In this modern age, with the rise and availability of premium quality healthcare, coupled with diet-conscious people actively seeking out healthier lifestyles, it’s no wonder that the population of silvers (60 & over), is dramatically on the rise. So much so in fact, that by 2035, people over 60 will account for a third of the world’s population. That’s an awful lot of bad backs!
But all joking aside, this is an interesting development, as people aged 60 and older will drive more than 45% of consumption growth in North America and nearly 60% in Western Europe, Japan and South Korea over the next 15 years. Thus, you’re never too old to go shopping. Which is precisely why retailers need to start doing their research so that they can better understand the buying habits of the silver tsunami that’s on its way.
How is this going to affect the modern marketplace?
Ultimately, it really depends on the industry. We can’t really see this having too much of an effect on the toy industry for example…actually, having said that, with more over 60’s there will invariably be more people with grand-children, and we all know how grandparents like to spoil their little rascals!
Then of course, you have to consider the age demographic. By 2025, those who were born in the mid-sixties, will be in their 60’s! These silvers will almost certainly be able to keep up with the rise in technology, as many elderly people already are.
Anyway, that’s enough speculation for now. Let’s take a look at what we know:
Over 60’s spending characteristics
- There are less occupants living in an over 60’s household. The average: 2
- Generally, over 60’s have a much higher net wealth than younger households
- The majority of over 60’s in the west are “silver surfers” taking their shopping online
- Many seniors are now working well into their 60’s
- In general, they are behind the general population with regards to technology, though they’re certainly playing catch up
- Whilst over 60’s households spend less on average, this can largely be accounted to the fact that the households’ are smaller, as opposed to silvers spending less money
- In the west, over 60’s spend more on average per one person
- People 75 on overspend a significant amount less on dining out, clothing, and other luxuries; however, they do spend more proportionally on housing basics
The biggest developments
Home Delivery: The biggest developments that are taking place with the rise of silvers over 60 is home delivery services via e-commerce websites. In general, more over 60’s have their groceries delivered to their home, whereas millennials and the younger generation spend a significant amount more on food delivery services such as “Just-Eat.”
So, retailers who aren’t currently focusing all that much on e-commerce and home delivery, should almost certainly start taking steps towards implementing a streamlined services for older consumers to take advantage of.
Travel & Leisure: Over 60’s and the baby boomer population in general have never been shy about how much they love to travel, nor would they ever be afraid to spend their money. People aged 65-74 out spend the population on average when it comes to travelling and will almost certainly continue to do so.
As such, you can expect travel and tourism companies to up their game and focus more on the aging market, as there is almost certainly going to be an even higher demand in the years to follow.
Healthcare: Very soon, over 60’s will account for over 26% percent of the global populations spending on health care services. We will almost certainly experience in a rise in the amount of tech and gadgets being thrown into the mix, with the aim of keeping insurance costs down and reducing the need to visit a doctor so often. For example: wearable tech and Internet-connected service providers.
And of course, whilst we’re on the subject of health care, it’s important to note the fact that a rise in silvers, means a rise in elderly people in their twilight years in need of regular support. This will invariably put a lot of pressure on governments public and domestic spending, so we can expect to seem some innovations in that regard, in order to accommodate the higher demand.
We’re less worried about getting older
And in some cases, we’re looking forward to it. Sure, most people don’t like the idea of growing old too much. However, the thought of having no financial worries, being able to travel around the world as and when you want and being able to enjoy a relatively healthy and active retirement is something that we can all look forward to. The rise in silvers and the average age limit being on the rise is proof that getting older, isn’t quite as scary as it used to be.
Retailers take heed: the silver tsunami is on its way. The question is, what are you going to do to accommodate it? Are you going to ride the wave and strive to understand the aging consumer in order to tailor your marketing to their needs? Or will you remain rigid in your oppose and be swept away with the tides? The decision is yours!