PensionsJul 4 2017

Silver spenders feel ignored by finance

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Silver spenders feel ignored by finance

Over 50s feel ignored by brands in favour of younger consumers, according to the latest research by SunLife - despite wielding almost £120bn of annual spending power.

Part of SunLife’s Welcome to Life After 50 campaign, the Big 50 report – which interviewed 50,000 over 50s – found 59 per cent of people aged 50+ say brands aren’t interested in them.

When asked which brands they feel ignore them the most, more than a third said the fashion industry was the worst culprit, a quarter said it is the technology sector and  one in six said health and beauty.

But it is not just stereotypically ‘young’ industries that are ignoring older customers; one in ten over 50s say they feel ignored by the financial sector the most.

This is despite the fact over 50s spend 50 per cent more on pensions, savings and investments than under 50s  (£150 a month compared to £100 a month for under 50s) and are 8 per cent more likely to have insurance.

Over 50s also spend a considerably higher percentage of their overall income (19 per cent) on financial products than people aged under 50 do (14 per cent).

Dean Lamble, CEO at SunLife said: “Over 50s currently make up a third of the UK population -  by 2020, half of us will be over 503 - while spending among the over 50s is growing at three times the rate of the under 50s, yet brands are still obsessed with targeting younger age groups.

“Our research also reveals that most people in their 50s feel richer now than at any other age and are more than willing to spend their cash now than when they were younger,” he said.

The majority (62 per cent) say money is there to be spent, and more than half (56 per cent) say their cash is for them to have fun with now, and they are not prepared to give it to anyone else.

Mr Lamble concluded: “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." 

But IFAs believe the over 50s are mostly well looked over by their community.

Justin King, chartered financial planner of Mfp Wealth Management in Christchurch, said: "All my clients are over 50 but I think there is a classic problem that there are a huge number of people who need advice but who can't afford it or don't want to pay for it.  

"It is like going to the gym - many people could benefit from it but few are prepared to pay for it."