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Financial institutions often focus their innovation and marketing efforts on capturing younger demographics, but our latest pan-generational research reveals a significant opportunity that is often overlooked: Baby Boomers. With large quantities of accumulated wealth and unique financial needs, this generation (born between 1946 and 1964) presents both challenge and opportunity for financial service providers willing to look beyond stereotypes.
The paradox of boomer financial sentiment
Our research reveals an interesting contradiction in how Baby Boomers view their financial situation:
- Only 31% of Boomers report feeling dissatisfied with their current financial situation
- Yet 56% of Boomers are pessimistic about their future financial stability (compared to 55% of Gen Z and Millennials, and 61% of Gen X)
- 70% of Boomers report that the cost-of-living crisis has impacted their spending habits
This disconnect between present and future suggests a generation that, while more financially secure than their younger counterparts, is still concerned about how well they can maintain stability in the longer-term.
A foundation of financial stability
The relative confidence in their current finances isn’t unfounded. Our data shows that Boomers generally have more financial stability:
- Only 33% of Boomers lack savings to cover three months of outgoings (compared to 48% of Gen Z)
- Only 29% of Boomers have little to no emergency savings (compared to 41% of Gen Z and 44% of Millennials)
- 36% of Boomers hold five or more financial products/accounts (the highest percentage among the generations studied)
And yet, despite this, many boomers feel that banks and financial institutions no longer care about them. As one UK Boomer male participant in our study noted: “My bank’s not interested in me. It used to be sending me direct mail for this, emails for that. Now they just don’t want to know – but with [grandson], they throw everything at him.“
The resistance to financial guidance
However, this lack of interest cuts both ways. While 58% of Boomers express openness to increasing their financial literacy, they also show the most resistance to external financial advice:
- 21% of Boomers believe their financial provider doesn’t understand them very well (versus only 8% of Gen Z and 10% of Millennials)
- 36% of Boomers wouldn’t welcome financial advice from any industry or sector
- 42% of Boomers don’t want information from their bank at all
When asked why they resist financial advice, many Boomers responded with some variation of: “Anything I needed to know isn’t relevant at this point.“
The reasons behind resistance
Our research identifies three primary reasons for this resistance:
1. Life stage limitations
Many Boomers believe they’ve reached a stage where financial changes would yield minimal impact. Living on fixed incomes from pensions and investments, they see limited opportunities to significantly alter their financial trajectory.
2. Experience-based confidence
After decades of managing money, many Boomers believe their life experience has taught them the bulk of what they need to know about personal finance. Our data shows that 93% of Boomers consider life experiences to be responsible for “some” or “a lot” of their knowledge about finances. Many also believe that they now know enough, with only 58% of Boomers being interested in increasing their financial literacy, versus 92% of Gen Z.
3. Feeling misunderstood and overlooked
Perhaps most significantly, Boomers often feel ignored by financial institutions. As one research participant put it: “They used to be interested in me. Now they don’t want to know.“
The longevity challenge
This resistance to financial guidance creates a potential blind spot that could impact Boomers significantly:
- Many Boomers could live 20+ years beyond their expected retirement age
- Healthcare costs typically increase in later years
- The costs of long-term care can rapidly deplete savings
- Legacy planning becomes increasingly complex
The financial services opportunity
For financial institutions, this reality presents not just a challenge but a substantial opportunity. Our research reveals specific areas where financial services could better serve Boomers:
1. Focus on longevity planning
Boomers need financial strategies that address potentially living decades longer than previous generations. This includes not just retirement income planning, but also healthcare funding strategies and long-term care considerations.
2. Legacy and Estate Guidance
With 26% of Gen X and 26% of Gen Z counting on inheritance for financial stability, Boomers need effective wealth transfer strategies that maximise their legacy while meeting their own needs.
3. Transparent and respectful communication
66% of Boomers visit bank branches and value having a physical location. Personal relationships and clear, direct communication matter significantly to this generation.
4. Multi-generational advisory services
Rather than isolating Boomers in their financial planning, institutions that facilitate family financial discussions across generations can provide unique value while building relationships with younger family members.
What boomers really want
Our research shows that Boomers have specific preferences when it comes to financial services:
- Transparent and easily understood language (ranked #1)
- Discounts, cashback, or other rewards (ranked #2)
- Personalised expert advice (ranked #3)
- Physical branches to visit in-person (ranked #4)
- Step-by-step guides on using services (ranked #5)
By delivering on these priorities, financial institutions have a great opportunity to build lasting relationships with Baby Boomers.
Communication preferences matter
While digital-first strategies dominate financial services marketing, Boomers maintain different preferences:
- 52% of Boomers prefer offline communication channels
- 33% of Boomers prefer email as their primary financial advice channel
- 27% of Boomers value one-on-one consultations
- 15% of Boomers still value direct mail
The frequency of communication also matters, with Boomers preferring less frequent but more meaningful interactions:
- 43% of Boomers prefer monthly communications
- 28% of Boomers prefer communication on-demand only
Beyond the stereotypes
Perhaps most importantly, our research challenges common stereotypes about Boomers’ financial behaviours:
- 66% of Boomers consider having a physical bank branch important (similar to 65% of Gen Z)
- 49% of Boomers rarely use cash (compared to 51% of Gen Z)
- 76% of Boomers believe saving for the future is important, even if it means sacrificing now
These findings reveal a generation that, while cautious, is not immobile in their financial behaviours. They adjust and adapt, but they do so on their own terms and at their own pace.
The overlooked opportunity
Financial services providers face a choice: continue focusing primarily on younger generations while treating Boomers as a declining demographic, or recognise the substantial opportunity this generation represents.
Boomers control significant wealth, seek meaningful financial guidance (when properly approached), and influence the financial behaviours of younger generations. Financial institutions that develop services specifically addressing Boomers’ needs for longevity planning, legacy guidance, and multi-generational wealth strategies can capture market share in this underserved segment.
For a generation often feeling overlooked by financial institutions, providers that demonstrate understanding and respect for their unique needs will stand out in a crowded marketplace.
STRAT7 delivers comprehensive generational research and market intelligence to help financial institutions develop products, services, and communication strategies that resonate with evolving consumer needs. Contact us to learn how our insights can transform your approach to serving Baby Boomers and beyond.
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