Marketing strategists and commercial property owners in the UK are being urged to target the over 50s in a bid to combat the recession.
There are currently around 20 million people in the UK aged 50 or over which amounts to over one third of the population and they are increasingly financially secure. Research shows that this age group is far more likely to have substantial assets – with those between 55-64 having the highest disposable income of any age group. Therefore, this spending power is crucial to helping businesses through hard times.
Figures show that the over 50s hold 80% of the nation’s wealth with a combined disposable income of £175 billion. This is 30% more than that enjoyed by the under 50s, who are far more likely to have mortgages and other expensive commitments to consider. Some specialist companies like Saga have recognised this for many years. With research showing the willingness of over 50s to try new products and displaying a growing enthusiasm for technological gadgets, mainstream businesses are being urged by Wisebranding not to ignore the over 50s in their marketing campaigns.
The commercial property market is just one area of the economy that is benefitting from the spending power of the over 50s. The Mature Times, this month highlights the numbers from this group buying existing businesses but alongside these statistics there is ample evidence that they are just as likely to be involved in start-ups. According to Standard Life, an increasing number of over 50s have ambitions to start their own businesses. Often this is driven by unemployment and the difficulties this poses to older workers. Statistics suggest that those made redundant over the age of 50 stand very little chance of finding a way back into the workforce and so starting a business may be the only way of realising their earning potential.
Others involved in so called ‘silver start-ups’ may have taken early retirement but are not yet ready for a life of leisure. Yet more may simply want a fresh challenge or a new direction in life. Whatever the reason the over 50s are more likely than younger entrepreneurs to have available start-up capital with figures show that only 13% take out loans to launch start-ups. This means they are less dependent on the willingness of banks to provide the investment for the offices, industrial units or other types of commercial property their businesses may require.
The research shows that nearly half of the self-employed population is now aged over 50 and that business start-ups from this age group have the best chance of achieving long term success. Of the small businesses launched by the over 50s, 70% are expected to still be trading after five years which compares well with the average of just 28%. This may have something to do with not having costly start-up loans to service but it may also reflect on greater experience and a deeper knowledge of their markets. This does not mean they are afraid of taking risks, however, and they are just as likely to be involved in high-tech or creative start-ups as their younger counterparts.
The spending power of the over 50s as both consumers and business owners is set to become increasingly important to the economy and the commercial property market over the coming years. Forecasts show that the number of over 50s is set to rise to 25 million by 2021 by which time half of all adults in the UK are expected to belong to this age group. With life expectancy also rising and the elderly staying healthy and active longer, marketing to the over 50s is set to become a growing trend that companies would be unwise to ignore.
