Lina Ko May 26th, 2008
According to last weekend’s National Post, debt management by young couples during the first half of working life is more important than worrying about saving for retirement. Actuary experts argue that it’s about taking on debt responsibly and get rid of debt as soon as you can.
Many young Canadians graduate from university with heavy debts from student loans and credit cards. They subsequently marry and enter the housing market only to find sky-high house prices in many Canadian cities. Unlike the U.S., mortgage debt is not tax-deductible in Canada. Although the mortgage industry has tried to ease the cash-flow crunch by introducing 40-year amortization schedules, this idea only makes sense for those starting out with modest incomes but who expect hefty raises within a few years. For others, making minimum payments for 40 years is just financial slavery.
Contrary to popular belief, baby boomers are not always the big spenders they’ve been made out to be. They are quite frugal and have managed their money pretty well. The vast majority will be able to retire at a reasonable age with a good income and enjoy retirement very much. The early years of retirement are typically more expensive because of splurging on travel and hobbies. But most people do not have years of blow-out spending early in retirement. They are reasonably frugal and have a good time, but you don’t need to travel the world every year to enjoy a good retirement. Low-cost pastimes like reading, walking, bridge or watching movies and TV are also quite enjoyable.
Lina Ko May 20th, 2008
According to The Toronto Star, ageing boomers are looking for a change in lifestyle when they become empty nesters. Some real estate consultants think that there are a lot of people in the 50-plus segment of the market who are quite keen to no longer live in traditionally proportioned space. Instead, they are looking for more modernist space – conversions of older buildings and loft-style spaces. A lot of boomers are also going for contemporary open space. What appeals to boomers are light, air, big windows, high ceilings, fewer but larger rooms, and a big social kitchen that’s the gathering spot. The dining room is now history.
What we are dealing with are individualistic boomers. These are people who do not want something that is run of the mill. They are looking for something that’s unusual and special, and they can personalize their own taste. Another trend for boomers is to have a country property. The secondary home in the country is more and more becoming the principal residence compared to the city dwelling due to a reversal of priorities and psychology. Even real estate agents have to change their way of selling to boomers!
Lina Ko May 12th, 2008
According to a recent survey conducted by Ipsos Reid on behalf of the Canadian Newspaper Association, Canada’s wealthiest demographic – baby boomers – still plans to spend big money in the coming months in spite of the slowing economy.
Eighty percent of the 1,980 boomers surveyed said they still had “big buying power.” And many indicated they fully intended to exercise that power with large purchases. Almost 40 percent of boomers said that taking a vacation topped their spending priorities for the next 12 months. Purchasing home electronics, appliances and a car – as well as mutual funds – also ranked high as priorities.
The Toronto Star also reported that the survey revealed that in a world where 74 percent of advertising money is directed at a younger audience, 40 percent of boomers feel neglected by ads. The survey also shows newspapers are the medium of choice for boomers, with 65 percent indicating they don’t see a time when their paper will be replaced by something else.
Advertisers and marketers are still ignoring an important demographic although I have to say there have been some improvements. In these times when we know the economy is shrinking, perhaps marketers should speed up in paying attention to the boomer demographic who still has money and is willing to spend.
Lina Ko May 5th, 2008
According to a recent article in The Hamilton Spectator, a lot of leading-edge baby boomers picture a retirement that will include some type of volunteer activity. And with large numbers of boomers about to leave the workforce in some way or another, the not-for-profit and charitable sector is ready to welcome the new volunteers with open arms.
However, there seems to be a gap between expectation and reality. A recent poll by Decima Research indicated that while many of the boomers expect to volunteer in their retirement, fewer people actually follow through on their plans. At the top of the list of reasons is time constraint. With a host of obligations, including being sandwiched between children and ageing parents, it is harder for boomers to commit large portions of their time.
Also, a lot of boomers are looking for challenges that they are not finding in their volunteering activities. They are not content with licking envelopes after leaving a high-powered job that gave them a strong sense of identity and accomplishment. Unlike previous generations of volunteers, boomers want more from their volunteering experience. They want flexibility to fit their volunteer activities into all of the other demands on their time. And they want meaningful work that will engage them and make use of their workplace skills.
Bridging the volunteer gap should be a key priority for not-for-profit organizations to take advantage of this opportunity!