Boomers Will Settle Into “Pragmatic” Buying Behavior By 2016
A study of 1,100 U.S. “Baby Boomers” predicts that certain motives, including an emphasis on pragmatism and value, will likely include focus on healthy, organic food. This is particularly influential because the Baby Boomer segment could be worth more than $2 trillion in purchasing power.
According to this study, Baby Boomers predict the following behaviors when they turn 70 (excerpted from article):
- 74 percent of them still won’t be describing themselves as old
- 86 percent will be more practical and pragmatic in their purchases, and much less concerned about trendiness and indulgences
- 76 percent will be using technology to stay connected with family and friends
- 93 percent will have more time to do things like travel, dine out, and pursue hobbies
- 63 percent will be making some kind of move, but only 9% of Boomers now in their 50’s or older imagine themselves still in search of “the dream home” at age 70
The companies that will most benefit from this collective $2 trillion in purchasing power include those who are rooted in “sensible luxury.” For example, restaurants offering smaller portion meals and centered on healthy, organic foods are likely to benefit. This shift toward pragmatism is related to the fact that only 41% of Boomers say they have a financially sound retirement plan; after living expenses, they have on average 22% of income left for discretionary purchases.