Demographics
Mature Market No Longer Begins at 50
Nearly 57 Million Americans Age 55-Plus
Those 55-64 Constitute "Working Mature"
65- to 79-Year-Olds Are "Young Retirees"
Those 80 and Over Constitute America's Elderly
Table 1-1: Projected Growth of Mature Population, 1998-2050 (number): From Age 55 to Age 80+
Through 2050, Mature Population Will Be Fastest-Growing "Lifestage" More Important Indicator Than Age
Regional Distribution of Mature Americans
Mature Americans Are Nation's Wealthiest
Financial Concerns Increase with Age
Educational Attainment Will Affect Future Mature 55- to 64-Year-Olds Most Likely to Be Married
Fewer Elderly Live in Family Households
Five Key Values Underlie Mature Behavior

The Market
1998 Market Estimated at Nearly $994 Billion
Figure 1-1: Estimated Share of Mature Market by Age Group, 1998 (percent and dollars): From Age 55 to Age 75+ Mature Americans Control Most of Nation's Wealth
Market Will Grow—Especially as Boomers Enter

Mature Americans as Consumers
Introduction
55- to 64-Year-Old Expenditures Contradict Myths About Mature Market
Retirement Age: The Good Life Begins
Healthcare Dominates Spending of Those 75-Plus

Mature Americans' Use of Media
Mature Adults Are Major Media Consumers
Older Adults Watch More Television Than 18- to 49-Year-Olds 75% of Mature Americans Listen to Radio Daily
Mature Americans Consume All Forms of Print Media Mature Consumers Read Direct Mail
Use of Electronic Media Growing

Marketing to Mature Americans
Marketers Have Come a Long Way
Mature Market Highly Diverse
Identify the Target Cohort
Age-Specific Advertising Can Be Deadly

Scope and Methodology
Americans Age 55 and Over Comprise Mature Market
Methodology

II. Demographics

Overview
Mature Market No Longer Begins at 50
Even Without Boomers, Mature Market Highly Diverse Mature Consumers Misread as Difficult to Please
Mature Market Worth Nearly $10 Trillion
Figure 2-1: Projected Growth of Mature Population, 1998-2050 (number): From Age 55 to Age 80+

Population
Nearly 57 Million Americans Age 55-Plus
Those 55-64 Constitute "Working Mature"
65- to 79-Year-Olds Are "Young Retirees"
Those 80 and Over Constitute America's Elderly
Table 2-1: Projected Growth of Mature Population, 1998-2050 (number): From Age 55 to Age 80+
Centenarians Increasing
Americans Enjoying Longer Life Expectancy
Through 2050, Mature Population Will Be Fastest-Growing "Lifestage" a More Important Indicator Than Age
Females Increasingly Outnumber Males with Age
Table 2-2: Percentage of Mature Population by Age and Gender, 1998 (number and percent): From Age 55 to Age 80+ Although Whites Dominate, Mature Population Becoming More Diverse with Time
Table 2-3: Mature Americans (55+) by Race, 1998 vs 2003 (percent): 5 Races/Ethnic Groups
Regional Distribution of Mature Americans
Table 2-4: Percentage of Households: By Geographic Distribution and Age of Householder, 1996 (percent): United States, Northeast, Midwest, South, West
Geographic Distribution of Mature Population by State Table 2-5: Geographic Distribution of Mature Households: By Age and State, 1996 (percent)
Most Populous States Have Most Persons 65+
County Data Show Where Elderly Gather
More Than 50% of 65+ in Just 10 States by 2020
Reasons Behind Residence

Employment and Economic Status
Mature Americans Are Nation's Wealthiest
Consumers 55-64 Have Average Annual Income of $35,201
Those 65-Plus Have Annual Income of $23,835
The 65-Plus Enjoy Higher Living Standards Than Any Elderly Generation in History
Two Tiers of Elderly: Either Well-Off or Poor
Minorities, Women, and Singles Fare Far Worse Than Whites, Married Couples
Figure 2-2: Poverty Rates for Americans 65-Plus: By Marital Status, 1993 (percent): Married Couples, Unmarried Men, Unmarried Women
Figure 2-3: Poverty Rates for Americans 65-Plus: By Race, 1996 (percent): White, African American, Hispanic
Men Retiring Earlier; Women Staying in Workforce Longer
Retirement Patterns Differ Among Occupations
Retirement Patterns Reflect Economic Needs
Women More Likely to Have Pensions in Future
Today's Retirees Rely on Employer-Based Programs, Social Security Many Boomers Will Continue Working
Financial Concerns Increase with Age
Life Cycle Is Changing
Will Boomers Be Able to Afford Retirement?

Education
Educational Attainment Will Affect Future Mature

Family Status
55- to 64-Year-Olds Most Likely to Be Married
Table 2-6: Marital Status of Mature Americans by Age, 1996 (percent): From Age 55 to Age 85+
More Elderly Women Than Men Live Alone
Children Present in Some Households Headed by 50- to 64-Year-Olds
Grandparenting Important for Mature Americans
Many Mature Americans Assume New Child-Rearing Responsibilities
Grandmothers Raising Grandchildren Alone Likely to Be Poor Raising a Second Set of Children Can Upset Best-Laid Retirement Plans
One in Five Grandparents Are Step-Grandparents

Living Arrangements
Fewer Elderly Live in Family Households
More Than One in Four Adults 65-Plus Live Alone
But Living Alone Need Not Imply Being Lonely
Many Who Live Alone Do So by Choice
13 Million Americans 65-Plus Still Drive

Health Issues
Physical Changes Accompany Aging
The Eyes: One of the First Things to Weaken
Hearing Acuity Also Diminishes with Age
Changes to the Skin
Sensitivity to Touch Diminishes
Menopause
Reduction of Sexual Functioning
Baldness or Thinning Hair
Heart Disease
Prostate Cancer
Diminished Strength and Flexibility of Joints
Manual Dexterity and Body Movement Can Be Impaired
Bones May Become Brittle
Oral Maintenance Becomes Increasing Concern
Reflexes, Mental Agility May Slow
Nearly Half May Spend Time in Nursing Home
Most Elderly Free of Serious Chronic Health Problems
Majority of 85-Plus Need No Help
Recent Trends Promise Better Health for Tomorrow's Elderly
Rate of Illness Down 11% in 1980s
Use of Assistive Devices Will Prolong Independence for Many

Psychographics
Individuation Increases with Age
Five Key Values Underlie Mature Behavior
Individualism Makes Mature Market Diverse
Birth Cohorts Give Insight to Mental Landscape of Mature Americans
Four Birth Cohorts Describe Today's Mature Americans
Depression Cohort Source of Many Stereotypes About Aging
World War II Cohort
Post-War Cohort Good Warm-Up to Baby Boomers
Boomers I Represent First Wave of Baby Boomers
Health a Key Factor in Autonomy, Self-Esteem
Appearance an Important Factor, Particularly for Women
Aging Perhaps More Psychologically Stressful for Men Americans Picture Themselves Younger Than Their Chronological Age
Growing Numbers See Maturity and Retirement As Time of Fulfillment
Volunteerism and Charitable Contributions
Senior Resources Stress Positives of Aging
Oldest Old Find Inner Satisfactions

III. The Market
Figure 3-1: Estimated Share of Mature Market by Age Group, 1998 (percent and dollars): From Age 55 to Age 75+

Market Size and Growth
1995 Market Exceeds $900 Billion
Table 3-1: Estimated Size of Mature Market by Age Group, 1995 (# of households, household income, aggregate income): From Age 55 to Age 75+
1998 Market Estimated at Nearly $994 Billion
Table 3-2: Estimated Size of Mature Market: By Age Group, 1995-1998 (numbers and dollars): From Age 55 to Age 75+
Bulk of Mature Wealth Is in Under-65 Market
Americans 65-74 Have $306 Billion in Aggregate Income
Americans 75 and Over Have Nearly $193 Billion in Spending Power
Mature Americans Control Most of Nation's Wealth
Table 3-3: Percent Owning and Median Value of Selected Assets by Age of Householder, 1993 (percent): Motor Vehicles, Homes, Interest-Bearing Accounts, IRA/KEOGH, Stocks/Mutual Fund Shares

Factors Affecting Market Growth
Market Will Grow—Especially as Boomers Enter
Boomers' Spending Ability Proven
Depression Cohort Being Replaced by Freer-Spending "Ikes"
Congress Likely to Amend Social Security and Medicare

Projected Market Growth
Market to Grow 26% in Next Five Years
Table 3-4: Projected Growth of Mature Market, 1995-2003 (dollars): Number of Households, Average Household Income, Aggregate Income

IV. Mature Americans As Consumers

Spending on Consumer Products and Services
Introduction and Notes
Table 4-1: Average Annual Household Expenditures by Mature Americans: By Age of Householder, 1995 (dollars): 15 Categories
55- to 64-Year-Old Expenditures Contradict Myths About Mature Market
Mature Spending Reflects Hybrid Cohort Traits
Retirement Age: The Good Life Begins
Healthcare Dominates Spending of Those 75-Plus
Aggregate Household Expenditures of Mature Americans
Table 4-2: Aggregate Annual Household Expenditures on Selected Items by Mature Americans, 1995 (dollars): 15 Categories
Mature Americans Important Consumers of Many Products and Services

Mature Consumers of Housing
More Housing Options Than Ever Before
Redesigning Retirement Communities
Less Lavish Housing Also an Option
Service-Oriented Senior Housing
Lifecare and Continuing Care Communities
Mature Consumers Pay for Home-Related Services
Table 4-3: Average Household Expenditures by Mature Americans on Household Operations: By Age of Householder, 1995 (dollars): 5 Categories

Mature Consumers of Food
Mature Consumers Spend $873 Billion a Year on Food
Table 4-4: Average Household Expenditures by Mature Americans on Food Eaten at Home: By Age of Householder, 1995 (dollars): 18 Categories
Mature Consumers Drive Growth of Vitamins, Food Supplements
Food Marketers Mobilize for Growth of Nutraceutical Market
Empty-Nesters Enjoy Eating Out
Survey Shows Dining and Entertainment a Key "Empty-Nest" Pastime

Mature Consumers of Healthcare Services
As Americans Age, Healthcare Expenditures Increase
Table 4-5: Average Household Expenditures by Mature Americans on Healthcare: By Age of Householder, 1995 (dollars): 8 Categories
Medicare Doesn't Cover Everything
HMOs Increasingly Vie for Mature Consumers
Loyalty to Physician One Fly in Ointment
Extra Services Like Transportation a Plus
Aging Boomers Already Forcing Changes to HMOs
Mature Consumers Purchase Bulk of Prescription Medicines

Mature Consumers of Apparel
Pre-Retirees Spend More on Clothing Than Consumers Overall Table 4-6: Average Household Expenditures by Mature Americans on Apparel: By Age of Householder, 1995 (dollars): 5 Categories
Wool Study Finds Pre-Retirees a Key Market

Mature Consumers of Financial Services
Mature Americans Important Consumers of Financial Services
Table 4-7: Average Household Expenditures by Mature Americans on Financial Services: By Age of Householder, 1995 (dollars): 5 Categories
Investments Supplement Income of Many
Table 4-8: Percent of Households Owning Asset Types: By Age of Householder, 1993 (percent): 7 Types of Assets
Longer Life Expectancies Create Market for New Financial Products
Lack of Caregivers Creates Market for New Services
Mature Americans Use Credit Cards

Mature Consumers of Vehicles
Mature Consumers a Significant Car-Buying Demographic
Table 4-9: Average Household Expenditures by Mature Americans on Vehicles: By Age of Householder, 1995 (dollars): 5 Categories
Generational Differences in Car Preferences

Mature Consumers of Household Furnishings and Equipment
Mature Consumers Continue to Invest in Surroundings
Table 4-10: Average Household Expenditures by Mature Americans on Household Furnishings and Equipment: By Age of Householder, 1995 (dollars): 8 Categories

Mature Consumers of Entertainment
Working Mature Spend Only Slightly Less Than Larger Households on Entertainment
Table 4-11: Average Household Expenditures by Mature Americans on Entertainment: By Age of Householder, 1995 (dollars): 10 Categories
Senior Golf Is Big
Fitness Activities Growing Among Mature Americans
Mature Are Key Market for Casinos

Mature Consumers of Travel Services
Mature Spending on Travel Services
Table 4-12: Average Household Expenditures by Mature Americans on Travel Services: By Age of Householder, 1995 (dollars): 9 Categories
Mature Consumers Express "Joy of Living" Through Travel
Mature Travelers Spend More, Stay Longer
Prefer Group Travel and All-Inclusive Packages
Cruises Also Popular
Historic Travel Also Popular with Mature Americans
Key Values Are Security, Value, Reliability, and a Learning Experience
Adventure Travel Big Hit with Mature Travelers

Mature Consumers of Assistive Living Technologies
An Emerging Market, Built on Technology
Other Technologies Available But Underutilized

Mature Consumers of Gifts
Mature Adults Spend Heavily on Gifts for Grandkids
Table 4-13: Average Household Expenditures by Mature Americans on Gifts: By Age of Householder, 1995 (dollars): 11 Categories
Grandparents Buy Gifts for Birthdays, Holidays, Graduation, and Other Special Occasions

Shopping Patterns
Over-55 Consumers Enjoy Shopping
Men Take on Greater Shopping Responsibilities at Retirement Shopping Patterns Vary by Age and Retirement
Mature Shoppers Value Value
Accustomed to Comparing Prices and Clipping Coupons
Service Part of Value Equation
Older Consumers Prefer Personal Relationships
Small Indulgences Mean a Lot
Mature Shoppers Willing to Try New Products/Brands
Older Shoppers Increasingly "Let Their Fingers Do the Walking"

At the Retail Level
Despite Their Purchasing Power, Mature Americans "Invisible" to Most Retailers
Little Amenities Make Big Difference
Adding the Personal Touch
Rethink Signage
Consider Sign Location
Lighting a Consideration
Grocery Stores: What Mature Consumers Look For
Special Services Can Have Big Appeal
Accommodate, Don't Discriminate

Retailer Profile: The Home Depot
Focus on Customer Service Includes Mature Shoppers
An Eye on Aging Homeowners
Knowledgeable Sales Staff
Lighting and Signage Clear and Easily Readable

Retailer Profile: Supermarkets
Supermarkets Try Variety of Strategies to Satisfy Seniors
American Stores Branches into Home Healthcare

Retailer Profile: Elderhostel
Nonprofit Opens New Doors for Thousands
Making Maturity a Beginning, Not an End

V. Mature Americans' Use Of Media

Overview
Mature Adults Are Major Media Consumers

Television
Older Adults Watch More Television Than 18- to 49-Year-Olds Yet Most Programming Ignores Older Viewers
Advertisers Chasing Audience That Has Left Them Age Groupings Obscure as Much as They Reveal CBS Attempts to Change Groupings
A&E and History Channel Also Target Mature Audiences Advertisers Prefer Younger Audiences, But Reasoning May Be Flawed
Mature Viewers Watch Evenings and Mornings; Not Late-Night Growth of Cable Creates New Programming Options Senior Channel Finds Backer
News, Movies, Sports Most Frequently Watched Adventure, Romance, and Triumph of Good Over Evil Are Popular Themes
Few Gender Differences Among Mature Audiences For Oldest Americans, Television Is Lifeline

Radio
Radio Has Nostalgic Appeal
75% Listen to Radio Daily
Country Music/News/Easy Listening Most Popular

Print
Mature Americans Consume All Forms of Print Media
Print Advertising Earns Most Respect
Growing List of Publications Targeted Specifically to Mature Audiences
Modern Maturity ,the Largest-Circulation Mature Market Magazine New Choices Focuses on "Living Even Better After 50" McCall's "PrimeTime" a Special Insert
Kiplinger's Retirement Report
Weider Publications Launches Three Titles for Mature Adults Senior Golfer Targets Upscale Retirees
More Targets Women 45 and Older
Age Wave Publications Target Boomers at 55
Other Mature Titles

Direct Mail
Home Shopping Appeals to Mature Consumers
Hundreds of Targeted Catalogs
Clothing Tops List of Items Purchased
Mature Consumers Read Direct Mail
Mature Consumers Demand Accuracy
Pre-Retirement Adults Object to Term "Senior"
Information Valued

As Are Long-Term Relationships
"Ageless America" Breaks Marketing Rules

Electronic Media
Use of Electronic Media Growing
Mature Adults Use Computers for Personal and Business Interests Mature Users Seek Content; Are Impatient with Graphics
SeniorNet: An Electronic Forum for the Mature Market
Primelife Advisory Network Seeks Electronic Input
Another PrimeLife Bills Itself as "Intermag"
NAMA Offers Online Discounts
WebTV a Hit with Seniors

VI. Marketing To Mature Americans

Marketing Fundamentals
Marketers Have Come a Long Way
Mature Market Highly Diverse
Identify the Target Cohort
Age-Specific Advertising Can Be Deadly
Five Key Values Motivate Mature Consumers
Autonomy and Self-Sufficiency Big Part of Equation
Balanced by Social and Spiritual Connectedness
Altruism Tied to Social and Spiritual Connectedness
Personal Growth Also a Goal
Revitalization Reinforces Internal Self-Renewal
Most Effective Ads Reflect Two or More Values
Subtlety Is Important
Grandparenting Theme Is Effective
Coca-Cola Spot Features "The Real Things" in Life
Pepsi's Intergenerational Spot Uses Humor
Partnership for Drug-Free America Does Grandparents Proud
Show Older Adults Breaking the Mold
Marketers Need Not Always Show the Unusual
A Picture Is Worth a Thousand Words
"Ageless" Theme Also Effective
Associate Ailments with Living, Not Aging
Build One-on-One Relationships
Test Market Humor
Humor More Important with Boomers
Older Consumers Like Storytelling; Will Sit Still for Longer Commercials
Some Practical Considerations

Use of Celebrities and Language When Marketing to Mature Americans
Mature Adults Starved for Contemporary Role Models
Use of Celebrities Not Particularly Important
Mature Adults Respect Proper Use of Language
Call Them "Mature Adults"; Avoid "Seniors" and "Silver"

VII. Examples Of Campaigns And Strategies Targeted To Mature Americans

Overview
Growing List of Marketers Taking Aim at Mature Consumers

Housing Communities and Services
Marketers Advertise Lifestyle
The Villages and Del Webb's Sun City Grand Stress Active, Country-Club Living
US Home's Heritage Communities: Now the Fun Begins
Covenant Retirement Communities Stress Communal Living
States and Cities Also Try to Lure Retirees

Food and Beverages
Denny's, Little Caesar's, and Wendy's Have Offended
But Wendy's Makes Comeback with Dave
Quaker Portrays Dynamic, Autonomous Individuals
Kellogg Effectively Targeting Wide Range of Audiences
Food Marketers Include Mature Consumers in General Market Advertising
Both Coke and Pepsi Have Effectively Targeted Mature Consumers
Few Coffee-Makers Target Mature Consumers
Ensure, Sustacal Draw Criticism for Youth of Models

Healthcare Services
Few Healthcare Providers Advertise Nationally
Kaiser-Permanente Uses Multi-Media Direct Marketing
Total Health 65 Conveys Right Attitude
Pharmaceutical Companies Increase Direct-to-Consumer Advertising
Pharmaceutical Companies Have Long Targeted Mature Consumers
Viagra Illustrates Age-Appropriate Advertising
Evista Also Advertised Effectively
Nabisco Goes Direct to Launch NutraJoint
Direct Marketing Also Effective with Cholesterol, Osteoporosis Medications

Apparel
Dearth of Clothing-Related Advertising
Sears Advertises Action Slacks by Levi Strauss
Vanity Fair Includes Older Women in Advertising
New Balance Demonstrates Importance of Product Over Positioning

Financial Services
Banks and Insurance Companies Produce Strong Advertising to Mature Consumers
Financial Service Companies Create Service Packages for Mature Clients
Prudential Campaign Utilizes Three of Five Key Values
State Farm Understands Life
MFS Investment Management Communicates Effectively

Automobiles
Saturn Sells Relationships—an Effective Strategy with Mature Consumers
GM Includes All Ages in Print
Nissan's "Life Is a Journey, Enjoy the Ride" Theme Reflects Mature Thinking
Ford Suggests Life Is More Fun Now That the Kids Are Gone
Dodge Offers Conversion Van as Vacation Home

Entertainment
Few Entertainment Companies Target Mature Consumers
Publishers Choice Videos
Sinclair Video Library Gets Sexy

Travel
Tour Companies, Resorts, and Travel Destinations Understand Importance of Mature Market
Club Med Modifies Pitch to Sell "Community"
Hilton Offers Senior HHonors Program
Not All Mature Travel Marketing Luxury-Oriented
Hertz and Avis Show Active Couples Going Places

Personal Care Products
Oil of Olay Boasts Memorable Ads
Rembrandt Targets Mature Audience
VO5 Takes Different Approach
Hearing Aid Marketers Face Hard Sell
FDS Portrays Bladder Control Problems as Part of Living, Not Aging

Appendix I: Examples Of Consumer Advertising And Promotions
Appendix II: Addresses Of Selected Mature Market Resources