Over-55s are the new big spenders

Glenys and Nelson Crisp are among the new breed of retirees. Picture / Mark Mitchell

When Nelson Crisp sold his pharmacy business 18 months ago and retired, he didn't slow down.

"I don't think I'm old. I run around like a mad thing," says the 66-year-old, who fills his days with a mix of golf, community work, socialising and enjoying his five grandchildren.

After being "frugal" during their working lives, he and wife Glenys now have the time and the inclination to splurge a little. They live in a central Wellington apartment, travel regularly and dabble in the sharemarket.

The Crisps are part of a growing army of young-at-heart retirees who intend enjoying life.

Strangely, however, advertisers seem reluctant to encourage them to open their wallets.

"I don't see a lot of TV ads for us, although there's a big market there," says Crisp.

"I'm naughty; when the ads come on I flick channels. Except for cars, trips and specials, I couldn't care much about TV ads at all. I get really annoyed because the decibel level goes up."

Lauren Edwards, director of Evergreen Marketing Communications, a consultancy specialising in researching older demographics, says globally there is a "we'll get around to it" attitude towards marketing to the affluent baby-boomer market.

"There are more people talking about the mature market and the potential it has and why we should be marketing to them," Edwards says.

"That's great but we're still seeing little action from marketing departments and advertisers."

Anna Chitty, media director of advertising agency FCB, says the baby-boomers (the oldest of whom are just turning 60) have an attitude that it's okay to spend their kids' inheritance.

"What that means from an advertiser's point of view is that you've got a hot target in that older generation," she says.

"And not just in goods and services that are for older people. Mindsets have changed; 60 is the new 45."

Edwards' advice to advertisers is to make their ads inclusive and appealing to all age groups. Some companies have got it, including AMP, which is running a TV commercial featuring images across 10 stages of life, from two to 80.

Another corporate mining its predominantly mature and wealthy client base is finance company Hanover Group, which has launched a magazine - Plenty - to "communicate lifestyle and investment information" to its 40,000 customers.

"There's a perception out there that all media are overly youth-focused," says editor Lindsey Dawson.

"Older people who are active, well-travelled and sophisticated and with plenty of disposable income are a really powerful group who feel largely ignored. This is fertile ground for editorial and advertising."

Chitty says Plenty is a clever move by Hanover. It has invested in a respected editor with Dawson and produces a quality read rather than a "glamorised brochure".

While promoting Hanover, the first issue also has a range of external advertisements for everything from convertibles to consumer technology.

Edwards says another company cashing in by catering to the older market is The Radio Network which last year launched Coast, an easy-listening station targeted at the over-55s. It has shown strong listener growth despite limited promotion.

Darryn Melrose, managing director of interactive marketing agency Aim Proximity, Wellington, says the internet is a powerful channel for reaching the over-55s.

He says as a group, they are big users of technology, have more time to surf and have the spending money.

Telecom generally does not aim advertising at specific age demographics, although an upcoming TV-based campaign explaining how to text should appeal to older phone users.

Telecom Mobile marketing chief Kevin Bowler said: "Increasingly, if they want to talk to their grandchildren, this is the way the grandchildren choose to communicate.

"My parents are in their seventies and, because they can never get hold of me, they now text telling me to ring them."

Edwards says baby boomers' increasing comfort level with the internet and technology is mirrored by a willingness to try new products and brands.

"This is the generation that changed society - they burned the bras, they talked about racism and sexism and now the next ism they're facing is ageism," she says.

"If there's no one out there catering for them, if there's no one selling to them, they won't sit back and wait.

"They'll go out and find the information. They'll use the internet and they'll use other means to find out about products and services and make their decisions that way."

Plenty of cash

Average weekly income by age group:

All 15+: $586
55-59: $727
60-64: $621
65+: $389

Estimated total discretionary income by age group:

18-35: $3.5 billion
(Expected to drop 4% by 2007)

40+: $6 billion
(Expected to be $8 billion by 2007)

Source: Statistics NZ, Evergreen Marketing Communications