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| Baby boomers - far from a homogeneous group |
| The Times, They Are A' Changin' |
Baby Boomers and their Retirements Create Opportunities for Communicators
America's 77 million baby boomers will begin retiring in droves just a year from now, and few question the impact their retirements will have on virtually every aspect of American life.
The staggering influence of the baby boom generation – people born between 1946 and 1964 – has been felt in the United States and beyond for 60 years. This generation's size and power have influenced American society and the economy since the first boomers were born.
First, they swamped our nation's schools. Then they flooded the employment market. Then they redefined the housing market. Now, they're about to start turning the retirement market upside down.
 | With baby boomers comprising the wealthiest and most economically influential generation in the history of the United States, it's no surprise that their retirement is going to be a big deal. |  |
With baby boomers comprising the wealthiest and most economically influential generation in the history of the United States, it's no surprise that their retirement is going to be a big deal. A very big deal.
Boomers have always captured their fair share of media and marketing attention, but they will garner even more as they retire. As they leave the traditional workforce and plan for their futures – in many cases, another 30 years of living – boomers will be on the minds of nearly every company, organisation and level of government for the foreseeable future.
First, consider their impact on the financial condition of the U.S. government. Today, 48 million people receive monthly Social Security payments. Add another 77 million to the rolls, and it's no wonder policymakers, actuaries and economists are worried about the solvency of the Social Security Trust Fund. Then consider the looming fiscal strains of boomers on Medicare, the nation's other large social insurance programme. Medicare faces an even more financially fragile future.
But government entitlement programmes are only part of the confounding retirement mix. Private sector and public sector employers alike are trying to figure out how to fund pension promises. For boomers lucky enough to have defined benefit plans at work, many have watched their employers eliminate, freeze or convert those plans to ones with less generous payouts. Employers, service providers and trade associations are working to advance retirement security through voluntary employer-sponsored plans.
Baby boomers: not a monolithic group
One of the biggest challenges facing communicators who work for financial services companies, and public relations professionals who work for agencies that represent financial services clients, is this: baby boomers are far from a homogeneous group. If public relations professionals believe for a minute that they can communicate with baby boomers, influence their behaviour and persuade them to make financial decisions by treating them as one big monolithic group, disastrous results are on the horizon.
Consider just a few of the differences, with respect to baby boomers' financial situations and behaviours:
- some boomers have accumulated substantial savings and are prepared to finance their own retirements
- many boomers are heavily in debt and have leveraged their real estate assets to the hilt by continuously refinancing their mortgages and living the good life by using equity lines of credit
- one of the biggest challenges for communicators – some baby boomers depend on financial planners to manage and direct their investments, while others want to do their own financial planning.
Add to this, the complicated nature of many investment and insurance products, coupled with the lack of trust Americans have in some financial products, and there has never been a more urgent time for professional communicators to rise to the occasion and lead organisations in how to communicate effectively.
| Arguably, how financial services companies and organisations communicate with baby boomers will speak volumes about how successful they are in attracting and retaining boomers as customers. | |
Arguably, how financial services companies and organisations communicate with baby boomers will speak volumes about how successful they are in attracting and retaining boomers as customers.
How do communicators tackle this challenge?
For starters, businesses and organisations need to discover what boomers want. Guesswork doesn't count. What's required is well thought-out market research in which a company's boomer audience is properly segmented and intimately understood.
Then, financial services companies need to take a fresh look at the products and services they offer to make sure they're in line with boomers' desires and demands. The most important trend under way is the shift from wealth accumulation to income generation. Boomer assets include not only what they've amassed during their working years, but also inheritances from their parents in what is expected to be the greatest transfer of wealth in the history of America.
Finally, companies need to figure out how to communicate with boomers. Most market research suggests boomers would say, "Meet me where I am. Communicate with me on a personalised, individualised basis."
Clearly, communicating with baby boomers – who are all over the map in terms of their needs and wishes – is no easy task.
A changing communications environment
Add to this the seismic shift that's occurring in communications today. Indeed, communicators have long respected the power of the message. We've always known we must transmit messages that are compelling and personally relevant to the audience.
But traditional, top-down communications is no longer blindly accepted. Today, peer-to-peer communications is often viewed as more trustworthy than communications by companies to consumers, or by institutions of government to citizens. Word of mouth, now propelled by technology, is increasingly viewed as a very real way through which people learn about things, form opinions and make decisions. As a result of the changing environment, it's as important to focus on the messenger as it is on the message.
Technology advancements have resulted in an instantaneous velocity, a personalised approach and a global reach to communications. Plus, there is the rise of constituent advocacy, and the sheer flood of content. The number of "trusted voices" has increased exponentially.
So what's the result?
More noise. Potentially more confusion. Certainly a higher margin of misinformation. A bigger stage for extreme points of view.
But for the strategic, smart, brave and determined there is increased opportunity. To the extent that a communications effort can enlist, equip and harness the power of trusted, informed and credible messengers, the higher the probability is of its success.
Where Weber Shandwick comes in
Weber Shandwick works with companies that are doing significant work in the retirement services and baby boomer space. We know boomers' financial behaviour, how they want to be communicated with, and how they make financial decisions. We have developed and executed successful research-based campaigns to communicate successfully with baby boomers and change their behaviour for companies including: Business Roundtable/Pension Coalition, ING, Aetna Financial Services, CIGNA Retirement & Investment Services, the U.S. Treasury, the Federal Reserve Bank, Nuveen Investments, Allianz and Life and Health Insurance Foundation for Education (LIFE).
In London, we have teamed up with our sister agency, FutureBrand, to create O50: A Fresh Perspective – a specialist offering that combines media and public relations expertise with consumer insights, brand strategy and creative design to help brands reach and influence the over-50 market. The team goes one step farther by identifying specific implications for branding and PR strategies based on nine O50 consumer mindsets.
Clearly, there is no more important component of an effective communications programme than having a crystal clear understanding of the people you are trying to reach. Achieving this level of precision with baby boomers isn't easy. It requires deep sector knowledge and the ability to think boldly, strategically and creatively.
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| Barb Iverson, president, North American financial services, Weber Shandwick
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