From FOMRO to FOMO

There were a hundred articles in the last week about aging

Aging in the prison populations; aging and healthcare; aging in the workforce; aging in place; aging in farming; aging in politics.. It's almost as if we've just realized we're all getting older.

纽约时报 had a great piece on the origins of the 401K and the unintended consequences of America's "40 year experiment" with "DIY pensions". The article was filled with really good information about how a single financial instrument has failed the majority of Americans but equally has over-served the already wealthy. Of the 700,000 401K's that hold $7 Trillion it is the top 90-100% percentile that has quadrupled its value in 30 years. Meanwhile, 49% of Americans can't afford to put money into savings, or choose not to, and are left believing their only options are to continue working into old age or preparing for poverty.

The article referenced Larry Fink of Blackrock's annual Chairmans letter for 2024 in which he celebrates the power of the capital markets. But even he admitted that "[retirement] is a much harder proposition than it was 30 years ago. And it’ll be a much harder proposition 30 years from now."

In the letter, he shared something that really surprised me. He called it the "Retirement Paradox": Blackrock's research showed that even after 20 years of retirement (75-90 years), the majority of retirees were still sitting on 80% of their savings.

What an amazing statistic, the people who hold the 70% of wealth in America are holding onto it because they fear they don't have enough. We've been so focused on urging them to save that we've forgotten to help them live, grow, and make a difference in the world. The 'Fear Of Money Running Out' (we should call it FOMRO vs FOMO?) is very, very real even for those with good health and significant savings. And yet, we know from other data that these same wealthy Americans are the economic engine that drives a significant part of the US economy. The 50+ age group is simultaneously the earners of wealth, the spenders of wealth, and the hoarders of wealth.

Without getting into the obvious discussion of America's systemic economic inequality - which was my first thought. My second thought was what a massive missed opportunity this is, possibly once in a millennium. In essence, the combined factors of living longer, declining birth rates , and wealth acquisition over a lifetime have created a new space in our lives that didn't exist before. The last one of these has to be childhood which was identified, expanded, and protected at the beginning of the industrial revolution (and think of the brands that were born of that space...every toy brand, destination brands like Disney, every education brand, entertainment, breakfast cereal, clothes brands, books etc. etc.)

Instead of filling this space with the positive emotions of excitement, adventure, wonder, joy, growth, and experimentation, we've filled it with fear and anxiety. Brands have largely left this space empty, with the exception of the financial services companies whose margins tie directly to FORMO — and the healthcare companies who probably are the primary cause of much of this fear.

Imagine the possibilities and the revenues we would release if we succeeded in unclogging the 'fountain of age' and filled the space with celebration and innovation.

In this, I think Blackrock has done a rather admirable job in the product design and positioning of one of their new financial products. Rather than feeding the uncertainty of retirement, their LifePath Paycheck product gets a lot of things right. Anchoring the language to a 'paycheck' immediately implies value and worthwhile contribution. It feels like a continuation and evolution of a lifetime of paychecks and in this way is both familiar and reassuring.

I know as marketers it's tempting to brand and name this space, but that's probably a big waste of time, effort, and money. What we need to do is fill this space with products (financial and otherwise) that make people feel joy, wonder, meaning, and expanding personal identity rather than the current void that makes them feel socially useless and invisible. I want to do this, not because it's likely to be immensely profitable, but because it's also the right thing to do...for all of us. If you too would like to begin an adventure into this new space, then let's go together...we're here to help.