Here’s how brands can lean into the economic power of 50+ Americans — and why they should

Shares audience insights and a new way to look at those aged 50+ in the US, helping marketers develop offerings that resonate with the aspirations of older consumers.

The 50+ demographic – projected to comprise over 50% of the adult population by 2050 – holds a disproportionate share of America’s wealth, at 70%, but remains underserved by brands.

Even though this group is the most valuable demographic ever, most brands continue to overlook this opportunity and only direct 5%–10% of marketing spend towards it.

At least in the US, the more affluent of the 50+ demographic have adopted distinct lifestyles not evident in prior generations.

Why it matters

Those in the 50+ demographic are dominant purchasers of higher-value products such as cars, travel, healthcare, home goods, financial services, fashion and entertainment. Surprisingly, for those who believe that targeting younger audiences will lead older audiences to follow along, in higher-value categories, it can be the other way around. The combination of purchasing power, influence over younger audiences, and a strong sense of what’s important makes the 50+ age cohort incredibly valuable to brands seeking growth.

Takeaways

The prevalence of generational thinking (“Boomers,” “Millennials,” “Gen Z,” etc.) hinders brands from effectively engaging the lucrative and influential 50+ segment, because it reinforces age biases and negative stereotypes. Additionally, marketers’ long-term over-emphasis on the 18–34 age group has created a knowledge gap about the needs, motivations, and spending patterns of older consumers.

The 50+ demographic is more dynamic, diverse and wealthier than stereotypes suggest; according to new research, their nuanced needs and desires fall into six distinct segments that are defined by what matters to them and what they are willing to pay for. 

Because this age demographic has long-term, emotional connections to brands and is willing to pay for intangible equities such as virtues and values, marketers need to think beyond short-term metrics and immediate sales impact when evaluating marketing to the 50+ audience.

The new demographic reality: It’s no longer profitable for businesses to focus on youth

Since the beginning of the baby boom following World War II (1946–1964), America’s population has been boosted by millions of young people born each year and waves of immigrants migrating to America. Many of the world’s most successful brands made their name by winning over these new, young customers with youth-focused marketing campaigns. In 1960, America was a youth-dominated market, with most of the population

(57%) under 35 and only 23% over 50. The sheer scale and influence of the group called “Baby Boomers” allowed the brands that served them to transform and grow in almost every business sector.

Over time, brands got into the habit of targeting young people and assuming older customers would follow. After the “Boomers” came “Generation X,”… “Millennials,”… “Gen Z,” … and now “Gen Alpha,”… with almost every sector looking to target the next youthful wave, so much so that the AARP (American Association of Retired Persons) has estimated that only 5–10% of marketing spending is directed towards those aged 50+, and the majority of media buying and creative strategies feature and focus on the needs of the 18–34 audience.

But, while the 50+ cohort has been gaining economic power, the financial prospects for 18- to 34-year-olds have been declining, causing historic levels of anxiety and despair. In the US, young people leave college with more educational debt than previous generations; high rents and low salary growth make it almost impossible for them to accrue savings; they are becoming financially dependent on their parents; and the cost of borrowing makes it impossible to buy a house. What’s more, this reality, the impact of climate change, and the emergence of artificial intelligence as a threat to their careers are causing a reversal in the notion that the young are happy, carefree, and aspirational. These trends have resulted in a dramatic decline in life satisfaction for younger adults, as evidenced by the US statistics below. 

America’s profile is being inverted: 50+ is becoming the new desirable demographic

Additionally, America’s age profile has been flipped on its head. Compared with the 1960s, when the under-18s made up 38% of Americans, they are now only 11%, and the over-50s (23% of the population in 1960) are now 36%. Population estimates by the United Nations Population Study anticipate that by 2050, more than half of American adults (18+) will be older than 50. The idea of influence has also somewhat flipped – surprisingly, for those who believe that targeting younger audiences will lead older audiences to follow them, for higher value categories, it’s often the other way around, as research from Boston Consulting Group has highlighted.

Importantly to marketers, in the US this dominant 50+ age group is an economic powerhouse, holding over 70%of all wealth. Overall, this demographic is so wealthy that, according to AARP, if 50+ Americans were categorized as a separate economy, their $8.3 trillion spend would be the equivalent of the world’s third-largest economy.

A new, more desirable, influential, and aspirational demographic segment

Yes, America’s 50+ demographic is large and wealthy, totalling over 125 million adults and spanning multiple generations. Looking at them as a single group obscures many nuances and insights. including that the majority of people over 50 are not wealthy, and many are not healthy.

That said, there are still tens of millions of members of this cohort that offer the great potential to transform a brand’s bottom line, Five0 Consulting sought to investigate the needs and motivations of this group – comprised of 31 million households – which have higher incomes and significant assets. We labeled them Focus Five0.

We looked into this group because, too often, media research studies, driven by the demand for data on the 18–34 age group, don’t ask the questions necessary to understand people’s needs, motivations, and priorities in later life stages. Many of these studies do not ask respondents if they have grandchildren, how old they feel, or if they are looking forward to, or resisting, retirement. This leaves a huge information gap.   

The segmentation study that Five0 fielded was based on 1,045 respondents in Q4 2023. The sample was nationally representative of geographic regions, race, and gender but focused on the most affluent households. Inquiries included qualitative and quantitative responses not covered in other questionnaires and focused on areas that could help brands identify how to connect and build relationships with these valuable customers.

Questions such as:

What does this cohort care about?
How do they see their lives evolving?
How do they want to spend their financial and social capital?

The answers to these questions allowed Five0 to identify six distinct segments with meaningfully different attitudes and behaviors that transcend generational definitions.

Here are descriptions of each:

Enthusiastic Explorers (22%) are attracted to new challenges and like exploring new life paths as they age. They find meaning and purpose in discovery. They want to discover new places, try new experiences, and expand their minds with new ideas.

Nurturing Nestbuilders (25%) value relationships above all else. They care deeply about their friends and families and love to create moments to connect with them. Their grandchildren are often the center of their world. They are motivated by recreating the warm and nurturing environment they were raised in or wish they were raised in.

Caring Crusaders (14%) feel it is essential to help others and have a clear sense of purpose. They want to impact their world, find meaning in supporting causes that are more significant than themselves, and advocate for making society better for everyone.

Optimistic Optimizers (14%) keep as fit and healthy as possible and strive to improve continuously. They have learned that the more they put into life, the more they get out of it. Always looking to improve and win, they treat life like a competitive sport.

Balanced Breezers (13%) are excited about retirement because it allows them to enjoy the good things in life. They feel they’ve paid their dues and earned an easy life. Their reward is indulging in good things – as long as it doesn’t require too much effort.

Sensible Strivers (12%) are motivated by overcoming the adversity preventing them from enjoying life on their terms. They know life is filled with ups and downs and are often stressed and worried. Because challenges make them worry about the future, they limit themselves to simple, immediate pleasures.

This segmentation of affluent people in the 50+ cohort demonstrates that it is not a monolithic market segment. It is a tapestry of diverse individuals at pivotal points in their lives. Understanding their evolving aspirations and needs presents an immense opportunity for brands to forge meaningful connections and drive transformative growth. It’s incumbent upon brands to innovate with products, services, and experiences tailored to unlock the transformative power of the 50+ consumer, but in ways that cater to their life stage.

What success in marketing to these segments looks like

While most marketers targeting 50+ audiences conform to negative stereotypes depicting older customers as technologically challenged, in declining health, or struggling financially, several brands have identified surprising and differentiated needs within this age group.

Not surprisingly, one of these is Virgin Voyages, which stands out in the cluttered cruising space. Virgin has a long history of shaking up different sectors, and its cruises are no different. Adult-only ‘voyages’ that emphasize social and environmental impact and the “protection of ocean and marine life” talk directly to the interests of the “Caring Crusaders” segment and their willingness to pay for social and environmental sustainability.

An alternative strategy from the cruise category is Viking Cruises. Its “Be Curious” campaign speaks to excursions without children or casinos on board and focuses on the intellectual stimulation of adults wanting to learn more about a fascinating subject. This campaign speaks to the “Enthusiastic Explorers” segment.

Changing the language of a category and radically repositioning products is helping some brands connect to the aspirations of these distinct segments. We’ve seen this work successfully for brands like Blackrock, whose “Paycheck for Life” product is not all that different from other retirement income solutions but taps into the emotional needs of the “Balanced Breezers’” desire for a worry-free and easy life.    

The next tranche of growth for your company is outside its comfort zone

In an era of limited fresh options, any business leader with significant growth aspirations should focus on the emergence of this affluent and relatively untapped demographic. We understand that many marketers default to doing things as they’ve always been done. However, businesses are missing a huge opportunity to seize growth by ignoring these two sizable shifts: the longevity of the 50+ demographic and, unfortunately, the sharp decline in happiness, and financial confidence, among younger cohorts. As BCG recently established, while population growth generated more than half of all global consumption in the past, three-quarters of global consumption growth will be driven by individuals spending more on products and services in the years ahead. Those consumers who desire to purchase premium products and can afford them are overwhelmingly distributed among the 50+ demographic.