Boom(ers) Times Ahead

So why boomers and why boomers now At 78 million strong they are one of the largest and most valuable generations in the history of marketing and unlike the Millennials who are still 515 years away from their peak earning years they control upwards of 70 of our nation39s disposable income ie they have the money and they spend it With improvements to longevity they39re living better longer lives than any generation before them Life is good as they39re healthy wealthy and active and living like they39re agelessThis high potential cohort is even more attractive right now as they are well positioned to weather the pandemic successfully For reasons related to their finances and life stage the boomers are going to be the true power consumers as the economy begins to dig out Here39s whyRetired vs FiredToday39s workforce is dominated by Generations X and Y and with unemployment rates reaching highs not seen since 1933 many are looking at prolonged periods of time without income followed by months of catching up By contrast nearly half of all baby boomers are retired think 34 million and living on fixed income A fixed income lifestyle may not have seemed all that glamourous when the economy was all about upside but for now it means quotbusiness as usualquot for those who are done with work Look for a significant number of boomers to continue to behave as they were before the pandemic actively spending on necessities and indulgences alikeSavings vs DebtBecause of their age and life stage the boomers are more likely to have significant savings accumulated from a lifetime of work sale of a home or an inheritance Prior to the pandemic boomer investors rode a ten year bull market to alltime highs that are still largely intact Despite what is happening to the economy the forwardlooking financial markets are rallying The techdriven NASDAQ index has already recovered all of its pandemicdriven losses and is back to December 2019 levels So too for the NYSE and SampampP 500 currently up 31 versus the March 23rd low If the markets are optimistic about the future then so too are boomersDreams vs DoubtExpect the boomers to be among the first consumers to reengage in nonessential spending like travel and leisure The recently imposed travel timeout meant lost time for boomers who are more intent than ever to chase their lives39 dreams while they39re still able While they39re not sitting around bemoaning canceled 2020 travel plans the unanticipated restriction on their activities has served as a poignant reminder that life is precious and that dreams should be pursued with vigor For all those doomsayers predicting the death of travel sectors like cruises don39t underestimate the power of 78 million baby boomers and their pentup demand for experiential itineraries As the pandemic begins to loosen its grip we can expect a jackinthe box economic effect as consumers led by the boomers go on spending sprees to catch up on lost timeAt times like these I39m inspired by a story from my friend Ted who was an exceptional sailor in his day While participating in a race on Long Island Sound he was part of a fleet that suddenly found itself in the doldrums with insufficient wind to make any headway While the rest of the boats waited for a puff of wind Ted realized that the fleet was also in an ebb tide that was moving them imperceptibly further away from the finish line He instructed his crew to raise a jib as a ruse while he slipped an anchor into the water out of view of the rest of the race fleet With the anchor holding his position the rest of the fleet continued to slip further behind in the ebb tide By staying stationary he had created the illusion that he was making forward progress and when the race was called on account of no wind Ted was declared the winnerBy way of this analogy fixed income boomers are winning the race at a time when so many others are losing income If you39re business is being disrupted by the economic adversity that is affecting your customers think about a quick course correct to embrace boomers There39s never been a better time to target a generation with so much wind in their sailsPhoto courtesy of BoomAgersClick the social buttons to share this story with colleagues and friendsThe opinions expressed here are the author39s views and do not necessarily represent the views of MediaVillagecomMyersBizNetamp160

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Boom(ers) Times Ahead

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Jack Myers Leadership Conversations and Industry Renewal Fund

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