The A.I. Effect, Plus the Vast Spending Shift Thanks to Older Workers and Wealthy Boomers
The potential effects of A.I. on marketing to older consumers, plus opportunities in age tech for writers, and the "die with zero" movement.
If there’s been one predominant question of 2023, it’s:
“What effect will A.I have on ____________?”
Some of you have already asked that question with regard to marketing to older consumers.
So, for the second episode of the Longevity Gains podcast, Jerod and I tackle that question from several angles.
In the process we reveal just how unique the longevity market is, even as we highlight how artificial intelligence is going to take a while to fully reveal how disruptive it will be.
The show is now on Apple Podcasts as well (Spotify coming soon).
If you prefer to listen over at Apple, please consider leaving a review or rating for the LG podcast … it truly helps, thank you!
Age Tech Opportunities for Content Marketing Pros
We’ve already explored a fraction of the opportunities in age tech for entrepreneurs. Beyond that, there will be a large need for writers, marketing consultants, and other content creators that will serve the messaging needs of age tech firms big and small.
Venture capital funding for age tech startups has been shockingly low until just recently. Technology entrepreneurs are finally taking note of older consumers after routinely dismissing this lucrative segment of the population. But with the demographic shift we’re all staring down, this must change and is definitely beginning to.
Part of the delay is due to the all-too familiar misconceptions and stereotypes that say older people lack enthusiasm for technology. And yet, The Longevity Economy Outlook report (PDF) paints a much different picture:
In 2018, the 50-plus age demographic spent a very substantial $140 billion on technology (compared with $136 billion among the under-50s). Tech demand among the 50-plus population is expected to surge in the coming decades (reaching expenditure of $623 billion in 2050).
Beyond wearables and monitoring technologies, things get serious with age tech going forward. Think robotics and intelligent automated systems for caregiving. Advanced biotechnology and nanotech treatments, virtual reality applications will support exploration and interaction.
As things kick into higher gear on the funding front and existing brands tap into the longevity market, opportunities arise. There will be a need for savvy marketing professionals who understand the unique needs of older consumers, and serve the needs of startups and legacy brands alike. Communication services and consulting will be in high demand.
In this case, your audience will be other companies serving people in various stages of the second half of life. But you’ll still have to know how to speak to a particular market segment to advise and serve the content needs of companies in the space.
Perhaps you’ll start an email newsletter called Finely Aged Marketing dedicated to business topics related to the longevity market. Older people don’t want to be treated as “old,” so company messaging must reflect that, along with generationally relevant content.
Simultaneously, there are copy, design, and tone-related issues to take into account for older consumers. Your newsletter can also curate other valuable content related to marketing in the lucrative longevity economy.
This is a natural vehicle to create awareness of and promote your writing and/or marketing consulting services. In each issue, you’ll include a blurb that links to a site that markets your services.
From there, you can productize aspects of your offerings, and promote relevant software and training as an affiliate, or maybe create an influential conference in the space. Other opportunities include book deals, high-dollar coaching, and a subscriber-based virtual community.
Finally, you’ll be privy to angel investment opportunities in the longevity field. Your economic home run may well be having access to these opportunities. If you’re currently a freelance writer or marketing consultant, this is one area within the longevity economy to consider.
Longevity Gains Premium will prepare you to specialize in marketing to older consumers. Join us!
The “Die With Zero” Movement
More people in the second half of life who have a strong financial foundation are opting to spend their money on themselves. Just another reason why the new attitudes and behaviors of the 50+ consumer need to be re-thought by marketers who stop marketing to them. Time to blow up the sacred 25-49 year old media target! It’s very last century.
The above is a take that caught my eye from Michael Clinton, author of ROAR Into the Second Half of Your Life, on LinkedIn. So I looked into this trend, and it’s a real thing.
It’s best explained by the book Die With Zero by Bill Perkins, who advocates for helping children and other beneficiaries earlier in life instead of making them wait for you to pass on. Meanwhile, older adults free up more cash to create a higher standard of living, making their later years truly golden via increased spending.
It’s no secret the Baby Boomers are sitting on an immense pile of money. If the “die with zero” trend catches on broadly as Clinton suggests, this is an entirely new facet for marketers to consider beyond the longevity economy flywheel. This may be, in fact, the spending behavior we’re already seeing from Boomers who have been propping up the economy this year while younger generations struggle.
A man who hopes to 'die with zero' says inheritances aren't the best way to pass wealth to your children (Business Insider)
The Rise of an Older Workforce
A whopping 150 million jobs will shift to workers over the age of 55 by 2030, according to a new global study from Bain & Company. In the Group of Seven countries, Bain predicts, older and experienced workers will make up more than quarter of the workforce by 2031.
This piece from CNBC reinforces much of what we already know, but what’s important is the drumbeat aimed at employers to recruit and retain older workers is growing louder and will only increase.
“Fewer young people are entering the workforce, due partly to lower fertility rates, partly to longer education,” Bain added. “According to OECD data, a long-term trend toward earlier retirement is slowly going into reverse.”
That can also be seen in the recent “unretirement” trend — in which retirees rejoin the labor force — driven by a hot job market, rising inflation and reduced Covid-related health risks.
Again, this is the shift that accelerates the longevity economy beyond wealthy Baby Boomers spending in retirement, as older people begin to work and spend longer en masse. It also opens the door to online education opportunities for savvy entrepreneurs. It’s going to take significant investment to realign the workforce:
That can be done by equipping them with the skills needed in the next 10 years, according to Bain. For example, 22% of respondents aged 55 to 64 said they need more tech skills.
‘Massive shift’: Older people will exceed a quarter of G7′s workforce by 2031, report says (CNBC)
Retiring Retirement
More Americans are continuing to work well into the typical retirement years. Government numbers indicate the labor force participation rate for men between the ages of 65 and 69 rose from 28% in 1995 to 39% in 2019, while 30% of older women continued to work, up from 17%.
Another interesting media shift to watch is the transition from traditional retirement savings and money management advice to articles about “second acts” and guidance on extended careers for older people. Publications like Kiplinger are increasingly modifying their editorial focus as the new reality about retirement comes into focus.
Beyond 65: Redefining Retirement and Embracing a Purposeful Second Act (Kiplinger)
The interrelated point of the three news items above is clear: the longevity economy is already here, and those who wait much longer will be scrambling to catch up while missing out on a lot of low hanging fruit.
Keep going-
Brian