Cecily O'Connor
RedwoodAge.com
While baby boomers are wealthier than previous generations, not all members of this influential group are considered affluent.
One in 10 boomers can claim the title, "boomer elite," with at least $150,000 in annual household, pre-tax income, according to a study by market researcher Focalyst, a joint venture of AARP Services, Inc. and The Kantar Group. Retired boomers with at least $100,000 are also considered elite. (Both figures were adjusted for inflation to 2004 levels).
While elites make up 9 percent of the entire boomer generation, they plan to purchase big-ticket items such as technology products, furniture and appliances at almost twice the spending rate of the average boomer in the next year. That makes them very attractive to marketers, according to Focalyst, which surveyed roughly 30,000 U.S. adults over the age of 42.
Adjusted for inflation based on 2004 levels, Focalyst said this is the wealthiest generation to head into retirement.
More than 90 percent of boomer elites are married, compared to 69 percent of all boomers. The market value of the home is $519,000, compared to $262,000 for the rest of their counterparts. Ninety-two percent of elites are college educated and 75 percent consider themselves to be in good or excellent health.
Boomer elites also are media hounds, too: 91 percent watch TV; 87 percent read a newspaper or magazine; 76 percent listen to the radio; and 75 percent use the Internet. About three-quarter of the online boomers read news, making that their top online activity after email, according to the Pew Internet and American Life project.
Retirement Planning
Elites are also fully engaged in planning
for their retirement, and comfortable making their own financial decisions. One
third rely on outside advice to steer their financial planning. Ninety-five
percent have some sort of savings or investments, versus 75 percent for the
total boomer generation.
"Boomer elites pride themselves on having control over their finances so appealing to their need for information but ultimately helping them feel in charge of their financial destiny is key," said Heather Stern, Focalysts' director of marketing.
Many elites also view real estate as an important investment; 40 percent of elites have a real estate investment other than their primary resident, compared to 18 percent of the overall boomer population.
