Here’s a fabulous report by Roy Morgan Research vividly explaining the huge and increasing economic power of the older consumer in Australia.
Download this Roy Morgan study here.
- In terms of gross wealth 55 plus hold $2.9 trillion or 49% of Australians’ household wealth. This rate of growth is way beyond the growth in population. Put another way – the overall growth in Household wealth over the period 2004 to 2010 was 53% but among the 55 plus segment, wealth grew by 84%.
- In terms of Net Wealth (ie assets minus debt) the 55 plus segment now has 56% of Australian household net wealth (2.7 trillion $s). This is up from 45% or $1.5 trillion in 2004. A growth of over 80% in six years – this is almost twice the growth recorded among the total population.
- With 56% of the nation’s household wealth held by 25% of the population this 55 plus segment is doing well and getting ever stronger.
This is not just a function of their increased asset value but is also contributed to strongly by increased participation in the work force.
- Now one-in-three people aged 55 plus are in the workforce (up from 22% in 1998).
- This is a greater increase than shown for the total population. Indeed the 55 plus segment now represents 17% of the workforce – up from 10 % in 1998.
This gives rise to the potential for spending in a number of areas such as new cars and caravans, home renovations, financial planning and services like club membership, house cleaning and hairdressing, and theatre going (less likely to spend on mobile phones, personal grooming, technology and cinemas). Moreover among those aged 55 plus still working spending is relatively high in all categories. So employment has this ‘double whammy effect’.
Here’s a simple portrait of a 55 plus Australian. She (or he) is:
- More likely to own their own home ( 70% Vs 35% total pop) less likely to be paying off or renting
- More likely to be married (66% Vs 51% )
- Lower income ( median income for an individual 55 plus is $22K Vs $29K or for a household
- $41K Vs $73K)
- Lower education( 19% tertiary Vs 25% )
- Higher wealth
The report concludes: “…. this asset can only be fully realised when the political and commercial will exists to listen to and engage with this potentially powerful sector”.
Couldn’t have said it better myself!
Thanks to Gil Walker of Evergreen Advertising & Marketing in Melbourne for sending this through.