Boomers are taking control of their finances – unless banks demonstrate how their products help, they will become a casualty of newly engaged boomers looking for change.

For most boomers, the recession has not had a major impact on their retirement hopes – because their retirement hopes were always modest. The recession and stock market losses may have forced a few baby boomers, particularly moderately wealthy boomers, to adjust their image of retirement. However, almost three-quarters of baby boomers have less than $100,000 in investable assets. For these “mass market” boomers, the stereotypical pre-recession image of retirement was always far outside of their financial means. Mass market boomers have modest retirement expectations: they will reduce their living expenses, continue to work part-time, and travel very little. Read More »

Today’s post isn’t really Operations related.  In fact it’s not necessarily Financial Services related though it is related to finance…sort of.  It’s really about spending and consumer behavior.  My colleague, Elisa, alerted me to a recent article from Gallup, written by Dennis Jacobe.  The article talks about the “New Normal” when it comes to spending behaviors.

The article is a really interesting read – it’s well written and I enjoyed it a lot.  Also, it pairs nicely with the section on customer preferences in last month’s teleconference, Succeeding as a Head of Operations in 2010.

In the teleconference we mentioned that we’re seeing different generations impacted differently by the economic crisis.  For instance at this point in time of the crisis, Millennials, those born between 1982 and 2001 and are entering college or the workforce for the first time, are considered economically formative – they’re forming their spending habits.  Think about the impact that the last year or two has had on this group of young individuals as they’ve formed their spending habits and how the recovery will impact that.  It’s most likely to be different than baby boomers who long ago shaped their spending habits and have encountered multiple recessions.  Read More »