Those Oh-So-Retiring Boomers

by chris becicka

"This is what 50 looks like," purportedly said Gloria Steinem when upon her birthday, an admirer told her she didn't look 50. The subtext of that compliment (?) was, of course, 50 is old. And as late as maybe ten years ago, that's how marketers saw anyone over 50 - just plain-old old and all were treated as "one gray mass."

But Baby Boomers are pretty sure they're not old. They're not as old as their parents were at the same age, they're not as old as you think they are, and they're not even going to be old until they're 79, according to a recent poll. They're not at the mid-point or second half of their life; they're still in the first chapter of a brand new book. That book is called, "How to Retire Without Growing Old."

No matter their opinion of themselves, it's clear that the market continues to recognize them as a potent power. When they listened to music, the Beatles became a life force. When they bought their first homes, suburbia sprawled. When both spouses worked, fast food restaurants bulged. When they starting having children, diaper sales soared and disposables were born. (The diaper industry, already earning $460 million annually, stands to profit again of course, under a slightly different name.)

Marketers, who may have long recognized the value of the overall age group, are just beginning to figure out how to appeal to it. And, for starters, it's not to call them seniors and definitely not elders. In fact, the best term might be the one a 1995 article in American Demo-graphics used: "midyouth" rather than middle age. Of course, Boomers would like that title but it hasn't caught on.

No one seems entirely sure of the numbers, but beginning in 2000, one Baby Boomer turns 50 every 9 seconds, or every 20 or every 7. By 2005, Boomers will represent the majority of those aged 50-74. People aged 65 and older are 12 percent of the population today; they'll be 20 percent in 30 years. By then, Baby Boomers will have had enormous impact on the products and services they buy. Those marketing anti-aging products are not just drooling, they're acting.

Reflecting that action, even the plastic surgeons have cosmetic lines they market to their customers, either as an adjunct or an alternative to plastic surgery, says Melly Schmidt of Renaissance Plastic Surgical Arts in Overland Park. And the cosmetic surgery business, whether it's lifting, implanting, nipping, tucking or sucking, is absolutely booming. Even if you don't believe the rumor? urban myth? fact? that Johnson County has more plastic surgeons per capita than Beverly Hills or Phoenix, the omnipresent ads indicate a highly competitive market. Costs have gone down, Boomers have the dollars to spend, and they are increasingly spending them to look younger and feel better. But it's not necessarily vanity, says Dr. Jeff Colyer. "Boomers need to compete in the workplace, and they set goals in what they want to achieve. When they want a better self image, they seek results."

Boomers may plan to stay looking young(er), but it's also clear they will, no matter what they think, get older. And with age, comes retirement. Those options have changed as well. Retirement communities are gearing up, not only for a much larger group, but for a group whose retirement years will not be the same as their parents.

One such choice is Wexford Place, an independent living community located in Kansas City North, which offers affordable living ranging from efficiencies to two bedroom apartments for those aged 55 and older. Best described as a resort neighborhood with all the amenities and luxuries one could desire, it provides healthy meals in a cheerful dining room, full housekeeping, laundry and transportation services, and everything from an indoor pool to billiards to nearby golf. "Baby Boomers now often have the responsibility of helping their parents make different living choices," says Diane Hanold, Executive Director. "There is enormous variety in our services and the independence and flexibility of our community is very important to these clients."

"Life care communities," a variation on the scene for quite some time, care for residents throughout the rest of their lives. What these "continuing care retirement communities" offer is also evolving. Jim Dawson, Vice President of Sales and Marketing for John Knox Village, one of the four largest such communities in the entire country, points out that, "If you're over 50, what is called the senior market will change dramatically. We know that the Baby Boom generation will not consume their senior years as their parents have - they haven't done anything like their parents have."

Those changes are already occurring, he says. He points to their new state-of-the-art fitness center where weight training and aerobics are popular - ten years ago, unimaginable. A new computer center with large screen monitors and interactive training is a new favorite. John Knox Village, situated on over 300 acres, is replacing old style small "cottages" and multi-family dwellings with more spacious and individualized homes to meet consumer demands. "Already," he says, "today's senior is not like the one of 20-30 years ago . . . the Baby Boomers will change that picture still more."

Many will still be actively employed when they move into one of these communities. A survey done by the Del Webb Corporation found that two-thirds of the oldest Baby Boomers would like to work after they've retired, three-quarters of those in a part-time capacity. This is twice as high as the share of retired men from the preceding generation who returned to work.

Actually, many Boomers may have to work after they retire. The 50-year-olds in the survey say they want to retire at the same median age of those today, about 63. But not all of them will be able to afford to. It's been calculated that the Boomers, a generation of spenders, need to save 16 percent of their earnings annually to have a decent retirement. Perhaps they're hoping to inherit money, and they will - about $10.4 trillion from their parents. But that money will be transferred over time and has to be divided (unevenly - 1/3 of that inheritance will go to 1% of the 70 million Boomers.) But how should that inheritance be handled?

Diana Davis, Vice President, Head of the Retail Division for the First National Bank of Kansas, points out that trust departments are designed for people beginning with estates of around $250,000 in liquid assets, not as much as one might think. As Baby Boomers inherit and accumulate wealth, trust and investment services will not just be for the older generation. Her bank is already seeing this.

Boomers should not, and mostly are not, depend upon inheritance, however. They are beginning to plan. Davis emphasizes the importance of a plan, no matter one's income or lifestyle. She points out that Boomers can be at very different life style stages. But regardless of income or life stage, she believes, "You have to do some planning. The earlier the better. And if you make less income, you need to do even more planning."

Saving and investing are still not number one for most of these elder Boomers. They are still consuming, albeit with a difference. While not all Boomers are affluent, those who qualify are still buying luxury items - but they want them to be unusual. Marion Battaglia, Vice President of Baron BMW, credits this attribute for the soaring sales of niche automobiles. While his target market skews somewhat lower than total "Boomeristics" to include 25 year olds, he notes the sales of both his Z3 roadster and the X5 sport activity vehicle target different Boomer desires. The Z3 appeals to those who want something different, attractive, reasonably priced, and fun. The X5 appeals to those who want a four-wheel drive vehicle that drives like a car and is versatile. "Boomers are more careful about what they buy," he stated. "The successful manufacturers will be the ones providing this age group a product that is unique and flexible."

Echoing that distinction is vital, Scott Krigel, President, points out their newest store, Krigel's Gallery, was designed to appeal to the affluent, especially the Baby Boomer affluent. Estimating that 25 percent of their market is Baby Boomers who provide 50 percent of the dollars at that store, he says that they took the leap from mall stores to a boutique that has the Rolex watches, 18 karat (and above) gold and platinum jewelry, and designer giftware because, "We want to provide both upscale and unique - the unusual, the distinctive, the beautiful. That's what Boomers are looking for."

There's oh so much more to say about Boomers, the attempts to market to them, their effects on the economy. Travel, entertainment, pre-wired homes for stereo systems (we're not giving up rock and roll!), hearing aids, built-in movie theaters, wine, health care, euthanasia, and good beer are just a few of the remaining topics. And we haven't even begun to talk about what happens when they're all grandparents - toys, phone calls, kids' clothes, grandparent travel outings, greeting cards, and self-help books on communicating with your teenage grandchild. It's endless; it's inevitable.

On that 50th birthday, Gloria Steinem said it felt a lot like 40. Fifty is just a midpoint, not an endpoint. Retirement is just a transition, not a withdrawal. Boomers hate the word retirement, anyway. They want words like opportunity, growth or any image that suggests they can keep developing their lives and skills as they age. And they probably will do just that as they write the new book on retirement. Catch it soon in its large-type version.