THE HUGE ECONOMIC BENEFIT OF 55+ SENIORS, BOOMERS AND OLDER ADULTS
THE HUGE ECONOMIC BENEFIT OF 55+ SENIORS, BOOMERS AND OLDER ADULTS* by Charles Kauffman, CEO Kauffman.com
The 2010 US Census reported that 119,769 individuals In Montgomery County MD of the populations are 65 or over with 58% being females. By the year 2020, the number of seniors is projected to grow to 156,000, a 30% increase in a ten year span of time. Older adults in the County are less likely to have significant debts. Only 43% are still paying a mortgage, compared to 91% of home owners under 65. Few have young dependents living at home and have no education related or child rearing expenses. They are one or two person households. By and large they are healthy, with major medical expenses covered by Medicare. Social Security plus some retirement pensions supplement their income. Estimated per capita income is about $35,000 per year. Although these income levels are lower than the 35-55 age segment, household expenses are lower and therefore disposable income is higher. Major family and home expenses no longer burden them. Food and energy and gas expenses have risen but excluding them, other cost of living expenses have risen only slightly. The lag in the housing market has little effect on this segment and 93% are aging or residing in their own homes and are less likely to move.
The Urban Institute** observed that many in this group have delayed retirement and stay full or part time in the work force. Keeping active older adults employed, increases tax revenue and contributes to economic growth. Active engagement or employment, decreases social isolation, increases health, personal wealth, tax revenues, lowers costs enhancing businesses’ competitive advantages and strengthens local and state economies.
The NGA Center*** in Washington DC noted that even when older adults want to work, volunteer or learn new skills, too many of them do not have connections to opportunities and it offered some suggestions.
- Establish public-private partnerships to review the issue of engagement;
- Increase awareness of the benefits of work, volunteering and education;
- Create connections between older adults, work, volunteer and education opportunities;
- Strengthen engagement opportunities in state aging, workforce and education systems; and
- Encourage employees, public and private, to remain in the workforce longer, reconnect to work after retirement and volunteer.
The 2010 census estimated that total retail sales in Montgomery County were $13.4 billion and per capita retail spending was above $14,000. Aside from basic expenses like food, gasoline, utilities, car and home insurance we assume that one-half to one-third of older adult income is disposable income – where, why and how do they spend or invest $1.4 billion? How do they spend their spare time?
Can for-profit and non-profit organizations, communicate, engage, benefit and capitalize on this vast economic and labor resource? Can business and government focus on and appeal to this group? Can society employ this vast army of volunteers productively? The answer is a conditional- YES!
The blog entitled, ‘MARKET FOR SENIORS, NOT TO THEM!’ on www.kauffman.com****’ states:
“Connecting involves more than traditional public relations and media advertising. Older adults respond to sensitivity, respect and honesty, they need time and attention. Appealing to them demands a medley of PR, direct marketing, event engagement, and advertising and community relations techniques. Kauffman.com places its clients in high- profile, well publicized local and national events and activities. It engages them in coalitions, committees and events where they work with key members of major organizations. Active engagement builds personal friendships and deepens professional relations, heightens public awareness and gains media attention. A well-publicized association with a major organization will also make them more visible and more credible. Kauffman often engages clients as speakers to provide content to create interesting and informative events for seniors. It also uses new internet communications, applications and social networks.
Medium and small business owners don’t have time to manage, sell, and market. They compensate by spending more money on expensive unproductive and unfocussed media advertising and spend valuable time on vacuous networking. Kauffman.com has actually reduced their advertising and promotional spending. Marketing for seniors creates real credibility, more engagement and makes a positive social and economic impact on them individually and in their communities.”
Contact firstname.lastname@example.org 301 467 9336 with questions, comments or for more information.
*“THE HUGE ECONOMIC BENEFIT OF 55+ SENIORS, BOOMERS AND OLDER ADULTS” By Charles Kauffman, Esq., www.kauffman.com /blogs
**”CAPITALIZING ON THE ECONOMIC VALUE OF OLDER ADULTS’ WORK””. Eric J. Toder, Richard W. Johnson, Gordon B.T.Mermin and Serena Lei, URBAN INSTITUTE. www.urban.org
*** “MAXIMIZING THE POTENTIAL OF OLDER ADULTS: Benefits to State Economies and Individual Well-Being.” By Linda Hoffman, NGA CENTER FOR BEST PRACTICES, www.nga.org
**** “MARKET FOR SENIORS NOT TO SENIORS”, Charles Kauffman, Esq., www.kauffman.com /blogs
© 2011 Charles Kauffman