Wealth, Power and Productivity

Wealth, Power and Productivity

Wealth, power and productivity:

  • In just over 15 years, older people will represent the majority of the population.
  • They already vote in greater numbers than young people (75 per cent of those aged 65 and over voted at the last general election, compared to 37 per cent of people aged 18 to 24).
  • Sixty-nine per cent of 65-74 year olds and 66 per cent of over-75 year olds own their own homes outright.
  • Older people own 80 per cent of the private wealth of the UK, with over-65 year olds controlling £460 billion in unmortgaged equity alone – enough money to fund the NHS for ten years.
  • Over the last two decades, consumption by Europe’s over-50 year olds has risen three times as fast as that of the rest of the population. For example, over-50 year olds buy 80 per cent of all high-end cars. (The New Old Age_The Lab)
  • The baby boomers are an extraordinary generation: big, bold and powerful. In the UK they number around 17 million, making up approximately 29 per cent of the total population. (The New Old Age_The Lab)
  • It is estimated that in the UK alone, people over 60 contribute up to £50 billion per year, over 3 per cent of GDP, in unpaid family care. (The New Old Age_The Lab) 
  • Globally speaking, 11 per cent of those in their 70s have some form of paid work, and one-third of those in their 60s, rising to nearly one-half in the mature economies of North America and Europe. (The New Old Age_The Lab)
  • There are now an estimated 1.3 million workers of pensionable age (including many women aged 60-64) which represents some 12 per cent of all those in that bracket. Two in three work part-time. (The New Old Age_The Lab)

 

Value:

The over 60’s demographic will be the only demographic that expands in the next 40 years. At present 10.1 per cent of the worlds population is over 60 by 2050 there will be over 9bn people in the world, 1/5 or 20.9per cent will be over 60. 
UN World Population Prospects: The 2008 Revision

  • 13% of UK adults aged over 50 currently save money to give to grandchildren (Saga)
  • A fifth of UK grandparents are saving £400 or more a year, which would provide their grandchildren with a nest egg of £10,000 ((Saga)
  • Compared to the over-50s, the 18-35 year age cohort is growing at a slower rate and is relatively poor. In the next 15 years the number of the 50-69 year olds in the UK will increase by 3,000,000. The 15-34 year olds will struggle to grow by 160,000. (Dick Stroud - The 50plus Market)
  • In the UK, some of those who are retired and who will retire in the next 5-10 years have a level of wealth and income that is unlikely to be repeated in future generations. They are property owners, have little debt and receive income from investments, pensions and inheritances. They are the Charmed Generation and represent a "one-time" opportunity for marketers. Once this cohort has aged and lost its ability and enthusiasm to spend it will not be replaced by another of equal wealth. (Dick Stroud - The 50plus Market)
  • While a large proportion of pensioner households have low incomes, ironically, the retired account for the majority of wealthy Britons. Women own well over half of the net capital wealth of the over-65s, despite considerably lower earnings during their working lives — this is the wealthy widow effect. (Mature Market report)
  • With two thirds of homeowners over 60 getting by on under £10,000 a year, Norwich Union data reveals that they now have over £841 billion* or an average of £82,446 each, tied up in bricks and mortar. (Aviva)
  • “With 24.1 million people in the UK aged 45 or over, the grey market accounts for 40% of the UK’s total population. Although the fact that grey consumers comprise such a significant proportion of the population at present is very attractive to financial services providers, it is the fact that the number of grey consumers in the UK is expected to grow by 27% from 2009 to 2028 that is so appealing. In 2028, there will be approximately 30.7 million grey consumers in the UK (47.1% of the entire UK population), providing a massive target audience for providers. Increasing life expectancy, combined with low birth rates, is changing the demographic makeup of UK society. (http://oxygen.mintel.com/sinatra/reports/display/id=125526)