Yahoo Finance Boomers so rich they’ve coined a new generation
Did you know that in the 1930s, teenagers didn’t exist?
Well that’s not quite true, they were around, but they had not been labelled “teenagers”, or given any kind of name.
So how did they then become “teenagers”? The answer probably lies in marketing. That is, if you can label a demographic, then you can attempt to describe it, and then put it into a category to market goods and services to it.
Marketing types often create problems, and then provide solutions to those problems by way of a product they are selling. It’s much easier to then sell that product to someone, or a group of people, if they have an identity.
Over the century teenagers became the target of the fashion, entertainment, food, and technology industries – to great success!
Now, there’s a new group of people in society that are being targeted. So, who are they, and why are they being singled out?
Boomers
So here are the generations laid out for you: Boomers; Gen-X, Gen-Y and Gen-Z or Centennials.
Generations X, Z and Centennials have pretty well been canvassed. Gen-Y or millennials are often featured in news items for not being able to get a pay rise, or save money for a home deposit. They’re out-gunned and out-played by cashed-up Baby Boomers.
And that’s where this gets interesting. You see not all Baby Boomers are rich, and not all of them still work, but an unusual number still do both. That creates a wonderful opportunity for marketing executives who want their money.
Still going strong
Australia’s globally competitive health system is keeping more older Australians compos mentis until well into their 60s and even 70s.
Figures from the Bureau of Statistics show that, in 1901, only 4 per cent of Australians were aged 65 years or older. By June 2010, this proportion had risen to 13.5 per cent, and is projected to increase to between 21 per cent and 23 per cent by 2041.
That means two things:
Firstly, older Australians are able to work longer, and therefore have more disposable income. There’s even an economic case for employing older Australia. Figures from the Human Rights Commission show an economic loss of $10.8 billion a year to the Australian economy for not utilising the skills and experience of older Australians.
Secondly, if they choose not to work, and have money, they are able to travel and spend-up – enjoying their retirement.
Indeed some research, this time from the Australian Public Service Commission, even goes so far as to say that boomers make better employees. Why?
“… older workers are more likely to be aware of safety in the workplace and, therefore, less likely to have an accident.”
“… older workers tend to develop their own coping strategies (such as pacing, anticipation, planning and organisation) as they age, and these strategies may help them to reduce.”
I have no idea whether that stacks up or not, but the reality is many Boomers are working longer, even though that may only be in a part-time capacity, and the Boomers that have money – well they have lots of it!
New generation
That’s why two names are being tossed up to box these cash-up Australians:
The first is Nyppies (Not Yet Past It) and Owls (Older, Working Less, Still earning)*.
Food for thought
So, how do you market to this group?
There’s a story told over and over again in finance circles. It goes something like this: a man, who loved his daughter very much, couldn’t resist buying presents for her. Of course she welcomed all of his gifts. One day he had a thought, what if I gave her money, and told her she could spend it on anything she liked? Well he did just that! She then went out and bought lots of her favourite products.
The father then bought the shares of the companies behind those products, and needless to say, made lots of money.
I wonder if it’s now time for children of Nyppies and Owls to monitor their parents’ spending, and do the same thing. It may help to fix the generational wealth divide!
Post script
It’s important to note too that there are also a number of Australian Boomers who are not cashed-up and who struggle with higher costs of living (especially utilities bills). From my own reporting with the ABC I know older Australians are concerned their jobs are under threat from foreign workers and students who are prepared to accept much lower pay and working conditions.
* Acronyms “Nyppies” and “Owls” referenced in The Economist July 8th to 14th 2017
David Taylor
