Mary Furlong & Associates' Boomer/Senior Market Report
Exploring the 10 Trends Powering the Age Boom
December 2007 - Vol. 4, No. 6
In This Issue:
Dear Friends and Colleagues,
Hope this holiday season brings you every joy. We are so grateful for the ideas that you share, the products and services you create and the good works that you do. I am writing this column from my home office.
Taking a page from Park Avenue in New York and the Country Club Plaza in Kansas City, Mo., we have lit all the trees in the garden. It makes it cozy on a winter day. The other news here is our 10-week-old Golden Retriever puppy, Annie; she brings joy and surprise and a bit of danger at every turn -- just like an internet start-up. She actually belongs to our oldest son Daniel -- but we get visitation!
We had a full fall with lots of conferences and idea sharing. This issue presents some of the highlights. It also provides a great overview to our upcoming 2008 What's Next Conference in Washington D.C.
We believe this will be the best event to date. We have brought together top thought leaders from media, digital marketing, healthcare, financial services, and experts in the field of boomers and seniors.
Given the venue, we have added some of the top policy leaders in Washington and provided a great venue -- the historic Omni Shoreham Hotel. Again, this is the preconference for NCOA and ASA. Read about these hightlights in this issue.
Also of note are some of the insights related to caregiving. The holidays are often the time we take the time to notice the changes in all of the lives of our loved ones. Sometimes, these result in a family coming together to learn about resources. We will link to some of the latest research in our newsletter.
I am quite optimistic about 2008 -- never before has there been so much talent focused on the needs and interests of the boomers and the seniors. Imagine what we might create. So -- to you and your loved ones -- may every joy of the season be yours. Do stay in touch with us.
Here are some of the highlights of What's Next. On the topic of the future of digital media: Don Jones, VP of Business Development, Qualcomm; Mark Hines, Associate Director, Mature Segment, Verizon Wireless; Elisa Camahort Page, Co-Founder, BlogHer; Dmitriy Kruglyak, CEO, Trusted.MD Network; and Valerie May, Editorial Director, Special Projects Consultant, Web Strategy Operations, AARP Services, Inc.
To learn about brand building for the boomer market and cause-related marketing, we will feature Belinda Lang, Vice President, Consumer Marketing Strategy, American Express Company and Emilio Pardo, Chief Brand Officer of AARP.
To discover new directions in the businesses interested in aging, meet and learn from the new President and CEO of AARP Services, Larry Renfro, and some of the partners of ASI. To discover the latest research on financial needs of older adults, especially caregivers, get the latest from Dr. Sandy Timmerman, Director, MetLife Mature Market Institute.
Meet some of the leading entrepreneurs developing companies to serve this marketplace: Jeff Zimman, Posit Science; Clint Korver, DecisionStreet; Wendy Beerbower, EquityKey and Bart Johnson, President, Financial Freedom Senior Funding Corporation. Talk with some of the Venture Capitalists that are investing in this marketplace, like Andy Donner of Physic Ventures.
Finally, enjoy interacting with the best selling authors who write about the issues that matter: Gail Sheehy, author of Passages, Men's Passages and Sex and the Seasoned Woman: Pursuing the Passionate Life; Pepper Schwartz, PRIME; Myrna Blyth, founder of MORE, author of How to Raise an American; and Jan Yanehiro, broadcast journalist, and author of This is Not the Life I Ordered.
For those who know wellness and consumer-directed healthcare is the future, you will have a chance to listen to the latest from the analysts, reporters, entrepreneurs who are serving this fast growing marketplace. These include: Mollie Katzen, Moosewood Cookbook; Dr. Brent Ridge, Vice President, Healthy Living, Martha Stewart Omnimedia; and Deborah Rozman, HeartMath.
Over 80 percent of our sponsors have renewed. These include: AARP, AARP Services Inc., Microsoft, Posit Science, Decision Street, HeartMath, Longevity Alliance, Springboard Press, Met Life Mature Market Institute, The Stress Institute . In addition, Yahoo!, BoomJ and Equity Key have joined in as a sponsor. Marketing partners include: ASA, ASA Business Forum on Aging and BlogHer.
There is more: Congressman and keynotes to be named in January. Sign up now -- we are offering a special "best rate" to our community of newsletter readers. You may sign up here.
Now – as to the highlights this fall.
It started in September at the Chicago at the Consumer Directed Healthcare Conference where Wendy Borrow Johnson of BoomJ led a panel on how to market to women in health care. I was really impressed by the gathering of talent and the insights they shared. Meg Walsh, managing partner of CommonHealth, has her hand on the pulse regarding digital marketing and the health care consumer. We do know that women are the Chief Health Officer of the family -- often making decisions for her children, her spouse and her parents and in-laws.
In October I attended the Online Community Summit at the Ramekins Cooking School in Sonoma. This is always a "must do" on my calendar. As usual, Jim Cashel and the Forum One team assembled a group of top-notch thought leaders.
It was fascinating to hear the story of how companies, foundations and non-profits are using community tools that corporations like LiveWorld, SolutionSet and Lithium are providing to connect with their consumer base.
This conference is always "part reunion" as thought leaders Jed Miller (Revenue Watch Institute), Anne McKay (Consumer Reports Online), and Jenna Woodhul (LiveWorld) gather to hear the latest insights.
Of particular note was learning about the strategy of presidential candidate Barack Obama. I learned from Michael Slaby, new media strategist of Obama for America, that 1/3 to 1/2 of the campaign's web strategy was aimed at social networking sites like Facebook and My Space, as opposed to the campaign's own site. (I suggested that we connect, as most voters are either boomers or seniors!)
(Speaking of social networking, Mike McCamon has some interesting thoughts on his blog. Scroll down to "social media 2.0.")
Next was the West Coast Autumn Series of the American Society on Aging. We gave a presentation on entrepreneurship and the 50+ market. I was surprised to see the room full of those looking to explore their Encore career. The term comes from the work done by Marc Friedman, founder and CEO of Civic Ventures and the author of "Encore: Finding Work That Matters in the Second Half of Life."
Why an Encore career? That's simple. Some boomers want to leverage talents and skills acquired in their first career and apply them to a new challenge. Others have run the numbers of what it will take to get them from ages 60 – 102 and can’t see how to make them work without a new career. Taking pages out of our book, "Turning Silver into Gold," we share the biggest places for opportunity.
It was wonderful to learn about the ideas of some of the workshop participants and to meet some of the entrepreneurs like the CEO of SilverRide, a company that uses Chrysler PT Cruisers to provide transportation to older adults.
We did a similar workshop at the WomanSage New Middle Ages Conference in Orange County in November. Jane Glenn Haas and the women of WomanSage put on a great event. It was wonderful to see the response that Ciji Ware, author of "Rightsizing Your Life", had to her workshop -- it was attended by more than 80 interested women.
And again, I met entrepreneurs carving out their own niche. My favorite was a company that provided support for aging feet! There is a business opportunity there.
Though I had to leave the conference early, I understand that Dr. Pepper Schwartz delivered a well-received talk on a popular -- sex. A brief description in her own words:
"The lecture I gave was about encouraging women to embrace sexuality, love and romance at any age. It was particularly concerned with women in middle age (however they want to define that!) or women who have sworn off love and sex because of painful losses or rejections in their life. I wanted to show, through my own dating and love relationships since age 55, that we can be as passionate and as madly in love as we ever were -- or, we can find that in ourselves , even for the first time, at any age."
Pepper is a widely recognized sex expert who has written extensively on the subject. Her latest book is "Prime: Adventures and Advice on Sex, Love, and the Sensual Years."
From WomanSage, I went to Florida to the Design for Life Conference produced by the Ringling College of Art and Design. I learned a new concept -- service design and it rang so true. Sarasota is an interesting community -- many transplanted New Yorkers and many young retirees. There is a momentum there that is amazing. It caused me to think that what we need to create are Silver Enterprise Zones where new products and services can be tested for the boomer marketplace. What are the services that boomers need?
On a personal note, I am pleased to report that my mom is doing much better. Her relocation to the Villa San Ramon (CCRC) is going well. She is much healthier and her spirits are good.
We are in the process of leasing her home, figuring out where the furniture goes, finding storage, going through decades of photographs and more. If any of you would like a California sabbatical –- and want to live in a historic house in Danville with a pool and tennis court, for a year or two –- send me an email.
The other day, when I was visiting, the group in the lobby were talking about their legacy. I only wished that Beth Sanders of Life Bio were in the room. Boomers are going to want to find people to help record the life and the legacy and also help with the move. Take a look at Margit Novak’s site, Moving Solutions.
There is also a service business opportunity to help with the stress of caregivers. The recent Evercare study about out of pocket costs for caregiving released by the National Alliance for Caregiving was interesting. It showed that the direct cost of caring for an aging parent or spouse is $5531 per year, which is more than twice as much as previous estimates. The study can be found here.
More caregiving: The Woman Sage group is offering a Caregiving Cruise. Check it out at WomanSage.org.
The final highlight of my fall conferencing was the Marketing and Online Communities Conference in New York. It was so interesting to hear the story of Bree Nguyen of Warner Bros. Records. Bree is the Director of New Media and Community Marketing. She shared an amazing story of how she drove a music talent to the top of the charts using mobile and new media strategies. We hope to hear more from her in the future.
Bill Johnson and the team put together a great event. It was fun to reconnect with Belinda Lang of American Express and hear about her work in social marketing.
Interspersed with our external events, was the exciting work of our clients. We are delighted that Decision Street is launched and moving forward. Check out the site and the new tools. Also, invite your employees to see what is the latest in eldercare by scheduling the Silicon Valley Council on Aging Generational Resource Center to your firm. Or, place your product in the GRC. And, learn if your pension is funded (or not) at AT PRIME’s new Pension Inspector. Participate in AARP’s Divided We Fail campaign and learn about their new member benefits. And, take a look at National Council on Aging and their Benefits Check Up.
Watch for news from these clients and others in 2008.
My favorite holiday ideas for you and your loved ones:
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For California lovers -- Richard Blair and Kathleen Goodwin’s book, "California Trip." They are two of the most talented photographers I know -- their home is in Inverness overlooking the ocean. They have captured the boomers and their memories.
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For the 20-somethings -- "The 4-Hour Work Week" by Timothy Ferriss. Also: Thich Nhat Hanh’s "The Art of Power."
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For those worried about the next generation, check out "How to Raise an American" by Myrna Blyth and Chriss Winston.
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For those trying to figure out interest rates: Alan Greenspan’s "The Age of Turbulence: Adventures in a New World"
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Also recommended: Tom Brokaw’s "Boom!" and Mollie Katzen’s "Eat, Drink and Weigh Less."
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More suggestions: For seniors, an iPhone for sharing pictures. And how about a a digital picture album? When you rightsize – space is an issue. Also, Posit Science software to keep the brain active; a gift certificate to Chico’s (for women only) -- beauty is no less important as you get older.
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Also: A subscription to Yoga Journal –- it's the latest thing at continuing care retirement communities.
Or how about a visit from you –- the most important. And if you can – bring a four legged friend.
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And lastly, my favorite book, Caroline Kennedy's "A Family Christmas." She captures in poems, stories and memories the real meaning of the holidays.
May you and your loved ones have the happiest of holidays – May the new year bring you every joy.
All the best,
Mary
Wall Street Journal Writers Offer Book on Retirement Planning
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Planning for retirement means making a lot of decisions, especially financial ones. To make that planning easier, the recently published Wall Street Journal Complete Retirement Guidebook by Glenn Ruffenach and Kelly Greene offers tips on tailoring a financial plan to suit your retirement lifestyle. Here's an excerpt from the book's introduction, reprinted with permission:
Today, in the space of a single generation, retirement for many has become a puzzle -- with dozens of decisions and far too much guesswork. Four changes, in particular, have made the process more complicated: extended life spans, the demise of traditional pensions, women’s entrance into the labor force, and the rising cost of medicine and long-term care.
Consider that the average sixty-five-year-old today can expect to live to age eighty-three -- and spend almost two decades in retirement. Only about one in three Americans is covered by a defined-benefit pension plan; in other words, retirees -- and not their former employers -- are now shouldering the risks and responsibilities for creating a paycheck in later life. Almost 60 percent of women are working outside the home; thus, couples increasingly find themselves trying to plan and coordinate two retirements instead of just one. Meanwhile, health-care bills -- even for those covered by Medicare -- already eat up one of every six dollars in Social Security benefits. The average cost of a one-year stay in an assisted-living center is almost $35,600, according to MetLife; the average tab for a private room in a nursing home runs $75,200.
These changes mean that questions about later life now abound. When should I retire? Have I saved enough money? Will my nest egg last as long as I do? Do I want to, or need to, work in retirement (the new oxymoron) -- and if so, what jobs will be available? Can I continue to live at home? Will I need long-term care? And what about my spouse? Should both of us retire at the same time? Do we see later life and how to fill our days in the same light?
The pages that follow will speak to all these issues and more. To help simplify your planning, we divide retirement -- and our chapters -- into two parts. In Part One, we begin by talking about time: figuring out the life you want to lead in your fifties and beyond. Again, it’s hard to pinpoint how much money you need in retirement unless you first have a good idea of how you want to spend your days. We’ll also talk about working in retirement, volunteering, relocation and how to keep your mind and body healthy. In Part Two, we turn to finances: how to tap and preserve a nest egg, when to collect Social Security and how to create an estate plan (among other essential steps). Finally, we leave you with success stories -- profiles of individuals who successfully made the transition into fulfilling retirements.
The good news is that retirement today, for all its changes and challenges, appears to be more gratifying than ever before. We know this first-hand. In almost a decade of reporting and writing about retirement for The Wall Street Journal, we have interviewed hundreds of retirees, would-be retirees and “former” retirees from all parts of the country. The lessons they have shared about life after age fifty have proved invaluable for the Journal’s readers. We trust that these insights and experiences will be similarly useful to you.
Find out more here.
Boomers’ Catch-22: Optimistic About Retirement but Not Well-Prepared
Thrivent Financial report reveals gap between expectations and retirement readiness
Over the next 20 years, 76 million baby boomers are set to retire. And while they are generally optimistic about retirement, their lack of financial preparedness suggests a possible future not necessarily as bright as they hope.
In the report Baby Boomers and Retirement: A Generation’s Catch-22, which is based on Thrivent Financial’s nationwide survey of 2,500 baby boomers, several paradoxical themes emerged:
- While boomers are generally optimistic about retirement, only 20 percent believe they will worry less about money than their parents.
- 71 percent of boomers cite a lack of money as the single greatest issue that might prevent them from accomplishing their envisioned retirement, yet most (59 percent) have not done any formal retirement planning.
- While 86 percent stated they would advise younger generations to start saving for retirement as soon as possible, nearly a quarter have not taken action toward saving for their own retirement.
Homes of the future will be more elaborate and luxurious, but not larger
From Canada comes a report that experts are predicting that in 10 years time homes will be more elaborate and luxurious but not larger. Technological automation, higher ceilings, more open and bright home interiors, more luxurious outdoor spaces and environmentally sound construction and amenities: those are new features of homes of the future.
More than 300 architects, designers, manufacturers and marketing experts interviewed last year predicted that the average home built 10 years from now will not be bigger but much more luxurious. People want their homes well-equipped, as they do their automobiles.
This trend began with baby boomers who started buying homes not just to meet functional needs but to fit a lifestyle. Dual master-bedrooms will thus become even more popular than they are now and will include sitting rooms, bathrooms, and walk-in closets.
The family room will get much larger, while the living room will continue to shrink. People will want their houses to be more open, airy and bright. They will ask for large kitchens with islands, fewer walls separating their dining rooms or family rooms, and recessed lighting. Plain white walls won't do; bold colors will be in.
Universal design, a concept that makes homes accessible to all people regardless of age or disabilities, will also find a place in new-home construction. Read more.
Baby boomers like active-adult communities
In more housing news, the National Association of Home Builders has some answers as to what baby boomers want. In a report released last month, the NAHB said that buyers ages 55 and up are more likely than other buyers to buy new homes, rather than existing homes, and that many of these buyers choose active-adult communities, restricted to buyers 55 and up. More findings.
Save the date! The Online Community Unconference East 2008
The Online Community Unconference East is the east coast of location of Forum One's Unconference series and will be held Feb. 21 at Baruch College/CUNY in New York. The event is an Open Space gathering of online community practitioners - managers, developers, business people, tool providers, investors - to discuss experience and strategies in the development and growth of online communities.
Though the actual topics to be covered will be determined at the first session, organizers expect the following sorts of topics, judging from previous conferences:
- Community Growth Strategies
- Emerging Technologies
- Blogs / Wikis / Workspaces
- Marketing & Online Communities
New Census Bureau Data Reveal More Older Workers
According to new data from the Census Bureau, nearly one in four people between the ages of 65 and 4 (23.2 percent) were in the labor force (either working or looking for work) in 2006, an increase from 19.6 percent in 2000.
Investors looking at social networking sites for baby boomers
Technology investors and entrepreneurs, long obsessed with connecting to teenagers and 20-somethings, are starting a host of new social networking sites aimed at baby boomers and older people. The sites have names like Eons, Rezoom, Multiply, Maya's Mom, Boomj, and Boomertown. They look like Facebook -- with wrinkles.
Study finds Medicare’s drug benefit substantially increased coverage among seniors
The share of seniors without drug coverage dropped significantly under Medicare’s new drug benefit, according to a Health Affairs Web Exclusive article based on a Kaiser Family Foundation, Commonwealth Fund and Tufts-New England Medical Center survey of more than 16,000 seniors.
Is getting into a "good" college really important?
Studies over the years have questioned whether top schools are worth the money. Now programmer and venture capitalist Paul Graham of the Y Combinator investment firm weighs in with his own thoughts in a compelling essay based on his own real-world experience.
Study looks at sex lives of boomers, seniors
The most comprehensive sex survey ever done among 57- to 85-year-olds in the United States finds that many older people are on the frisky side.
Older Canadians staying on job longer, study shows
Older Canadians -- especially women -- are staying in the workforce longer, a study by Statistics Canada shows, adding that continued employment among baby boomers nearing or reaching retirement age could help avert a "sudden and severe" labor shortage.
Amid labor shortage, job fair series targets older workers
Older workers and retirees, previously overlooked by companies, are starting to get more attention from employers faced with labor shortages caused by the mass exodus of baby boomers from the work force. Job fairs targeting this demographic are being held in 43 cities across the country over the next two months.
Read more articles here.
Boomer/Senior Market Report
Published by Mary Furlong & Associates3527 Mt. Diablo Blvd.
#128, Lafayette, CA 94549Telephone: 925-283-7698
http://www.maryfurlong.com