Engaging and marketing to an increasing number of UK pensioner millionaires
Pension reforms, along with the accumulation of property wealth, have created a generation of older people more affluent than ever before. As longevity continues to increase, it will bring with it new demographic changes and significant new business opportunities for financial service businesses.
The number of people aged 60 or over is expected to exceed 20 million by 2030, according to the latest Office for National Statistics (ONO). These people are living longer, healthier lives and are increasingly unlikely to stop earning at 65. A Wealth and Assets Survey from the ONO statistics reveals that more than one in ten UK pensioners has a total wealth of £1 million or more. More than a million of the UK’s pensioners are now millionaires.
Needs, wants and buying power of the over-55s
There are now more than 23 million people aged over 50 in the UK, according to the Mature Marketing Association – and this number is increasing every year as the population ages. The so-called ‘baby boomer’ generation, currently aged 55–75, has profited from social mobility, rising property values and decent pensions, ending up relatively well off.
Ironically, however, age and generation are becoming increasingly ineffective as a means of engagement and marketing. As these new business opportunities and markets continue to emerge, every financial service business should have a strategy in readiness for this demographic’s needs, wants and buying power.
Older workers and entrepreneurs shouldn’t be ignored
The financial services industry has always catered to older people, primarily those planning for retirement. As clients prepare for longer lives, retirement remains a powerful growth driver. But a financial market for older workers and entrepreneurs is rapidly expanding too. Driven by financial assets controlled by older investors, this segment of the longevity market simply cannot be ignored.
As longevity strategies are developed and implemented, financial service businesses also need to consider not only what makes up the services they offer, but also how they are marketed. The reality is that older consumers today do not want to be patronised, but they do want their needs acknowledged, and for advisory businesses to emphasise both positive and real aspects of ageing.
A one-size approach certainly does not fit all
It’s important to really understand what older consumers’ needs are and how to address them. The ageing population is diverse, and the answers are not simple – a one-size approach to marketing to them certainly does not fit all.
But we do know that there’s already a clear demand for products and services that can help people live longer, more comfortable and more meaningful lives, and that are promoted without stigma or stereotype.
Benefits both to your bottom line and to society
This demand is set to grow rapidly in the coming decades, and financial advisory businesses that deliver this proposition will reap a sizeable dividend. It’s a huge opportunity – one that will have benefits both to your bottom line and to society.
At Goldmine Media, we believe that the potential for forward-thinking financial service businesses must go beyond just an interesting business opportunity. As older adults are poised to shape consumer and capital markets in the years ahead, there needs to be a joined-up and coordinated approach taken to the way you market and engage with this sector.
Is your business ready to take advantage of significant new business opportunities?
As demography shifts, spiralling health costs and questions about the adequacy of public and private pensions and retirement funds rightly stir concerns. This provides a significant opportunity for financial advice businesses that are able to reach out to these individuals via a coordinated marketing strategy. For more information about how Goldmine Media can help your business, talk to a member of our Business Development Team on 0845 686 0055, or email: findoutmore@goldminemedia.co.uk.
Tobias Fenton, Marketing Analyst, Goldmine Media
