SNAPSHOT: BOOMERS AND HEALTHCARE TRENDS

Compiled by FH Boom.

At the turn of the last century, the average adult lived to be 44 years of age. Boomers can expect to live thirty or more years on average. This creates new challenges and opportunities for the healthcare industry.

Boomers Spend Money on Healthcare

• There are 78 million boomers in the US, born between 1946-1964, spending well over $525 billion on healthcare.
• Average annual expenditures on health care in 2005 for individuals 45-54 was $2,672 and for those 55-64 was $2,410 (Source: Bureau of Labor Statistic—Consumer Expenditure Survey, 2005)
• Boomers...Purchase 57% of health-care insurance ($75 billion)...Represent 58% of all health-care spending ($152 billion)...Purchase 67% of all prescription drugs ($37 billion)...Account for 61% of all over-the-counter drug purchases....(Source CMO: The Resource for Marketing Executives “When Gray Equals Green,” January 2005)
• 50-plus consumers are responsible for purchasing 60% of all healthcare, 74 percent of all prescription drugs and 51% percent of all over-the-counter drugs (Source: Immersion Active)

These Numbers are Going to Grow Rapidly

• The amount that the 50+ segment spends on health care is expected to increase to $1.1 trillion by the end of 2007.
• A 2002 report from Business Communications Company predicted that by 2006 the total market for drugs and cosmetics aimed at aging baby boomers will grow to $41.9 billion. (Source: Boomers and Beyond, Inc.)
• Homecare nursing (for boomers who want to age in place) will grow 56% between now and 2014

For Many Boomers, Looking/Feeling Younger is a Healthcare Issue

• In 2005, boomers spent $30 billion on anti-aging products. 50-plus consumers are responsible for purchasing 60% of all healthcare, 74 percent of all prescription drugs and 51% percent of all over-the-counter drugs (Source: Immersion Active)
• Purchase 41% of all personal care products and services ($24 billion)...(Source CMO: The Resource for Marketing Executives “When Gray Equals Green,” January 2005)
• The country's huge swath of baby boomers -- the 77 million Americans born from 1946 through 1964 -- are a sweet spot for the industry. Over the past three years, U.S. sales of antiaging products jumped 42% to reach almost $2 billion, according to NPD Group. (Source: Wall Street Journal—December 19, 2007)
• Sales of anti-aging products jumped 13% in 2003, more than double the growth rate for the previous two years. (Source: The NPD Group, 2004)
• According to a 2002 survey by the Alliance for Aging Research, 89% of Baby Boomers have done something to fight getting older, including 31% who have colored their hair. Eighty-six percent have made dietary changes in the previous year, while 57% have taken vitamins, minerals and dietary supplements to look or feel younger. (Source: Selling To Seniors, 2002)

Boomers are Concerned about Healthcare Costs

• Among top financial concerns for boomers: Having enough money to cover healthcare related costs -- 50 percent (Source: Scottrade’s 2007 American Retirement Study)

Unprecedented Longevity will Require High Maintenance for Boomers

• By 2020, Boomers will account for four in 10 office visits to physicians. (Source: American Hospital Association—May 8, 2007)
• Chronic diseases are on the rise: diabetes, osteoporosis, heart and all obesity-related illnesses
• Boomers often go to either end of the extreme dealing with illness: denial or hyper vigilance.
• For instance, half of all boomers are experiencing hearing loss, but only a small percentage use the hearing aids they are prescribed.

Many (not all) are Pushing the Envelope Physically—and Creating New Issues

• National health club memberships among people 55 and older has jumped 16 percent, from 6.9 million in 2002 to 8 million in 2005, according to the association. (Source: The Annapolis Capital—March 28, 2007)
• Led by baby boomers, loosely defined as the 78 million Americans born from 1946 to 1964, sports injuries have become the No. 2 reason for visits to a doctor's office nationwide, behind the common cold, according to a 2003 survey by National Ambulatory Medical Care. (Source: The New York Times—April 16, 2007)
• Boomers accounted for nearly one-third of all Americans participating in cycling, basketball, running and other sports in 1998, according to the most recent study by the U.S. Consumer Product Safety Commission. During that one year, the age group sustained more than 1 million sports injuries, leading to nearly $19 billion in medical costs. (Source: The Baltimore Sun—November 5, 2006)
• 54 percent of survey respondents said they plan to exercise regularly during their retirement years and 51 percent expected to be healthier than most people their age in retirement. (Source: The Southern—June 9, 2007--AARP)

Boomers Also Take Care of their Elderly Parents’ Healthcare Needs

• Four in 10 baby boomers with a living parent currently provide them with personal or financial assistance. Among those who expect to be called on to provide assistance in the future, 72% are concerned about their ability to handle it. Most boomers think the options for quality elder care are good, but cost is a broader worry. (USA Today, ABC News and Gallup Organization)
• Boomers (skewed towards women) influence 78% of purchasing decisions of their elderly parents. They spend $100 billion annually on healthcare-related purchases for their parents.
• Boomers are also their parent’s caregivers – in a recent study, Intel estimates that within the decade, two out of three boomers will be caretaking; General Motors puts it at 21% currently.
• Boomers are developing their own brand loyalties for the future based on observation of how particular companies are treating their parents today. In fact, in Intel’s study, the key finding was that boomers are looking for technology that “will help me manage my chronic illnesses as well as that of my aging parents.”