivers tell Gan that the Calcium Sprinkles also make food look more festive and inviting.

Grace Gan believes that Health Food Matters will eventually be a welcome alternative to forced-feeding.  Thanks to this Singapore-based product, older people all over the world can one day look forward to enjoyable dining, in the company of family or friends.

Even now, local care facilities in Singapore residents report improved health outcomes  when they serve Health Care Matters, Inc. to patients and/or residents.   Caregivers also report minimal food wastage and easier clean up.  Residents enjoy Health Food Matters, Inc. that they often clean their plates.

Above all, Health Food Matters  makes mealtime into dining once again.  Health Food Matters restores dignity to breakfast, lunch, and dinner in long-term care facilities.  Eating can and should be a social experience, something which is true everywhere from Singapore to Seattle.

Singapore is considered to be a leader in applying cutting-edge, sustainable, technology to geriatrics. Technology-based interventions, such as robotics, are already making long-term care facilities more efficient.  Health Food Matters may be doing this for meals and mealtime in long-term care.

Singapore is a world leader in developing and applying technology to geriatrics. Health Food Matters has been proven to make mealtime a more efficient experience.  It may well be that this product-line can also make mealtime a more spiritual and social experience. For older people and people with disabilities. That would be the proverbial icing on the cake!

Contact:  Ani Gregorian:    animgrig@umich.edu

Jeff Rosenfeld:    Rosenfej@newschool.edu

 

 

Destination Tel Aviv: Entrepreneurship in Israel

Paula Adleman, with Jeff Rosenfeld, Ph.D.

Israel is no amateur when it comes to creating new and revolutionary products.  This powerhouse, nicknamed The Start-Up Nation, is now at the forefront of “The Business of Aging.”  VitalGo’s Total Lift Bed, developed by Israel’s Ohad Paz and Ofer Parezky, is one of the examples of this kind of revolutionary product.  VitalGo’s remarkable bed has already made life safer and easier for older people in Israel and many countries around the world.   

Upright Tilting Functionality

degreesThe Total Lift Bed (TLB) has a unique, “…upright tilting functionality” (UHS, 2015:1), which helps patients sit up, stand and start moving away from the safety of the patient’s bed.  This makes it a very therapeutic bed, thus making the TLB more than just a comfortable place to sleep. Click here to see a demonstration of Total Lift Bed.

One hospital in the US tested how the TLB worked for their patients.  They found that patients who were tilted up several times per day improved more in a shorter period of time, and more of them were able to go home than patients who were confined to bed and had traditional therapy (UHS, 2015:1). TLB’s unique functionality minimizes the risk of falling out of bed, and helps contribute to shorter hospital stays.

The Total Lift Bed is FDA registered and is used in Israel, USA, Germany, Austria, U.K, Switzerland, Italy, France, Australia and Norway. Some hospitals in the US include: The Cleveland Clinic, John Hopkins, Stanford University Hospital, Carolinas Specialty Hospital, Florida Memorial and various Veteran Affairs (VA) hospitals.

bed-recline

Seniors, whether in hospital or in their own homes, and regardless of whether they are in good health or not, have a higher risk of falling and becoming less mobile. Immobility then increases the risk of many health conditions and furthers the risk of falling and decline in quality of life.  The use of the bed   decreases this risk.

Many of the patients who have used the TLB have reported that, “This bed undoubtedly saved my life!” The hospital where the study was done found that the TLB “…improved patient-outcomes, the cost-effectiveness of providing care, and the satisfaction of patients and their families.” (UHS, bed-verticle2015:1).

Israel and The Business of Aging

Israel’s demographics make it an ideal marketplace for TLB.   In July of 2016, The Jerusalem Post estimated that 10.6 percent of Israel’s population, or 866,000 people, are now over 65.

According to a recent UN publication: “For most nations, regardless of their geographic location or developmental stage, the 80 or over age group is growing faster than any other segment of the population.”   Global aging has thus created an international marketplace for the TLB in the world’s hospitals, rehab centers, and personal residences for people who wish to “age in place” in their own homes.  VitalGo’s marketing efforts are responsive to the fact that there is already a worldwide need for the TLB, both in hospitals and at home.  

 Aging-in-Place, With Dignity

Many seniors prefer to age-in-place (at home) whenever possible. Safety concerns, aging minds and decreased strength and mobility, along with increased risk of falling (especially getting up out of bed where many falls occur) can make aging in place challenging or unsafe. The chances of falling out of a bed, a chair, or down a flight of stairs increases with age, even for the healthiest of seniors.

One of the key goals in the development of the Total Lift Bed has been to help Seniors age in place with safety and dignity.

At home, or in the hospital, the TLB does most of the lifting that caregivers (whether they be trained professionals or loved ones) would ordinarily give. The TLB does not replace the human touch, but rather, enhances the ability of the caregiver to provide the healing touches needed, without the heavy lifting that leads to caregiver burnout and risk of injury. Additionally, being able to be raised smoothly and effortlessly enhances the quality of the mobility experience, without having to worry about hurting their nurse or loved one who is helping them to get up and move.

With the push of a button, whether at home or in the hospital, TLB contributes to mobility and self-confidence.  Hence, individuals, patients and caregivers (whether professionals or loved ones) are beneficiaries of the Total Lift Bed.

References

“Israel’s Elderly Population To Double By 2035,Statistics Bureau Says”   The Jerusalem Post, July 28, 2016

Carolina’s Specialty Hospital Evaluates The Total Lift Bed In Their Mobility Program”  Universal Hospital Services, 2015:1

For more information about the Total Lift Bed, see the Vital Go site.

Contact:  Paula Adleman:   Paula@Boomersurf.com

Jeff Rosenfeld :   Rosenfej@newschool.edu

Biosketch: Paula Adelman has an eclectic background and divided her time working in sports, raising 2 wonderful sons and helping the aging population. She has a business degree, with an emphasis on entrepreneurship.  She divides her time between the US and Israel. Paula is the founder of BoomerSurf.com, an American/Israeli based tech start-up. Through BoomerSurf, she is helping Boomers and Seniors manage computer, tablet and smartphone tasks online and through It improve their connection to family, friends and community.  For more information visit: BoomerSurf.com.

The Hottest Start-Up Market? Baby Boomers

Reprinted and linked to: (CONSTANCE GUSTKE, New York Times)

Boris Mordkovich, a 30-year-old serial entrepreneur, had never considered developing products for the aging baby boomer market. One day, however, he saw that his parents had started using an electric bike that his brother Yevgeniy had modified for his wife and himself.

“Electric bikes are an equalizer,” said Mr. Mordkovich, who has also owned a software company and a small-business magazine. “They let the rider decide how much or how little they will pedal.”

This year, he said, Evelo, the electric bike company that he founded with his brother, will double its revenue to $4 million, and it is profitable. “There’s no shortage of potential customers,” he added.

The company is just one of many that are plugging into a wealthy slice of the over-50 demographic called the longevity market, whose annual economic activity currently amounts to $7.6 trillion, according to AARP.

 With an estimated 74.9 million baby boomers, according to Pew Research Center, the biggest market opportunity for start-ups is older Americans rather than hip millennials.  Keep reading . . .

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.”

Come back to Silicon Valley for the annual Boomer Venture Summit

Plan to attend the longest running Venture event focused on the baby boomer consumer and the longevity marketplace. This year’s theme is Strategic Investment in the Longevity Market. It will be hosted on Wednesday, June 22nd, 2016,  9:00am – 6:00pm, at Santa Clara University, in the Music and Dance Building, Recital Hall.
Ken Dychtwald, visionary thought leader and author, will keynote this year’s Summit. This year’s agenda features invitation-only Bootcamps the day before the event, plus a Breakfast with Angel Investors with a research briefing early in the day. Favorite sessions, Pitch for Distribution, and Investment Priorities are featured, in addition to a new session titled “Elements of Success”  featuring: Ted Fischer, Vice President, Business Development, Hasbro; David Inns, CEO, GreatCall, Inc.; Andrew Gordon, Directing Animator, Pixar Animation Studios.

New Sessions, Great Keynotes – What’s Next Boomer Business Summit

Join me in Washington DC for the 2016 What’s Next Boomer Business Summit:  Seizing the Opportunity in the Longevity Economy. As Co-Producer of this year’s event, I can tell you that the sessions and keynotes have never been better. You don’t want to miss this opportunity!

This year’s event will be held on Wednesday, March 23, 2016, from 8- 6 pm at the Omni Shoreham Hotel – Washington, D.C., Shoreham Lobby Level (East Side) – Blue Room. Keynotes include: Jo Ann Jenkins, CEO, AARP; John Zogby, Founder, Zogby Analytics; and Rohit Bhargava, Founder & CEO, Influential Marketing Group.

With more than 20 sessions to choose from, there is are many opportunities to learn, network, and make a deal with a potential partner. Check out the agenda. To learn more about sponsorship, contact Mary Furlong at: furlong@aol.com.

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

boomerlogo
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 →