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Helen Ruth Elam – aka “Baddie Winkle” – is 92 bc data indonesia package years old and has 3.7 million followers on Instagram. She is just one of many influencers proving that the 90s are the new 80s, the 80s are the new 70s, and so on.
And why is this relevant?
Marketers and advertisers have long been focused on capturing the attention of consumers between the ages of 18 and 35. With that sole focus in mind, they have neglected those over 55, a population that spends twice as much as millennials under 35 in the United States and is estimated by experts to be worth $1 trillion.
the market for retirees
Insights on this segment
People aged 50 and older also have immense purchasing power: they spent $7.6 trillion in the United States in 2018. Furthermore, by 2050, their wages are projected to reach $19.2 trillion and they will account for 88.6 million jobs.
As the world migrates online, opportunities to serve this group arise as older users become more savvy and comfortable with technology.
Technology spending by the 50+ population will increase disproportionately in the coming years. As the group's technological literacy increases, their technology spending will grow by 360%. This means it will go from $140 billion to $645 billion.
Now, technological literacy is already surprisingly high among boomers , and it will only increase as millennials and Gen Z join the 50-plus population in the 2030s and 2040s.
As things stand today, the percentage of adults aged 50-64 and 65+ in the United States who use the Internet is 88% and 73%, respectively. Boomers spend an average of 5 hours a day looking at their smartphones , almost the same amount of time as millennials (5.7 hours a day).
Bottom line: Aging, tech-savvy consumers with money and time to surf the web create fertile ground for businesses, and several are already using technology to disrupt this massive market.
mental health of retirees
What are the pains of this demographic?
Mental health
Adults over 60 face a big problem: isolation. A recent UK survey found that 1 in 5 people over 60 feel lonely.
Accessibility and independence
One preference stands out across all categories of people over 50: They want to age at home. People want to be independent for as long as possible. But mobility challenges, barriers to care, and financial strain make it difficult for older people to maintain that independence.
Finance
The over-50 population will consolidate its super-consumer status in the coming years. But at the same time, disparities among retirees will increase. Between 55% and 65% of Americans over 45 have no retirement savings, and between 16% and 20% have less than $10,000 saved.
With financial concerns at the top of their minds, seniors will need modern retirement solutions and end-of-life planning services.
Business opportunities for seniors
So what are the opportunities in this segment?
Entrepreneurs have plenty of opportunities to get in early on the global longevity market revolution. But those looking to capitalize must be careful not to fall victim to a common mistake: lumping everyone over 50 into one big, undifferentiated bucket.
The needs and preferences of a 55-year-old who is on Instagram, runs marathons and eats healthy are very different from those of an 80-year-old who needs home care.
Products and services for this demographic must be finely tailored to meet very different needs.
To complicate matters, those needs are not defined by age alone: a pair of 65-year-olds might be the same age chronologically, but many years apart physically and even cognitively.
These 5 areas can provide opportunities for entrepreneurs to offer technology-driven solutions:
Clothes
There is an opportunity with “retirement clothes.” These don’t have to be limited to granny flannel nightgowns. Instead, they should fit the time in a person’s life when they have money to spend on good materials and want to be comfortable but stylish.
Functional adaptations (e.g. Velcro instead of buttons for arthritis sufferers) may differentiate this category.
Company
There are more opportunities for creative entrepreneurs to help seniors overcome social isolation and loneliness. Several startups that provide companionship to seniors have raised millions in recent years.
Co-living
From 2006 to 2016, the number of people age 65 or older living with roommates in the United States doubled from 470,000 to 988,000.
Co-living arrangements for seniors are gaining popularity around the world as they help older adults combat loneliness while saving money on rent.
Retirement and rehabilitation
Most American workers (55%) plan to continue working in retirement. While most do so because they need additional income (53%), others choose to work because they want to stay active (47%), build intelligence (39%), have a purpose (34%) or maintain social connections (21%).
As the post-retirement workforce grows, a hiring ecosystem will form around it.
Opportunities arise there for job boards designed specifically for this demographic or for training in skills for the digital economy.
Content and media
Overall, older adults are underrepresented in the new media landscape. There is a gap in the market for more podcasts , magazines, films, newsletters and apps, created by older adults and for older adults.
As you can see, business opportunities are there to be explored. If you and your business need advice to achieve the growth you dream of, we invite you to schedule a 60-minute session so we can talk and discuss the next steps.
