The Longevity Megatrend and the Rise of Elder Influence

Consumer spending by older people is propping up the economy right now, while younger people struggle to make ends meet.

Whew … eight weeks of lengthy articles to kick off the Longevity Gains newsletter. Are you ready for a catch-up week? If so, you can see all the articles here.

I usually write LG over the weekends, but took the last one off to spend with my kids for an extended Father’s Day. Besides, I’ve been planning to add some curation to the newsletter, and this seems like a good time to start.

There are more in-depth articles coming, plus some cool additional features that I’ll let you know about soon. For now, let’s take a look at some recent news items together with my commentary.

The Longevity Megatrend

Americans over age 65 doubled in size from 8% in 1950 to 16.9% in 2020, according to data from Statista. Statista also estimates the number of older Americans will represent more than 20% of the U.S. population by 2030.

A megatrend is a shift that affects the entire world, and the longevity economy is certainly one, along with changes brought by climate change and artificial intelligence. While climate change is definitely not good and AI has clear potential dangers, you may be surprised to learn that 56% of Americans say the aging of the population will have a negative impact on the country. This is likely somewhat due to typical ageism, but also the misunderstanding that older people are an inherent drain on resources instead of a source of economic growth.

This piece from U.S. News & World Report covers familiar ground for Longevity Gains readers, including unretirement, extended healthspans, and the general wealth and spending power of older people compared to the rest of the population. But it’s worth a read for general context and validation of the longevity economy in general.

> Megatrends: The Longevity Economy

Baby Boomer Bucks

If not for the aggressive spending by Boomers … overall consumer spending would have been even more negative.

It’s never a good sign when most of the working population is struggling to get by. Gen Z, Millennials, and even Gen X are cutting back on spending as Baby Boomers spend more. 

One limited explanation is that older people are spending more due to a spike in Social Security payments. But higher income Baby Boomers are spending more as well, so it’s more likely attributable to a post-Covid splurge in travel, dining, and other aspects of living a vibrant life.

The key point is this is only the beginning of the shift. As Gen X keeps working past retirement age, the increased spending will come less from splurges from savings and more from continued economic activity driven by active citizens who won’t take kindly to being ignored.

> Gen Z and Millennials are Scrimping. Boomers? Living It Up

The Rise of Elder Influence

TikTok is gaining traction with older users, so brands are following them there, said Mae Karwowski, founder of Obviously, an influencer marketing agency that connects companies with content creators.

Interesting New York Times article on the rising number of older social media influencers, including 91-year-old Jenny Krupa who broadcasts from the retirement home she lives in. One commonalty among these older content creators is the production help and encouragement of their social-savvy Gen Z relatives.

It’ll be interesting to see what happens with content entrepreneurs who build their own platforms. Much of the early blogging and podcasting crowd are Gen Xers who are getting older themselves, and these are the people who will likely have the most empowering influence over other older people as the Longevity Economy becomes an inescapable aspect of the broader economy.

A thought on language: The word elder conjures mental images of wisdom and power, while elderly brings to mind frailty and weakness. Interesting, and our word choices will be crucial when communicating with the longevity prospect.

> As Older TikTok Creators Flourish, Brands Are Signing Them Up

The Need for Seasoned Marketing Talent

“Our latest research shows that experience is too often devalued in the marketing profession,” said Alison Simpson, president and CEO, CMA.

We know that older people are conspicuously absent from advertising in a way that doesn’t make economic sense. And we also know that the advertising and marketing industry is more agesist than most (which is saying a lot).

This brings me to a similar point that I made in the previous item. I think we’ll see a period of entrepreneurial flourishing leading up to 2030, which many call a tipping point where the impact of older consumers is so obvious that even the most ostrich-like companies will no longer be able to ignore what’s happening.

That means new boutique agencies and an army of freelancers who thrive by specializing in the over 50 market and are part of the market themselves. Add to that a huge amount of activity from older entrepreneurs who develop new products and services. As we’ll see, that market is actually a ton of different slices of consumer and business prospects who are operating at various stages of later life, with a range of worldviews and lifestyles, rather than a homogeneous demographic.

> Nearly Half of Marketers Say Ageism Is Tolerated More Than Other Forms of Discrimination

The Anti-Retirement Mindset

Choosing how we spend our time is most important, says this advisor in the eighth decade of life.

Here’s a piece by and about Scott MacKillop, the 72-year-old CEO of First Ascent Asset Management. His thoughts on modern retirement planning as the population gets older are interesting, but it’s more instructive to understand his perspective when it comes to why he has no interest in retiring. Seeking out examples of this mindset will help you better craft content and copy for the longevity prospect.

> What Retirement Planning is Really About

That’s it for now. See you next week with another in-depth article on an important element of the longevity economy … coming soon!

Keep going-

Brian