Part Two of Three: This golden egg can be yours.
According to the Milken Institute the spending power of global consumers age 60 plus will nearly double in the next decade!
According to the same report, in 2010 the spending power of consumers age 60 plus will grow to 15 Trillion by 2020, up from 8 Trillion just five years ago.
An article appearing in Baby Boomer Magazine recently reported that Baby Boomers, those born between the years of 1946- and 1964-now between the ages of 49-67 account for 70 % of the total net worth of American households or 7 Trillion of wealth.
Furthermore, it states that baby boomers account for a dramatic 40% of total consumer demand and own 80% of all money in savings and loan associations and have more discretionary income (wealth) than any other age group.
As a baby- boomer myself and managing many millions of dollars of baby boomers wealth, I can attest to the fact that we are on the verge in my humble opinion, of writing a new chapter on what promises to be a retirement revolution.
Every revolution needs a hero, and this hero is no other than yours truly and anyone aged 49-67!
If you look back we are responsible for some of the greatest discoveries in human history from computers, to space travel to the internet.
The truth of the matter is that baby boomers are redefining what retirement is. In the past, the retirement mentality was based on dependency and decline. Today, the new retirement mentality is based on opportunity and balance.
Does it not seem reasonable to assume that with this much wealth and an abundance of life experience that a super economic power is emerging?
According to Oxford Economics, the Longevity economy is already a major contributor to the economy. By 2032 it’s projected to make up 52% of the US GDP!
On a Global perspective, the Longevity economy is the third largest economy in the world after the economies of the US and China as reported by Oxford Economics.
The point here, is that todays 50 plus are creating a transformation in the delivery of products, new trends and business models, creative technologies and great investment opportunities.
New technologies such as voice monitoring and remote monitoring will grow at unprecedented levels.
Telemedicine which allows patients to be monitored at home without a physician or requirement of going to nursing homes will become the norm. Sensor based systems installed in homes will allow the transmission of live data to physicians saving substantial amounts of money in health care costs.
Older Americans are working longer and contributing to the economy where in the past it was considered that retirees were a drain on economic output.
A 2011 study by Met Life Foundation/ Civic Ventures found that more and more people from the age of 44 to 70 were in an encore career and growing.
According to the Ewing Marion Kauffman Foundation, people in their 50’s and 60’s start businesses at twice the rate of much younger age groups.
A study by Merrill Lynch suggests that 71% of pre-retirees would include some work in their retirement years, thus contributing to an ever growing economy.
Companies such as Veeva Systems, Johnson and Johnson, Microsoft, BMW, OXO, Apple and others are creating new products and working environments for older age groups.
We are now seeing fascinating advances in the area of health and wellness emerging from genomics, medicine and technology.
Baby Boomers are refusing to opt for the traditional aging process and refusing to slow down and rejecting the tyranny of of chronological age.
Conventional bound thinking of previous generations will be a thing of the past. In the past century the American lifespan has increased by 27 years. Baby boomers are the first generation ever to have the opportunity for a healthy productive second life.
Baby boomers also want a balanced life and the desire to age gracefully and die with dignity preferably at home.
In short, don’t believe everything you hear about doom and gloom with respect to the aging of our society.
Clearly, the aging demographics massive impact on global markets, the attributes of a mature workforce, the tools to make our older years purposeful and financially secure, coupled with innovations in the health care industry are truly mind boggling.
Clearly, with a properly assembled wealth strategy, you too can be part of the solution by creating meaningful wealth for a life well lived.
Part 3 of this series will continue next week with how we as Canadians are often our own worst enemy when it comes to investing.
Live Well. Invest Intelligently.
21 November, 2015 Financial Planning