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Baby Boomers and Financial Services - UK - August 2015

Published By :

Mintel

Published Date : Aug 2015

Category :

Banking

No. of Pages : N/A

While younger generations seem to generally be more trusting towards the financial services industry, Baby Boomers are more sceptical. Their views are tainted by witnessing some of the most notorious financial scandals of the last few decades, including the rise and fall of endowment mortgages and the mis-selling of pensions and payment protection insurance (PPI). Many feel let down by the industry, while others feel that banks do not pay enough attention to the needs of their generation. This cynicism makes it challenging for financial providers to reach out to this generation, particularly for new and less familiar products, as well as new technology such as mobile banking.

Introduction

Executive Summary

The market
Baby Boomers account for nearly a quarter of UK population
Figure 1: UK population, by generation, mid-year 2015 (projection based on 2012)
More than two in five Baby Boomers are still in work
Figure 2: Current working situation, by generation, June 2015
Nearly half of all Baby Boomers are homeowners
Figure 3: Current housing situation, by generation, June 2015
Financial health is greater among Older Baby Boomers
Figure 4: Current financial situation, by generation, June 2015
Nearly two fifths of the Younger Baby Boomers still live with their children
Figure 5: Current living situation, by generation, June 2015
Baby Boomers are slowly becoming more tech-savvy
Figure 6: Technology product ownership, by generation, June 2015
The consumer
Making ends meet is the top financial priority for Baby Boomers
Figure 7: Baby Boomers’ financial priorities, June 2015
High financial product ownership among Baby Boomers
Figure 8: Financial product ownership among all Baby Boomers, June 2015
More than a third of Baby Boomers own six or more types of financial products
Figure 9: Number of types of financial products owned by Baby Boomers, June 2015
14% of Baby Boomers have £100,000 or more in savings/investments
Figure 10: Value of savings and investments held by Baby Boomers, June 2015
Less than a third of Baby Boomers have unsecured debt
Figure 11: Value of unsecured debt among Baby Boomers, June 2015
Online information sources are most popular overall among Baby Boomers
Figure 12: Baby Boomers’ information sources for financial products, June 2015
Online beats all other channels for Baby Boomers’ daily banking…
Figure 13: Baby Boomers’ channel preferences for their financial activities, June 2015
…but personal contact is important when applying for a bank account or resolving problems
Over two fifths of Baby Boomers are confident that their finances are in good shape…
Figure 14: Baby Boomers’ attitudes towards their finances, June 2015
…while nearly a third worry about money a lot of the time…
…and so continue to take a conservative stance when it comes to debt
Two in five Baby Boomers worry about their retirement
Figure 15: Baby Boomers’ financial concerns about their retirement, June 2015
Do previous generations always have it better?
Majority feel that technology has improved financial services
Figure 16: Baby Boomers’ views and attitudes towards the financial services industry, June 2015
Mis-selling scandals have harmed the industry’s reputation
Issues and Insights

Retirement: a major concern for Baby Boomers
The facts
The implications
Baby Boomers are becoming more tech-savvy, but branches remain vital
The facts
The implications
The Market – What You Need to Know

Baby Boomers account for nearly a quarter of UK population
More than two in five Baby Boomers are still in work
Nearly half of all Baby Boomers are homeowners
Financial health is greater among Older Baby Boomers
Nearly two fifths of the Younger Baby Boomers still live with their children
Rise of ‘Silver Singletons’
Baby Boomers are slowly becoming more tech-savvy
Who Are the Baby Boomers?

Baby Boomers account for nearly a quarter of the UK population
Figure 17: UK population, by generation, mid-year 2015 (projection based on 2012)
More than two in five Baby Boomers are still in work
Figure 18: Current working situation, by generation, June 2015
Nearly half of all Baby Boomers are homeowners
Figure 19: Current housing situation, by generation, June 2015
Financial health is greater among Older Baby Boomers…
Figure 20: Current financial situation, by generation, June 2015
…and particularly among homeowners
Figure 21: Current financial situation among Baby Boomers, by housing situation, June 2015
Nearly two fifths of the Younger Baby Boomers still live with their children
Figure 22: Current living situation, by generation, June 2015
Rise of ‘Silver Singletons’
Figure 23: Marital status, by generation, June 2015
Baby Boomers are slowly becoming more tech-savvy
Figure 24: Technology product ownership, by generation, June 2015
The Consumer – What You Need To Know

Making ends meet is a top financial priority for Baby Boomers
Saving is a key financial priority for the majority
High financial product ownership among Baby Boomers
More than one in five own investments
More than a third of Baby Boomers own six or more types of financial products
14% of Baby Boomers have £100,000 or more in savings/investments…
…while a fifth have no savings or investments at all
Less than a third of Baby Boomers have unsecured debt
Online information sources are most popular overall among Baby Boomers…
…while professional financial advice is also highly valued
A stark contrast to younger generations
Online beats all other channels for daily banking…
…but personal contact is important when applying for a bank account or resolving problems
Over two fifths of Baby Boomers are confident that their finances are in good shape
Two in five Baby Boomers worry about their retirement
Do previous generations always have it better?
Baby Boomers have a negative outlook for the younger generations
Majority feel that technology has improved financial services…
…but security is a major concern
Mis-selling scandals have harmed the industry’s reputation
Financial Priorities

Making ends meet is a top financial priority for Baby Boomers
Figure 25: Baby Boomers’ financial priorities, June 2015
Building emergency savings is a key financial priority for the majority…
…but so is saving specifically towards retirement
Figure 26: Baby Boomers’ financial priorities, June 2015
Others prioritise holidays and spending more on themselves
Financial Product Ownership

High financial product ownership among Baby Boomers
Figure 27: Financial product ownership among all Baby Boomers, June 2015
More than one in five own investments…
Figure 28: Saving and investment product ownership among Baby Boomers, by product ownership, June 2015
…while others own property
More than a third of Baby Boomers own six or more types of financial products
Figure 29: Number of types of financial products owned by Baby Boomers, June 2015
Value of Savings and Investments

14% of Baby Boomers have £100,000 or more in savings/investments…
Figure 30: Value of savings and investments held by Baby Boomers, June 2015
…while a fifth have no savings or investments at all
Value of savings and investments increases with age…
Figure 31: Value of savings and investments, by generation, June 2015
…as well as income and home ownership
Figure 32: Value of savings and investments, by housing situation, June 2015
Higher-value savers attracted to investment products
Figure 33: Financial product ownership among Baby Boomers, by value of savings, June 2015
Value of Unsecured Debt

Less than a third of Baby Boomers have unsecured debt…
Figure 34: Value of unsecured debt among Baby Boomers, June 2015
…whereas younger generations are more used to having unsecured debt
Figure 35: Value of unsecured debt, by generation, June 2015
Baby Boomers tend to limit themselves to one credit type…
Figure 36: Number of types of credit product ownership, by age, May 2015
…which tends to be credit cards
Figure 37: Credit product ownership, by value of unsecured debt, June 2015
Information Sources for Financial Products

Online information sources are most popular overall among Baby Boomers…
Figure 38: Baby Boomers’ information sources for financial products, June 2015
…while professional financial advice is also highly valued
A stark contrast to younger generations
Figure 39: Information sources for financial products, by generation, June 2015
Channel Preferences in Financial Services

Online beats all other channels for daily banking…
Figure 40: Baby Boomers’ channel preferences for their financial activities, June 2015
…but personal contact is important when applying for a bank account or resolving problems
Branches are still highly valued among Baby Boomers
Online dominates in the insurance market
Mobile banking has greater potential among Younger Baby Boomers...
Figure 41: Channel preferences for their financial activities, by generation, June 2015
…but security concerns remain…
…as do functionality concerns
Baby Boomers and their Finances

Over two fifths of Baby Boomers are confident that their finances are in good shape…
Figure 42: Baby Boomers’ attitudes towards their finances, June 2015
…while nearly a third worry about money a lot of the time…
Figure 43: Baby Boomers’ attitudes towards their finances, by financial product ownership, June 2015
…and so continue to take a conservative stance when it comes to debt
Baby Boomers’ Concerns about Retirement

Two in five Baby Boomers worry about their retirement
Figure 44: Baby Boomers’ financial concerns about their retirement, June 2015
An ageing, earning population
Do previous generations always have it better?
Baby Boomers have a negative outlook for the younger generations
Baby Boomers’ Attitudes towards Financial Services

Majority feel that technology has improved financial services…
Figure 45: Baby Boomers’ views and attitudes towards the financial services industry, June 2015
…but security is a major concern
Baby Boomers’ opinions of financial providers vary
Mis-selling scandals have harmed the industry’s reputation
Figure 46: Baby Boomers’ views and attitudes towards the financial services industry, by current financial situation, June 2015

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