Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Lifestage Marketing and Financial Services - US - September 2010

There are several themes outlined in Lifestage Marketing and Financial Services—US, September 2010. First, the consumer today is faced with an uncertain economy, and these concerns are changing their attitudes toward - and buying behaviors of - financial instruments.

As the different generations—Millennials, Gen X, Baby Boomers and Swing—are at pivotal life points, this report discusses who they are, what they think, their usage of financial products, as well as their concerns and aspirations; even as they are caught up in a financial situation only a few may have seen coming. Special attention is given to Millennials as they move into adulthood, as many in this generation have returned home after college or otherwise cannot get their proper footing as they move into the mainstream of life. Baby Boomers are also important, as both generations may have experienced losses in their portfolios which have given them pause about the best ways to invest, save money and prepare for their eventual retirement.

Two themes that are also captured in this report are the meaning of trust by lifestage., and how well the components that establish trust are attributed to banks, insurance companies and as a benchmark, to other types of companies such as food companies.

In response to the new dynamics, banks have been creating advertising that at times addresses consumer concerns and at other times is pitched to certain generations. New products that have been created include such products as a “Life Coach” to provide a holistic perspective in financial and life planning, as well as games that people can play to make better financial decisions for themselves at different points in their lives.

The report also highlights the New Frugality that is rippling through many households across the country as their focus now is being cautious with money, leading into a more simplified approach to life in these difficult economic times.

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Scope and Themes

      • What you need to know
        • Data sources
          • Consumer survey data
            • Advertising
              • Abbreviations and terms
                • Abbreviations
                  • Companies mentioned in this report
                  • Executive Summary

                    • Overview
                      • The economy is not recovering
                        • Housing market still a wild card
                          • Big banks are doing well but customers are walking away
                            • The internet is key
                              • Social networking gains steam among those 50+
                                • Retirement a big issue for Gen Xers and Boomers
                                  • New products show the right spirit for the times
                                    • Advertising thoughts
                                    • Insights and Opportunities

                                      • Key points
                                        • Retirement is biggest concern to consumers
                                          • Millennials are entering adult life later than usual
                                            • Figure 1: Education level for males and females at ages 18-28, by generation, 2010
                                          • Gen X is among the most troubled at this time
                                            • Baby Boomers appropriately chagrined
                                              • Swing and WWII Generations feel good about their lives
                                              • Inspire Insights

                                                  • Trend: Resilience
                                                    • Implications
                                                      • Trend: 1998 to 2010
                                                        • Implications
                                                          • Trend: Millennials are Different Investors
                                                            • Implications
                                                              • Trend: Life After Credit—Gen X Finance
                                                                • Implications
                                                                • Market Size and Forecast

                                                                  • Key points
                                                                    • There will be more than 6 million Baby Boomers moving into retirement years
                                                                      • Figure 2: U.S. population, by age, 2010-15
                                                                    • People are in more debt today than 10 years ago
                                                                      • Figure 3: Assets and liabilities per household, by age group, 1998 and 2008
                                                                      • Figure 4: Income after taxes, 1998 and 2008
                                                                    • Housing takes biggest bite out of household budget
                                                                      • Figure 5: Household expenditure categories as a percentage of the total, 2008
                                                                    • Prices of housing, healthcare and insurance/pensions have risen rapidly
                                                                      • Figure 6: Comparison of total household expenditures, by category, 1998 and 2008
                                                                    • Homeownership peaks at ages 55 to 74
                                                                      • Figure 7: Home ownership and proportion with mortgage, by age group, 2008
                                                                      • Figure 8: Estimated market value of home owned, by age group, 1998 and 2008
                                                                    • Housing market still not back on track
                                                                      • Figure 9: Median price of home, 1998-2009
                                                                      • Figure 10: Existing home sales, 1998-2009
                                                                    • Gen X have the largest households—about 3.4 persons on average
                                                                      • Figure 11: Number of people and vehicles in household, by age group, 1998 and 2008
                                                                  • Competitive Context

                                                                    • Key points
                                                                      • The Financial Reform Bill has become law
                                                                        • Consumers want the industry better regulated
                                                                          • Figure 12: Impact of recession on trust of financial industry, by age, July 2010
                                                                        • Banks are already finding ways to increase credit card fees
                                                                        • Segment Performance

                                                                          • Key points
                                                                            • If only life and the times in America were simple
                                                                              • Millennial college grads are moving back home
                                                                                • Millennials have different lifestyles
                                                                                    • Figure 13: Residence community type at ages 18-28, by generation group
                                                                                    • Figure 14: Marital status at ages 18-28, by generation group
                                                                                    • Figure 15: Race/ethnicity at ages 18-28, by generation group
                                                                                    • Figure 16: Education level for males at ages 18-28, by generation group
                                                                                    • Figure 17: Education level for females at ages 18-28, by generation group
                                                                                    • Figure 18: Employment at ages 18-28, by generation group
                                                                                  • The book Generations may give us a glimpse into the future
                                                                                    • Attitudes towards finances show a distinct distaste for debt
                                                                                      • Figure 19: Attitudes towards money and financial services, by generation, Spring 2010
                                                                                      • Figure 20: Attitudes and values, by generation, February 2009-March 2010
                                                                                      • Figure 22: Types of investment products owned, by generation, Spring 2010
                                                                                  • Marketing Channels

                                                                                    • Key points
                                                                                      • Millennials and Gen X prefer the internet
                                                                                          • Figure 24: Influence of internet on media consumption, by generation, February 2009-March 2010
                                                                                        • Internet works for learning about finance
                                                                                          • Figure 25: Sources used for learning about investments and finance during past two years, June 2010
                                                                                        • Young males especially interested in finance
                                                                                          • Figure 26: Sources used for learning about investments and finance during past two years, by age, by generation, June 2010
                                                                                        • Millennials want non-traditional advertising, advisors
                                                                                          • Figure 27: Impact of recession on learning more about investments, by age, July 2010
                                                                                        • TV key source for news and entertainment
                                                                                          • Figure 28: Media attitudes and behaviors, by generation, Spring 2010
                                                                                      • Market Drivers

                                                                                        • Key points
                                                                                          • The Great Recession is still taking its toll
                                                                                            • Figure 29: Total non-farm payroll increases and decreases, in thousands, July 2009-July 2010
                                                                                            • Figure 30: U.S. unemployment rate, by month, July 2009-July 2010
                                                                                            • Figure 31: Employment—Population ratio, January 2000-July 2010
                                                                                          • Retirement plans have gone awry
                                                                                            • Figure 32: When workers expect to retire and retirees actual retirement ages, 2000 and 2010
                                                                                            • Figure 33: Worker confidence in having enough money to live comfortably throughout their retirement years, 2000-10
                                                                                            • Figure 34: Retiree confidence in having enough money to live comfortably throughout their retirement years, 2000-10
                                                                                            • Figure 35: Experienced significant declines in my pension/retirement savings due to recent events in the economy and financial markets, among employees, March 2009 and June 2010
                                                                                          • Boomers want to protect assets
                                                                                          • Leading Companies

                                                                                            • Key points
                                                                                              • BofA and Chase among Top 10
                                                                                                  • Figure 36: Revenues of leading financial products companies, 2008 and 2009
                                                                                                  • Figure 37: Profits of leading financial products companies, 2009
                                                                                                • Customers not happy with, don’t trust big banks
                                                                                                  • Figure 38: Customer satisfaction with financial products companies, among current and former customers, December 2009
                                                                                                • Loyalty eroded; customers walking away from large banks
                                                                                                  • Figure 39: JD Power 2010 Retail Banking Satisfaction Study, April 2010
                                                                                                • Millennials less price sensitive, more likely to buy auto insurance direct
                                                                                                  • Figure 40: JD Power 2010 Insurance Shopping Study, June 2010
                                                                                              • Brand Qualities

                                                                                                • Key points
                                                                                                  • Trustworthiness, no fees, soundness important
                                                                                                    • Figure 41: Most important qualities of financial institutions, June 2010
                                                                                                    • Figure 42: Most important qualities of financial institutions, by generation, June 2010
                                                                                                  • What exactly establishes trust?
                                                                                                    • Figure 43: Factors that establish trust in personal relationships, July 2010
                                                                                                    • Figure 44: Factors that establish trust with ideal financial services companies, July 2010
                                                                                                    • Figure 45: Traits that describe actual banks, insurance companies and food companies, July 2010
                                                                                                    • Figure 46: Traits that do not describe actual banks, insurance companies and food companies, July 2010
                                                                                                  • Most are satisfied with their primary banks
                                                                                                    • Figure 47: Level of satisfaction with primary financial services provider, June 2010
                                                                                                    • Figure 48: Likelihood to recommend or say negative thing about primary bank to others, June 2010
                                                                                                • Innovation and Innovators

                                                                                                  • Key points
                                                                                                    • Metlife—Your Keys to the Good Life
                                                                                                      • Clarity Commitment from Bank of America
                                                                                                        • Wells Fargo reduces the interest rates of its student loans
                                                                                                          • MetLife Online Needs Calculator for Life Insurance
                                                                                                            • The Game of Life—New York Life Edition
                                                                                                              • Allstate launches GoodForLife
                                                                                                                • GEICOteendriving.com Portal
                                                                                                                  • Progressive Snapshot Discount program
                                                                                                                  • Advertising and Promotion

                                                                                                                    • Key points
                                                                                                                      • Social networking gains steam
                                                                                                                        • Other innovative uses of the online channel
                                                                                                                          • Direct mail, print and email advertising
                                                                                                                            • Figure 49: Farmers Insurance multiple products email ad, August 2010
                                                                                                                            • Figure 50: Geico Military Auto Insurance direct mail ad, March 2010
                                                                                                                            • Figure 51: Gerber Life Grow-Up® Plan direct mail ad, July 2010
                                                                                                                            • Figure 52: BBVA Direct mail ad, February 2010
                                                                                                                            • Figure 53: GEICO Print ad, June 2010
                                                                                                                            • Figure 54: New York Life Print ad, June 2010
                                                                                                                            • Figure 55: Fidelity Catch Up Plan Direct Mail, July 2010
                                                                                                                            • Figure 56: Legacy Independent Equity Index Annuity Direct Mail, July 2010
                                                                                                                            • Figure 57: The Bank Award for trustworthiness Print Ad, August 2010
                                                                                                                            • Figure 58: Tri-Cities Federal Credit Union Print Ad, August 2010
                                                                                                                          • TV commercials
                                                                                                                            • Figure 59: Allstate’s Mayhem Key and Deer, 2010
                                                                                                                            • Figure 60: Fidelity Green Line on woman’s floor, 2009
                                                                                                                            • Figure 61: Bank of America and clarity commitment summaries, 2010
                                                                                                                            • Figure 62: Travelers Insurance dog with bone, 2009
                                                                                                                            • Figure 63: ING and the Gazillion needed for retirement, 2010
                                                                                                                            • Figure 64: Kaiser Permanente Want to Be An Old Woman, 2008
                                                                                                                        • The Consumer

                                                                                                                          • Key points
                                                                                                                            • Baby Boomers and Millennials are the largest generations
                                                                                                                              • Figure 65: Percentage of adult population, by generation, June 2010
                                                                                                                            • Boomers, Swing Generation defined as hard-working
                                                                                                                                • Figure 66: Adjectives used to describe one’s own generation, by generation, June 2010
                                                                                                                              • Gen X leads Boomers in savings, investments
                                                                                                                                  • Figure 67: Ownership of financial products, by generation, June 2010
                                                                                                                                  • Figure 68: Ownership of financial products, by gender and by generation, June 2010
                                                                                                                                • Millennials have many financial goals for next 2-3 years
                                                                                                                                    • Figure 69: Personal goals for next 2-3 years, June 2010
                                                                                                                                  • Gen X females want to eliminate credit card debt
                                                                                                                                      • Figure 70: Personal goals for next 2-3 years, by generation and gender, June 2010
                                                                                                                                    • Younger groups are more inclined to be optimistic about the future
                                                                                                                                        • Figure 71: Opinions as to whether things will be better or worse financially in the next year, by generation, June 2010
                                                                                                                                      • Retirement funds are biggest concern
                                                                                                                                          • Figure 72: Opinions about personal finances, overall, June 2010
                                                                                                                                        • Gen X and Boomers are especially worried
                                                                                                                                            • Figure 73: Agreement with statements about financial concerns, by generation, June 2010
                                                                                                                                          • Recession closing wallets; can people afford to retire?
                                                                                                                                              • Figure 74: Opinions about the impact of the recession, by age, July 2010
                                                                                                                                            • Two thirds recently experienced some type of hardship
                                                                                                                                                • Figure 75: Personal changes experienced due to the recession, by generation, June 2010
                                                                                                                                                • Figure 76: Personal goals for next 2-3 years, by generation, June 2010
                                                                                                                                              • Most take steps to simplify
                                                                                                                                                  • Figure 77: How simplifying life as result of recession, by generation and age, July 2010
                                                                                                                                              • Cluster Analysis

                                                                                                                                                  • Simplists
                                                                                                                                                    • Demographics
                                                                                                                                                      • Characteristics
                                                                                                                                                        • Opportunity
                                                                                                                                                          • Adapters
                                                                                                                                                            • Demographics
                                                                                                                                                              • Characteristics
                                                                                                                                                                • Opportunity
                                                                                                                                                                  • Investors
                                                                                                                                                                    • Demographics
                                                                                                                                                                      • Characteristics
                                                                                                                                                                        • Opportunity
                                                                                                                                                                          • Cluster characteristics
                                                                                                                                                                            • Figure 78: Lifestage marketing clusters, July 2010
                                                                                                                                                                            • Figure 79: Ownership of financial products, by cluster, June 2010
                                                                                                                                                                            • Figure 80: Personal goals for next 2-3 years, by clusters, June 2010
                                                                                                                                                                            • Figure 81: Most important qualities of financial institutions, by clusters, June 2010
                                                                                                                                                                            • Figure 82: Personal changes experienced due to the recession, by clusters, June 2010
                                                                                                                                                                          • Cluster demographics
                                                                                                                                                                            • Figure 83: Lifestage marketing clusters, by gender, July 2010
                                                                                                                                                                            • Figure 84: Lifestage marketing clusters, by age group, July 2010
                                                                                                                                                                            • Figure 85: Lifestage marketing clusters, by income group, July 2010
                                                                                                                                                                            • Figure 86: Lifestage marketing clusters, by race/ethnicity, July 2010
                                                                                                                                                                            • Figure 87: Lifestage marketing clusters, by generation, July 2010
                                                                                                                                                                          • Cluster methodology
                                                                                                                                                                          • Appendix: Simmons Mosaic Analysis

                                                                                                                                                                              • Key points
                                                                                                                                                                                • Affluent Suburbia heaviest users of financial products
                                                                                                                                                                                  • Figure 89: Types of investment products owned, by Mosaic type, Spring 2010
                                                                                                                                                                                  • Figure 90: Types of loans currently outstanding, by Mosaic type, Spring 2010
                                                                                                                                                                                • Affluent Suburbia and Varying Lifestyles big users of internet
                                                                                                                                                                                  • Figure 91: Media attitudes and behaviors, by Mosaic type, Spring 2010
                                                                                                                                                                              • Appendix: Trade Associations

                                                                                                                                                                                Companies Covered

                                                                                                                                                                                • Allstate Corporation (The)
                                                                                                                                                                                • American Bakers Association (ABA)
                                                                                                                                                                                • Bank of America Corporation
                                                                                                                                                                                • BB&T Corporation
                                                                                                                                                                                • Charles Schwab Corporation
                                                                                                                                                                                • Citibank
                                                                                                                                                                                • Citigroup Inc.
                                                                                                                                                                                • Credit Union National Association
                                                                                                                                                                                • Employee Benefit Research Institute
                                                                                                                                                                                • Facebook, Inc.
                                                                                                                                                                                • Federal Deposit Insurance Corporation
                                                                                                                                                                                • Fidelity National Financial Inc.
                                                                                                                                                                                • Financial Planning Association
                                                                                                                                                                                • Gerber Products Company
                                                                                                                                                                                • Google, Inc.
                                                                                                                                                                                • Hasbro Inc
                                                                                                                                                                                • HSBC USA Inc.
                                                                                                                                                                                • Insurance Information Institute Inc.
                                                                                                                                                                                • J.D. Power and Associates
                                                                                                                                                                                • JPMorgan Chase & Co
                                                                                                                                                                                • Kaiser Permanente
                                                                                                                                                                                • Kantar Media
                                                                                                                                                                                • Liberty Mutual Holding Company Inc.
                                                                                                                                                                                • LIMRA International
                                                                                                                                                                                • Morgan Stanley
                                                                                                                                                                                • Mortgage Bankers Association (MBA)
                                                                                                                                                                                • National Association of Realtors (NAR)
                                                                                                                                                                                • Northwestern Mutual Life Insurance Company (The)
                                                                                                                                                                                • State Farm Insurance Companies
                                                                                                                                                                                • SunTrust Banks Inc.
                                                                                                                                                                                • TD Ameritrade Holding Corporation
                                                                                                                                                                                • The American Bankers Association
                                                                                                                                                                                • Twitter, Inc.
                                                                                                                                                                                • U.S. Bureau of Labor Statistics
                                                                                                                                                                                • USAA
                                                                                                                                                                                • Wells Fargo & Company
                                                                                                                                                                                • YouTube, Inc.

                                                                                                                                                                                Lifestage Marketing and Financial Services - US - September 2010

                                                                                                                                                                                £3,174.67 (Excl.Tax)