American Babyboombers Help2Retire Campaign !!

The Changing Age Structure of the Population The U.S. population is currently about 310 million and may reach almost 364 million by 2030.9 The single most important demographic trend in the United States is the changing age structure of the population. The U.S. population contains several generational groups. Here, we discuss the three largest groups—the baby boomers, Generation X, and the Millennials—and their impact on today’s marketing strategies.

The Baby Boomers. The post–World War II baby boom produced 78 million baby boomers, who were born between 1946 and 1964. Over the years, the baby boomers have been one of the most powerful forces shaping the marketing environment. The youngest boomers are now in their mid-forties; the oldest are in their sixties and approaching retirement. The maturing boomers are rethinking the purpose and value of their work, responsibilities, and relationships.

After years of prosperity, free spending, and saving little, the Great Recession hit many baby boomers hard, especially the preretirement boomers. A sharp decline in stock prices and home values ate into their nest eggs and retirement prospects. As a result, many boomers are now spending more carefully and planning to work longer. “You have a huge group of preretirement baby boomers, a huge number of people who are asking, ‘Can I live off my savings and Social Security for the rest of my life?’” says one economist. “A whopping 70 percent of Americans currently age 45 to 74 plan to work during their retirement years . . . both for enjoyment and because they need the money,” notes another.

However, although some might be feeling the postrecession pinch, the baby boomers are still the wealthiest generation in U.S. history. Today’s baby boomers account for about 25 percent of the U.S. population but hold 75 percent of the nation’s financial assets and account for about 50 percent of total consumer spending. They spend about $2 trillion a year.11 As they reach their peak earning and spending years, the boomers will continue to constitute a lucrative market for financial services, new housing and home remodeling, travel and entertainment, eating out, health and fitness products, and just about everything else.

It would be a mistake to think of the older boomers as phasing out or slowing down. Today’s boomers think young no matter how old they are. One study showed that boomers, on average, see themselves 12 years younger than they actually are. And rather than viewing themselves as phasing out, they see themselves as entering new life phases. The more active boomers—sometimes called zoomers, or baby boomers with zip—have no intention of abandoning their youthful lifestyles as they age.

“It is time to throw out the notion that the only things marketable to [the older boomers) are chiropractic mattresses, arthritis drugs, and [staid] cruises,” says one marketer. “Boomers have sought the fountain of youth through all stages of life and have incorporated aspects of play and fun into everything from careers to cars.”13 Toyota recognizes these changing boomer life phases. Ads for its Toyota Highlander show empty-nest boomers and declare “For your newfound freedom.” Similarly, Curves fitness centers targets boomer women. Curves’ older regulars “want to be strong and fit,” says one expert. “They just don’t want to go into Gold’s Gym and be surrounded by spandex-clad Barbie dolls.

”14 Perhaps no one is targeting the baby boomers more fervently than the financial services industry. Collectively, the baby boomers have earned $3.7 trillion, more than twice as much as members of the prior generation. They’ll also be inheriting $7.2 trillion as their parents pass away. Thus, especially in the Targeting Baby Boomers: Merrill Lynch’s help2retire campaign aims to help boomers overcome the hurdles to retirement planning.

It’s not just about “the numbers” but also about “life goals.” 72 Part Two | Understanding the Marketplace and Consumers aftermath of the Great Recession, the boomers will need lots of money management help as they approach retirement. Merrill Lynch recently launched a marketing campaign aimed at helping boomers with retirement planning:15 Stereotypical retirement ads from financial institutions show attractive older couples on the beach enjoying their idyllic golden years. “In this industry, everybody [most always] talks about the future and when you retire,” says the head of Merrill Lynch’s Wealth Management unit. But the new Merrill Lynch retirement planning campaign talks about now—about the retirement hurdles that people face in getting ready for retirement. Themed “help2retire ______” (read “help2retire blank”), the campaign encourages 50-plus year olds to “fill in the blank” with aspects of their current working and financial lives that they’d like so they can focus on what matters most in retirement planning. Different ads suggest words such as help2retire Confusion, or Cold Feet, or Guesswork. Merrill Lynch research shows that recession-tempered boomers are cautiously optimistic about retirement but need help planning for it. Merrill wants to provide that help in the form of personalized financial advice. Merrill is approaching the topic from both a rational and an emotional standpoint. It’s not just about “the numbers” but also about “life goals.” Says the head of Merrill Lynch Wealth Management: “It’s not just about aspiring to get a second home in a warm location [anymore]. It’s about spending more time with your family and friends and relieving the anxiety around the guesswork that so many [boomers] are feeling.”