Let’s begin with some simple math:

According to the ABS, the resident population of Australia in January 2017 is more than 24.3 million. At least 15% of the population is 65 or older, which accounts for 3.4 million in total.

So senior citizens constitute a significant part of the consumer market. Yet they are so often ignored by companies when it comes to marketing.

While the younger generation is always a top priority, it seems as if the older demographic is treated as if it doesn’t represent a huge chunk of our population.

This chart from a 2013 report by the Reserve Bank of Australia shows that middle aged Australians invariably own more assets than the younger generations, which in many respects is to be expected.

But that’s not all. According to AIWH, 12% of 65+ people are still in the workforce and 76% of them receive a pension (albeit at a varying rate).

Let’s have a look at the pension rate table (from Australian Department of Human Services):

Centrelink data shows that about 59% old people receive a full-rate pension. An approximate amount of total pension money received by the 65+ demographic is more than 54 billion per year. (Assuming half of the older people are living with spouses and 41% people receive at least half of the full pension rate on average.)

In addition to this, people aged 60 to 64 have a superannuation balance worth more than $155k on average.

It is evident that as well as having more assets, 65+ Australians have a great deal of spending power. Marketing for seniors is an often overlooked business strategy that is worth seriously considering.

Why you should consider this demographic

More purchasing power

As mentioned above, 65+ Australians on average have the means to spend significantly more than some other age brackets, particularly younger generations.

Changing interests

People in this demographic today are keen to catch up with the younger generation. In much the same way, they are after cars, clothes and home renovations; have an interest in travelling, eating out and going to movies. They also are concerned about health and fitness.

Not to mention, they are nowadays spending on mobile phones, computers and other technological products.

The demographic is growing

The number of people in the 65+ age group is projected to increase in the near future. By 2020, it will grow to around 16% of the whole population of Australia and the reason for this is largely due to the fact that baby boomers are approaching it.

Further, the life expectancy of older Australians has dramatically increased over the last few decades (almost 80 on average).

This chart below (from ABS) shows how Australia’s older population is increasing at a higher rate than other age groups.