According to a survey of 1,100 Baby Boomers, 86 percent plan to be more practical and pragmatic in their purchases when they reach the age of 70, and much less concerned about trendiness and indulgences.
The study providers, FH Boom and the National Marketing Institute, believe the turn to the pragmatic is highly correlated to the fact that only 41 percent of Boomers state they have a secure, financially sound plan for retirement. After paying their basic living expenses, Boomers anticipated that they will have on average 22 percent of their income left to spend on discretionary purchases.
But the buying pragmatism may also reflect Boomers readapting more hippie-like values held in their younger days.
"The key is to think of boomers at 70 not so much as revolutionaries, but as 'retrolutionaries,'" says Dr. Carol Orsborn, co-chair of FH Boom. "By this definition, retrolutionaries are the vast majority of Boomer-aged consumers who are aiming to get their monetary expenditures in better alignment with values formed at earlier stages in their lives. Think the 2016 version of Birkenstocks and VW in the 60s and 70s: living affordably, but with style."
Steve French, managing partner of Natural Marketing Institute, believes companies able to deliver "pragmatic value and style" to Boomers will benefit. As examples, he cited restaurants offering smaller-portion Boomer specials centering on healthy, organic food, as well as automobile companies that pack their economy cars with ergonomic features while also taking advantage of the robust market for used luxury vehicles that will be developing.
"This evolving market, in essence, will be rooted in sensible luxury," says Mr. French.
Other findings from the survey of Boomer predictions when they turn 70:
- 74 percent still won't be describing themselves as old;
- 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;
- 75 percent anticipate that "their best years are ahead of them."
Discussion Question: Do you also expect Boomer spending tendencies to become more "more practical and pragmatic" as they reach the age of 70 and older? Why or why not? What credence do you give to the theory that Boomer spending habits might be reshaped by a return to hippie attitudes?