When individuals turn 65 (or 66 depending on when they were born) they will most likely do three things. These are predictable behaviors for the majority of this target market. It is behavior that can be marketed to, behavior that will follow a common path for the following 10 years after they engage in this behavior. Individuals who engage in this behavior will be making life-changing choices using funds that they already have allocated in their monthly disposable income and they will make these choices regardless of what the government does. The only difference will be the type of choice they make based on government action. The question then becomes on what information will they make these choices?
So what are the three things that most individuals who reach the standard retirement age do?
- Sign up for Social Security.
- Automatically be enrolled in Medicare.
- Purchase a supplemental health plan, either a Medicare Supplement or a Medicare Advantage.
This is one of the only times in a person’s life where we can predict with a fair degree of accuracy what a target market’s “predictable buying behavior” will be. And we can pre-determine the products they will be looking to purchase using money they “already” have.
But first, let’s look at the importance of Social Security in a retirement plan.