Chapter 2 : The future is getting old(er)

Whichever you analyse the data the conclusions are the same: compared to the over-50s, the 18-35 year age cohort is growing at a slower rate and is relatively poor. In the next 15 years the number of the 50-69 year olds in the UK will increase by 3,000,000. The 15-34 year olds will struggle to grow by 160,000.

Despite these statistics marketers retain their fascination with the young.

The same patterns of aging, wealth distribution and marketing indifference exists throughout Europe, Japan, Australia and the US.

In the UK, some of those who are retired and who will retire in the next 5-10 years have a level of wealth and income that is unlikely to be repeated in future generations. They are property owners, have little debt and receive income from investments, pensions and inheritances. They are the Charmed Generation and represent a "one-time" opportunity for marketers. Once this cohort has aged and lost its ability and enthusiasm to spend it will not be replaced by another of equal wealth.

Miss this opportunity it is gone for good.

Another and larger part of this age group is financially ill-prepared for retirement and will suffer a significant reduction in their standard of living.

The message for marketers is blindingly simple. Some retired people, and those near to retiring, are going to have a lot of spending power. A lot more in this age group will have very little, a trend that will become more pronounced in the future. This puts a premium on establishing marketing relationships with the post-retirement affluent.

This chapter gives a detailed explanation of how the populations of the world's richest nations are aging and what this means to marketing.

Further reading

Published by the Marketing Society

Published by the Marketing Society