Money, money—who's got the money?

Would it surprise you to find out that women over 70 years of age have more money than any other consumer group? Well, it's true.

Forget hip teens, affluent boomers and even white males, ages 18 through 34, most of the country's wealth is in the hands of women over 70. In an article in The New York Times, Robert F. Sharpe, president of Robert F. Sharpe & Co., a fund-raising consulting group based in Memphis, Tenn., says, "Women over 70 control most of the wealth, directly or indirectly, and it's going to become even more so." He goes on to note, rather indelicately, that "since most of these women's husbands are already dead, women over 70 have collectively inherited and now control vast amounts of money." Sharpe should know; he works with planned giving, endowments and trusts for such venerable institutions as West Point.

Sharpe says, "People who cannot market to or deal with women in their 70s and 80s are going to have a hard time selling all kinds of things." While most retailers are still in denial over the opportunities presented by aging boomers, who are now 40 to 58, marketing to women over 70 must seem as alien as selling to lost native tribes in the far reaches of the Amazon jungle.

But according to data collected by the U.S. Census and the Federal Reserve, the 78 million Americans who were 50 or older controlled 67 percent of the country's wealth in 2001. Within five years, about a third of the total population will be 50 or older. Households headed by a person 55 to 64 year of age have a median net worth of $112,048 and for those 70 to 74, net worth rises to $120,000—more than twice the median net worth of $44,275, for those 18 to 34 years of age.

Speaking at the DDI Forum last fall, David Wolfe, author of the book Ageless Marketing, said that by 2010, spending by people 40 and older will be "a trillion dollars greater than spending by people between the ages of 18 and 34—$2.6 trillion, versus $1.6 trillion."

Not only do older consumers have more money, but contrary to popular opinion, they also love to spend it. A recent study, "How America Shops 2004," by new York-based WSL Strategic Retail, found that the number of consumers aged 55 to 70 who described themselves as "heavy shoppers" (making four or more shopping trips a week) increased from 22 percent in 2002 to 35 percent in 2004. According to the study—and in spite of the perception that older consumers are technology adverse—Internet shopping for this age group increased from 11 percent in 2002 to 25 percent in 2004.

How long can youth-obsessed marketers afford to dismiss older consumers out of hand? What's worse, when older consumers are addressed, the products most often pitched to them are Depends, cleaning powder for false teeth and, of course, Viagra.

A few companies are getting the message, however. Sony has recognized the potential in older customers and has invested around $25 million to advertise its products, including camcorders and digital cameras, specifically to people between the ages of 50 and 64. Virgin Megastores is redesigning its stores to appeal to older shoppers—in fact, recycled "boomer-era music" is now topping the charts. The movie industry has discovered an audience eager for films such as last year's Something's Gotta Give, featuring Diane Keaton in a late-life, romantic romp with a younger man, proudly showing off her still-sexy, 50-plus-year-old body. And Ford Motor Co. has introduced the Ford Five Hundred, a car designed for older drivers. For these companies, efforts may soon begin to pay off.

Here's my advice to marketers and retailers: The 45-plus consumer is the new customer majority. Follow the money—and, please, show a little respect for your elders.



Got an opinion? Contact me at rsway@ddimagazine.com.