(Related: 10 Things Advisors Can Do When Snowbound
“It’s a young person’s game.” How often have we heard that? As we age, we worry about being sidelined. There’s even a board game about “Downsizing” based on the TV series “The Office.” As Baby Boomers age, we see younger people with a far better grasp of technology taking center stage. But there’s hope!)
The Economist magazine came out with “The World in 2020,” a collection of forward-looking articles. One talks about the “The Decade of the Young Old Begins.“ It’s worth a read.
Here’s the scoop. The Japanese have developed a demographic for many people within the age bracket of 65 years through 74 years old. They’re the “Young Old.”
I know what you are thinking: “If only there was a cool acronym.”
There is! People ages 65 through 74 are the “YOLDs..
This group of people are in good health. They are active. Your gym likely has plenty of them. They might have retired from the workforce, but they have no intention of retiring from life.
The article points out this has an effect on the insurance industry.
Retirees were expected to leave work and start sitting in a rocking chair, gazing at sunsets. They wanted a defined benefit pension check or a monthly annuity payment. No longer. The YOLDs want to actively manage their retirement assets!
The YOLDs are pretty rich. They are getting richer. This makes sense. If Baby Boomers are wealthy as a demographic segment, this “segment within a segment” should be doing pretty well too. They have the money to travel and enjoy hobbies. They want to do things. This might mean working longer, taking on another job after formally retiring and maybe even starting a business.
Here’s the bottom line from a financial professional’s point of view. If your clients are Baby Boomers and are thinking, “We aren’t the biggest demographic anymore,” they are likely entering into the YOLD stage.
Businesses will cater to the YOLD clients.
Less demographically savvy financial professionals might ask, “How we crack the Millennial market?” while forgetting that those YOLD clients are part of a new, desirable demographic that’s active and rich.
— Read How to Order Wine Like a Boss (Without Paying Like One), on ThinkAdvisor.
Bryce Sanders is president of Perceptive Business Solutions Inc. He provides high-net-worth client acquisition training for the financial services industry. His book, “Captivating the Wealthy Investor,” can be found on Amazon.