Hidden in plain sight

In comparison to the very ‘fashionable’ discussion about Millennials and the waves of cultural change they will affect, it is important that we don’t ignore the influence of the older Australian and the change this will mean for Australian society.

There are many statements and supporting statistics that can be used to illustrate the scale of change the ageing population presents to Australia. The combined effect points to one very clear message: a society focussed on the needs and wants of people in their 20s, portrays a disproportionate focus.

The economic assumption of a homogenous group of seniors needs to be thrown out the window. Our expectation of retirement is changing; since the 2011 Census, nearly 40% of those working that would have expected to retire by now have not. There can be assumptions as to why this would be, but the lesson here should surely be that assumptions about older Australians can be flawed.

Silver SpendersThe over 60’s are one of the most significant populations in Australia but are often ignored by marketers.

Today nearly 1 in 3 people are aged over 60. There is no doubt that previously held notions of senior people and their capability (or lack of) will need to change.

28% 33%

33%4%

2%

5 consumer lifestyle trends you need to know in 2018 and beyond

Successful communication with the Australian consumer requires an accurate understanding of their behaviour. Long-held insights and assumptions need to be reassessed to effectively communicate with your consumers. Experian has identified 5 important trends in the Australian residential landscape that shouldn’t be ignored.

POPULATION & WORKFORCE CHANGES

2011 - 2016

HOUSING GROWTH SINCE 2011 (NUMBER OF DWELLINGS)

Source ABS Census 2016

Source Experian Mosaic

Source ABS Census 2016

YOUNG PROFESSIONALS

YOUNG FAMILIES

GAP YEAR

INTERNATIONAL STUDENTS

LIVING AT FAMILY HOME (INC. STUDENTS)

Look out for our upcoming individual deep-dives into each trend.

For more information please contact: info@au.experian.com

Silver SpendersThe quiet, financially restricted retirement years are changing as we work longer and accumulate increased wealth during our working lives.This segment spend big on clothing, footwear, travel and homewares.

1

Source Experian Mosaic 2018, Experian ConsumerView 2018

Lavish EstatesThe previously unappealing developments in outer suburban locations are becoming attractive destinations for new home owners looking for luxury at an affordable price.

4

The Big DivideEstablished home owners are using a ‘divide and conquer’ approach to property ownership to take advantage of their significant existing capital investments in property. First home buyers are taking advantage and are changing the neighbourhood demographics.

3

POPULATION GROWTH

2011 - 2016

AGE BREAKDOWN OF NEW ESTATE RESIDENTS

Source ABS Census 2016

Regional ReachRelocation and consolidation of consumers from geographically sparse country areas to ‘super’ regional towns near Australia’s major cities provide the employment security and desired lifestyles that many are looking for whom are financially attractive and accessible.

5

INCREASE IN POPULATION

65+

+22%

DIFFERENT FACES OF MILLENNIALS

+36%INCREASE

IN PEOPLE STILL WORKING 65+

Millennial MoodsMillennials are a varied, complex population and real insights are needed for successful engagement with this target market.

2

+11.3%

+13.8%

CAPITAL CITIES

LOCALITIES

RURAL

MAJOR URBAN

NATIONAL +8.8%

-0.4%

+4.5%

49%OF PEOPLE CONTINUED WORKING UPON REACHING RETIREMENT AGE 65+

43%

28%MILLENNIALS

GEN X

MIDDLE AGED

21%

50-64

35-49

-35

65+ RETIREES

8%

+5%HOUSES

TOWNHOUSES

+40%

+5%APARTMENTS

NATIONAL

+9%

Source: Census 2011 versus Census 2016

Silver Spenders

Not all the same

Experian has identified nine unique and significant segments of older Australians:

Central Prosperity: Wealthy affluent metropolitan seniors still working but approaching retirement

Coastal Comfort: Relaxed retired independence in scenic coastal areas

Scenic Connection: Living a comfortable retirement or nearing the end of their middle class working careers in satellite towns

Journeyed Equity: Since immigrating they have established a comfortable level of family wealth and are enjoying their retirement in the metropolitan suburbs they moved into when first arriving in Australia

Retirement Village: Elderly residents reliant on the care and support provided by retirement communities

Staying Put: Long term residents of outer metropolitan areas that are comfortable and committed to their local communities.

Blue-Collar Retirees: Long term residents of outer metropolitan fringe suburbs.

Lonesome Elders: One of the eldest segments of our population, these solo long term residents of regional towns carefully manage their limited incomes

Rural Retirement: Australia’s oldest segment living out their retirement in the country and rural towns they grew up in and never left

Long held assumptions regarding the homogeneity of older Australia will be proven to be increasingly inaccurate. The older Australian populations vary from coastal ‘sea-change’ retirees to the inner city active working older Australians.

There are areas of major metropolitan cities that are heavily populated by those over 60.

Working for longer

Turns out that living longer probably means we will likely have to work longer. This change to the demography of Australia will require governments, employers and society to re-examine the expectations on work and ageing. The ageing workforce could represent a significant opportunity for employers to reimagine the nature of work, and reconfigure traditional roles to better suit the needs of older employees.

Analysis by Experian reveals two significant factors about the older Australian that businesses need to consider:

Legend Central Prosperity

Scenic Connection

Journeyed Equity

Other Older Australians

Melbourne Sydney

Silver Spenders

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Central Prosperity

These young at heart seniors are living the affluent metropolitan lifestyle in their older years. Successful working careers allow these seniors the financial freedom to enjoy all that their desirable inner city lives have to offer. They can now afford to enjoy what they have achieved and are taking full advantage of it. Physically and mentally capable of continuing to work, this population are keen to continue to enjoy their working lives and the social interaction it provides. An example of some of the categories this group have a higher than average spend on include; Wine, domestic airfares, holiday accommodation within Australia and donations to charity.

As these seniors approach the sunset of their working careers, they are comfortable in their suburban lifestyle and enjoy the familiarity and comfort these neighbourhoods supply. Relatively high affluence decreases any financial incentive to work, but successful careers and considerable experience mean they are ideally placed to continue to offer value to their employers beyond traditional retirement age. Some categories this group have a higher than average spend on include; Music concerts, International holidays, cooking appliances and jewelry.

Scenic Connection

A diverse population of relatively affluent seniors are willing and able to continue working beyond traditional expectations of retirement. Retirement already provides a challenge for this population as they enjoy and value their work, they are receptive to extending their working careers as long as they are physically and mentally able. This group have a higher than average spend on categories such as; Whitegoods, home renovations, restaurants and cinema and theater attendance.

Journeyed Equity

As consumers continue to demand a more personalised experience they expect businesses to have an accurate understanding of their needs and wants. Using segmentation to create targeted and tailored messaging that appeals to the diverse older populations across Australia, should be an important component to more successful communications. This level of insight can often be overlooked, but remains an essential tool in the modern marketer’s toolbox and is as indispensable as ever in the development of an effective campaign.

Experian analysis illustrates the diverse older Australian population and the segments that are likely to be working past traditional retirement age;