People over 50 spend more on financial services, but firms target them less

By Moriah Costa on 5th July 2017

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The older generation feels it is being ignored by financial brands in favour of younger consumers, a report found.

People over 50 spend more on financial services, but firms target them less

Despite over 50-year-olds spending more on financial products, companies often target younger generations, a recent study from SunLife found.  

The insurance company found that 59 per cent of people 50 or older think that brands are not interested in them. One in ten said they think financial institutions ignore them the most.

However, the survey of over 50,000 people over the age of 50, found that older generations spend nearly 50 per cent more on pensions, savings and investments. On average, those over 50 spend £150 a month compared to those under the age of 50, who spend £100 a month on financial products.

“Over 50s currently make up a third of the UK population - by 2020, half of us will be over 50 - while spending amongst the over 50s is growing at three times the rate of the under 50s, yet brands are still obsessed with targeting younger age groups,” said Dean Lamble, CEO of SunLife.

Older consumers feel ignored by other industries as well. More than a third said the fashion industry ignore them the most, a quarter said it is the technology industry and  one in six said health and beauty.

Lamble said companies are missing out on a key consumer group. Their survey found that people over 50 feel they are at their richest and are willing to spend more money than younger generations. Around 62 per cent of those surveyed said that money is meant to be spent, with 56 per cent saying cash was for them to have fun and they were not planning to give it to anyone else.

“There is such a huge opportunity here for brands, but many are reluctant to make their products appealing to people over 50, or don’t know how to,” he said. 

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