CFDTM CONSUMER FINANCIAL DECISIONS

Transcription

1 : The Future of Wealth CFDTM CONSUMER FINANCIAL DECISIONS IMPLICATIONS FOR FINANCIAL SERVICES The sheer numbers of the Boomer population (born between 1946 and 1964) have been a major driving force in defining the winners and losers in today s consumer markets. Like the proverbial pig in the python, have demanded attention through every stage of their development. Both because of their size and because of their place in history, are responsible for many of the changes that have occurred during the past four decades in our society. Now that are middle-aged, their life stages virtually span the gamut, from household formation through preretirement. Consequently, the breadth and depth of financial needs cover every financial product and service and all the more so for who represent the most lucrative part of the pig for financial services. Figure 1 GROWTH OF THE WEALTHY 12 Percent of Households Generation X WWII Working WWII Retired Source: 2002 by SRI Consulting Business Intelligence. All rights reserved.

2 As Figure 1 shows, may not constitute the largest group of wealthy households in the past decade that category is clearly composed of older households. are, however, the fastest-growing group of wealthy households. And in spite of the market s gyrations, it is not unreasonable to expect that the numbers will double in the next ten years and quite possibly triple. Figure 2 LIFE STAGES OF THE WEALTHY Percent of Households Retired Working Near All Single No Child Married No Child Child Less than 12 Child 12 to 17 Child 18 and Over Preretired Younger Retired Older Retired Source: Unlike previous cohorts, which tend to concentrate in only a couple of life stages at a time, (including ) currently are in every life stage except those associated with retirement. In the next ten years, will move out of the household-formation life stages, and a majority will move past the child-rearing life stages, and they will permanently move into the preretirement and retirement life stages. Just as they did to every life stage they passed through before, are redefining preretirement. will not go gently into that good night. They will demand the same focus and attention that they demanded through every other life stage. Compared to previous generations, they will have significantly more disposable income with which to back up these demands. If even just a small proportion of the medical research on life-threatening illnesses currently under study turns out to be viable, life expectancies are likely to increase adding more years to many lives. Given 2002 by SRI Consulting Business Intelligence. All rights reserved. 2

3 the triple demographic factors of more money, longer life, and more people, are quite likely to be around for a long time to come and therefore to transform the whole concept of retirement. The will be the first to enter into this soon-to-be redefined life stage. ( households are more likely to retire; those with fewer assets will tend to work longer.) Because financial services are the tools with which we build our lives, financial-services providers will need to provide new financial products and services that will enable to live this redefined post-child-rearing-but-not-yetassisted-living retirement life style. Retirement for some may center on travel or the arts; for others, on philanthropy and volunteer work. Whatever vocation, occupation, or endeavor they choose to pursue, the will be unlike any previous wealthy generations. They will expect assistance from their financial-services providers that will take on different forms and will use a multitude of channels. Because of the ways in which they have lived their lives and because some aspect of the way in which they approach life will remain the same, we can predict much about these with a high degree of certainty. will not be satisfied simply to accept the status quo and meekly follow the path set by their predecessors. They will demand the attention they believe they deserve, not because they have inherited the mantle of wealth and responsibility, but because they believe they have earned it. And as certain as death and taxes, are the Future of Wealth. Who are the? How do they differ from other, older wealthy cohorts, either working or retired? What impact do these differences have for financial-services providers that want to serve this unique, lucrative market? : The Future of Wealth analyzes current and future and their use of financial products and services. Specifically, this program focuses on with $1 million or more in financial assets (the current ), with $500,000 to $1 million in financial assets (the Near- ), and older millionaires in two groups, depending on whether they are still working or already retired. We will present the findings from this research privately to subscribers in their offices (or the venue of their choice). During the 90-minute presentation, subscribers will have an overview of the and the critical differences in serving their needs, now and in the future. At the presentation, subscribers will be able to engage the researcher interactively to assist them in interpreting the findings for their institution s products, services, delivery channels, and goals. Additional proprietary work sessions are also available. The 100-plus page analysis with graphics explores the implications for the future of financial services as it focuses on the importance of how are different from previous wealthy generations. The analysis is based on the following factors: 2002 by SRI Consulting Business Intelligence. All rights reserved. 3

4 How demographics differ from those of other wealthy cohorts Amounts in debts, assets, net worth, and balance sheets Assets especially in retirement products Credit and debt equity, nonsecured debit, and credit cards Transaction vehicles: checking, savings, and relationship products Access including cards, PCs, ATMs Life, health, and property/casualty insurance Financial education, information, advice, and the use of financial professionals Financial goals and attitudes. DELIVERABLES A 90-minute presentation of findings in your offices covering the results, implications, and questions and answers (expenses are extra). A 100-plus page analytic report Tabulation section of the analytic volume that includes complete demographics, product and service incidences, delivery channel use and preference, balance-sheet items, recent and likely financial behaviors, and financial attitudes toward institutions, investing, retirement, and financial planning and advice for the following segments: All Older Working Older Retired Near- All Others. To order, please fill out and fax in the subscription form at the end of this proposal. For more information about this or other Consumer Financial Decisions programs, please visit our Web site at or contact: Larry Cohen Director, CFD Telephone: Fax: [email protected] Kathryn Spring Client Services, CFD Telephone Fax: [email protected] 2002 by SRI Consulting Business Intelligence. All rights reserved. 4

5 Subscription Form CFDTM CONSUMER FINANCIAL DECISIONS We agree to become a subscriber to SRI Consulting Business Intelligence s (SRIC-BI s) : The Future of Wealth. We understand that the products and services in this program are for the sole and confidential use of program sponsors and may not be disclosed to others without SRIC-BI s prior approval. Deliverables for the program consist of one report volume of analysis with tabulations and a presentation of findings. Please select the following options by initialing: : The Future of Wealth $ Includes presentation, report with tabulations Optional Deliverables: Additional set of report (each) $500 Extra presentation (expenses extra) $3,000 Proprietary half-day work session (expenses extra) $5,000 Total fee US$ For non-u.s. sponsors, the quoted fee does not include GST or any equivalent tax, which will be added at time of invoice. Signature Date Name Title Company Address City State ZIP Telephone Fax Please fax completed form to: SRI Consulting Business Intelligence P.O. Box 2516 Menlo Park, CA Fax: by SRI Consulting Business Intelligence. All rights reserved.