Marketers planning their next campaign should turn their attention to the enduring strength of consumers age 50 and older, who have maintained their financial stability throughout the pandemic. While many consumers have reported very negative and extreme impacts on their financial well-being, a relatively small segment of this demographic has reported this degree of hardship.
Since the onset of the pandemic, household finances across all ages have been propped up by relief benefits and unemployment assistance, but consumers 50 and older continue to maintain their relative position of financial strength. Only 7% reported that their income has declined “a lot” since the start of the pandemic and just 1 in 10 are receiving financial assistance from family and friends. (AARP Media Solutions COVID-19 Tracking Study, January 2021).
As these findings confirm, this age group's influence over consumer markets remains important to businesses and to the health of the overall U.S. economy. Here are seven compelling facts about this resilient demographic:
They have strong earnings
Compared to full-time workers age 18 to 49, who earn a median of $55K a year, workers 50 and older earn $65K. Greater earnings and less debt provide an opportunity for investing, which explains why this demographic owns 62% of all investment portfolio value and has an average net worth that is 52% higher than that of adults age 18 to 49. (MRI-Simmons Spring 2020, Fall 2020)