Many companies continue to believe that “aging means retraction, when in reality it means expansion.” “In many developed markets, half of adult consumers are over 50 years old,” notes Lisa Edgar, CEO of The Substantial Window Consulting, pointing to the “huge commercial opportunity” this segment of the population represents – with greater purchasing power, more time, and more aspirations.
Challenging preconceptions and refocusing the debate on the need to rethink how brands communicate with the over-60 generation is the goal of Idade Maior, which will feature Lisa Edgar as a speaker at the major conference on February 24, focused on “intergenerationality in the Workplace” and “Marketing and Communication aimed at 50+.” The event, a partnership between SAPO and Idade Maior, will cover topics such as longevity, active aging, intergenerationality, and the challenges and opportunities arising from an aging population. It can be followed live here, with keynotes, thematic panels, exclusive data presentations, and a live podcast recording of “Para Maiores de Idade.”
In an interview with SAPO, the economist specializing in longevity explains the power and potential of the 50+ generation.
In your function at The Big Window, you argue that brands ignore the segment of people over 50 “at their own risk.” Why do companies continue to see aging as a “decline” rather than a market opportunity, when this group holds the majority of global purchasing power?
Because many organizations still design their products around outdated lifestyle models. They assume that aging means retraction, when in reality it means expansion – of purchasing power, time, and aspirations. In many developed markets, half of adult consumers are over 50 years old. This isn’t decline; it’s a huge commercial opportunity.
The new life model has many more dynamic phases. Even when people retire, they don’t trade their office chair for an armchair. Instead, they enter another multifaceted life with multiple phases. They do the things they’ve been waiting to have time for; they may return to work, but in a way that truly utilizes who they are and what motivates them, and they want to connect with their groups and with brands that truly understand them.
In fact, we don’t diminish with age, we become more expansive and heterogeneous. This means that companies need to be more sophisticated and relevant to the different ways diverse groups want to live the third phase of their lives.
We continue to run campaigns for young people and overlook consumers over 50 (or worse, treat them as elderly). The truth is, they are a very intriguing target audience: they have money, time, and availability, as you said. As a consumption specialist, what practical changes do you consider a priority in the design of products and services, as well as in advertising and marketing, to craft them truly inclusive for this segment of the population?
The answer has three parts. First, define the scope and scale of your market appropriately. There are several life stages after 50 – not a single “senior” group, and brands need to understand how this presents itself. Companies simply can’t effectively segment the needs of older consumers if they don’t understand how they group, what the different groups are like, the size of those groups, and how to prioritize them. We are identifying between 8 to 10 different segments for people over 50, different for each market. Companies that succeed in the new era of longevity will invest in understanding how these segments present themselves.
There are several life stages after 50 – not a single “senior” group, and brands need to understand how this presents itself. We are identifying eight to ten different and distinct segments for each market. Companies that succeed in the new era of longevity will invest in understanding this.
Second, companies need to design for the broader need of the 3Cs: confidence, connection, and contribution. They can do this by focusing on what will provide consumers a sense of control and confidence. For example, the financial services sector needs to assist consumers plan for life in the third age; when they succeed in doing so, they increase control, optimism, and life satisfaction. We’ve proven this at The Big Window. Then, they need to understand that as we age, we seek real and meaningful connections with groups we want to belong to. We don’t want to see a generic version of ourselves in marketing – marketers need to be more sophisticated in personalization for older consumers. And they need to turn to social media because that interaction is part of the lives of older consumers – stop assuming it isn’t!
And third?
Third, shift the narrative from decline to capability. Representation, language, and user experience should reflect autonomy, relevance, and quality.
There is also a view of work, because often these people are available and able to work and have very useful experience. How can companies restructure themselves to attract this senior talent that often seeks not traditional retirement, but rather flexibility and new collaboration models?
They need to move from fixed retirement models to flexible contribution models. Multifaceted careers, mentorship roles, project-based work, and hybrid retirement structures allow organizations to retain experience while renewing their talent pools.
But structure is only part of the answer to a longer working life. In our work with Canada Life, UK (part of Great-West LifeCo), we showed four fundamental pillars of solid long-life employment strategies: Structuring work; Motivating employees; Shaping teams; and Rewarding meaningfully. We showed that it wasn’t just about job sharing, flexible hours, and part-time availability; it’s about recognizing what we want as people, as employees, as we age and shaping job offers, roles, goals, training, teams, and environments to those changing needs.
As people age, they are more motivated by purpose and values at work, they want more autonomy and independence. Employers need to consider this carefully if they want to retain their best talent in their best years.
For example, we found that as people age, they are more motivated by purpose and values at work, they want more autonomy and independence. Employers need to consider this carefully if they want to retain their best talent in their best years. Ensuring they are recognized, have clear purposes and goals, and space to achieve them. People change as they age and we need to reflect that in everything we do.
Lisa often speaks of the urgency of generational balance. How can organizations avoid “conflict” between generations and turn the coexistence between young digital natives (to whom we must open the way to rejuvenate languages) and more experienced workers (who have experience and can offer a perspective on how to reach those over 50) into a real competitive advantage?
Through the intentional creation of intergenerational teams. Younger employees bring digital fluency and agility; older employees bring discernment, pattern recognition, and deep consumer knowledge. Well-structured, this combination becomes a competitive advantage and drives more sustainable innovation in the long run.
While younger employees may be more productive when everything goes as planned, older employees tend to be more productive when things move wrong – they are quicker to draw on their knowledge and experience to adapt. This, of course, debunks another myth about age and productivity. And let’s be honest: when do things really go as planned?
Younger employees bring digital fluency and agility; older employees bring discernment, pattern recognition, and deep consumer knowledge. Well-structured, this combination becomes a competitive advantage and drives innovation.
And do public policies have a role to play in encouraging companies to keep older workers active, without blocking the entry of young people into the labor market?
Governments should incentivize gradual retirement, vocational training, and flexible work – and not force a binary choice between working and retiring. Evidence consistently shows that longer working lives expand economies rather than exclude younger workers.
we urge governments to work with providers to reshape, for example, financial products, so that they adapt to “new longer lives.”
The format of life is changing to become more fluid and dynamic; people are reskilling and returning to work, but in different ways, much later in life. The cliff of retirement will become obsolete. But, financial products are still very shaped around learning, working, retiring – all with rigid limits. We want providers to offer products that can be much more responsive to life’s products.
Active aging will indicate choice. Some will work part-time, some will start businesses, some will travel, mentor, or volunteer. Many will do all of these things at the same time.
If we live in societies where 70 is the new 50, the very concept of retirement will be obsolete. What is your vision of what “active aging” will look like in a decade?
Active aging will mean choice. Some will work part-time, some will start businesses, some will travel, mentor, or volunteer. Many will do all of these things at the same time.
I will do all of these things at the same time. I love what I do. I don’t want to stop until I see, for example, a new retirement model with products, services, and customer journeys that match. I perceive like a dog with a bone! But at the same time, I want to enjoy time with my family – travel through Europe in my van and play padel and tennis, a lot. I want companies to recognize my multifaceted retirement and accompany me on this journey.
It’s a big change from the past.
The main change we are experiencing is psychological: aging will be seen less as an end and more as a phase of life reshaping. This is the true dividend of longevity. This will create need and, where there is need, there is value for the consumer and for the market.
