1 -1  Demographics  Generations  Challenging stereotypes  How the Boomers are changing retirement  The client across the desk In this chapter

1 -2  Provide insights into what is important to clients and customers  Learn about viewpoints, reactions, motivations, lifestyles, hopes, and fears  Help us understand how best to communicate and market Why Demographics?

1 -3  G.I. Generation (1901–1926)  Silent Generation (1927–1945)  Baby Boomer (1946–1964)  Gen X, 13th Generation (1965–1976)  Gen Y, Echo Boomer, Millennials, Nexters (1977–1994)  Gen Z, Internet Generation, New Silent (1995– ) Living Generations

1 -4  Those in their 90s or 100s  One million by centenarians by 2030?  Challenge societal, care, housing institutions Nonagenarians and Centenarians

1 -5 Generational profiles inform how :  Services are provided  Marketing communications are developed  Buyers and sellers are counseled  Matures/Elders: G.I. & Silent Generations  Seniors: 55+, Matures plus Baby Boomer Defining the Market

1 -6  “Service isn’t what it used to be”  Afraid of out-living their assets  Formality is important, courtesy and face- to-face interaction  Relationship marketing is key, value personal referrals  Be aware of physical limitations, do not patronize Matures

1 -7  Value convenience and customization, hates rules  Generally not needs-driven  Expect a timely response  Want and expect expert services and advice  Age targeted, not age restricted, “senior” is a tough sell  Do not see themselves as old Boomers

1 -8  Want you to provide access and get the paperwork done  Pragmatic, risk-takers, results oriented, skeptical, high tech/low touch  Expect response time  Already know the good deals, do not try to “sell” them anything Gen X

1 -9  Pragmatic, but empathic with elders  Prefer directness over subtlety, action over observation  Multi-tasking  Heavily influenced by media and peers  Technology is a way of life  Influenced by the look of your Web site Gen Y

1 -10  What are the ages of the oldest and youngest persons in your family and office?  Where do you fit in your family’s ranges of ages and generations?  How do the generational differences impact communications in your family and office? Exercise: Generations

1 -11  Median age of REALTORS  is 52  Median age of brokers is age 53  Median age of sales agents is age 49 How Do REALTORS ® Compare?

1 -12  Old (65+)  Older (75+)  Oldest (85+)? Old, Older, Oldest

1 -13 Reality:  We become more biologically diverse as we deal with a combination of chronic health conditions  By age 70+, almost all seniors are dealing with one or more of seven chronic conditions  We “age” at different rates Myth: Old people are the same

1 -14 Reality:  A last resort for most  Less than 5% of the elder population live in nursing homes  Most families provide in-home care  1st choice–services that allow elders to stay in their own homes  Significant number of grandparents are caregivers for grandchildren Myth: Families “dump” relatives into nursing homes

1 -15 Reality:  More than half of respondents at all age levels rated their health as good to excellent  By age 70, almost all seniors are dealing with one or more of 7 chronic health conditions  Are Baby Boomers in worse shape than previous generations? Myth: Old equals ill and disabled

1 -16 Reality:  Close friends and relationships same as younger people  Friends, family and community are a motivation to age in place  Preference not to live with children  Transportation is important for social involvement and independence Myth: Lonely and withdrawn

1 -17 Reality:  Active users of the Internet  Boomers will continue the trend  Use Internet for , search properties, research neighborhoods Myth: Afraid of technology

1 -18 Reality:  Percentage of older people living in poverty has steadily declined over the years  Many are cash poor and house rich Myth: Living in poverty or wealth

1 -19 Reality:  Statistically less likely  However, personal safety and fear of crime important factors in choosing a location Myth: Likely to be crime victims

1 -20  Largest, wealthiest, most educated consumer generation in U.S. history  Markets and services will adapt How Baby Boomers are Changing Retirement

1 -21  Challenging concept of when retirement begins  Ideal is working part time or back and forth between work and leisure  Why? Mental stimulation, challenge, continued earnings When to Retire?

1 -22  Median income of $64,700 compared with national median of $46,300  26% income of $100,000 +  Highest incomes in large city suburbs  Median net worth: $616,000 for incomes $100,000 + $184,000 for incomes $50,000 - $99,000 Boomer Wealth

1 -23  Extended period as a sandwich generation  Delayed marriage and family, parents living longer  Teenagers and adult children living at home  Two-thirds financially support children over 18 Sandwich Generation

1 -24  78% own a primary residence  Home is 40% of net worth  $100,000 median home equity  Significant number own second homes and plan to convert to primary  More indebted and entering retirement with higher debt loads than parents Homeownership and Debt

1 -25  Low cost of living  Near family  Access to quality health care  Better climate  Near a lake, river, ocean Factors in Selecting a Location

1 -26  37% are on their own  Single, divorce, separation, widowhood  Trends may emerge in group living arrangements and mutual help groups Single Boomers

1 -27  Boomers do not see themselves as old or aging  Forever young at heart  Aging not part of their self-image  Don’t see “senior” applying to them  “Do you see yourself living in this house five or ten years in the future?” Old, who me?

1 -28  No “one size fits all” answer  Not every aging issue is an issue for every senior client  Chronological age does not equal life stage, lifestyle, or activity level  Think health stage or activity stage The Client Across the Desk

1 -29 F = Family/Friends O = Occupation R = Recreation/hobbies D = Dreams F.O.R.D.

1 -30  As circumstances change, mature adults will: buy and sell upsize and downsize move to a new location move back or “half-back” to be close to family move to assisted living environments and more  Clients for life  Become the real estate professional who can help them through the phases The Opportunity

1 -31 Everyone hopes to be a senior one day and be treated then as you would want to be treated now. Golden Rule