Baby Boomers Revealed

An AARP Services-Focalyst study has exposed a number of myths about the US Baby Boomer market.

“Contrary to many common assumptions, Boomers are making retirement obsolete, are very savvy about advertising and are experimenting with new products,” said Howard Byck, VP corporate development at AARP Services.

Few US Boomers are planning on completely retiring. Only 11% of Boomer respondents say they will stop working entirely when they reach the retirement age of 62.

When it comes to advertising, many Boomers are not always happy with what they see. Two-thirds of Boomers surveyed said that ads have become more crude in recent years and 67% said they are less likely to purchase a product if they find the advertising offensive.

Brand loyalty among Boomers is also overrated. More than 60% of Boomers agreed with the statement, “In today’s marketplace, it doesn’t pay to be loyal to one brand.”

And lastly, it appears that Boomers are not as technologically challenged as once thought. According to the study, 82% use the Internet and they engage in activities such as instant messaging, downloading music or movies, financial transactions and online gaming.  

Health Plans Boom for Early Retirees 

DALLAS MORNING NEWS

Special to the BBM 

Making it to Medicare has become one of the biggest challenges for baby boomers who retire or are laid off before 65.

Individual health insurance can be expensive. More than half of the pre-65 boomers on such policies spend at least $300 in monthly premiums for single coverage, according to the Commonwealth Fund, a Washington policy institute.

And those with a chronic medical condition may be denied coverage related to that condition or turned down altogether.

But hope may be on the horizon. Lured by the baby boomer generation’s size and affluence, a number of insurers have begun to market policies specifically geared to ages 50 to 64.

Consumer advocates are cautious about the new individual plans, wondering whether they will do any good for older adults who have not been able to buy affordable coverage because of preexisting conditions.

Prices will remain high, the advocates predict, and many chronic conditions will still be excluded.

But other industry observers predict the emerging competition will make health insurance more affordable and therefore obtainable for at least some of the seven million Americans in that age group who are without coverage.

Help cannot come too soon for Lon Orenstein of Dallas, who is 58 and runs a computer-software-design business. His yearlong search for a “reasonably priced” policy has forced him to change his expectations of health insurance.

“I started by looking for a comprehensive plan similar to what I had when I worked for someone else,” he said. “Now, after suffering sticker shock, I’m just trying to find something to cover me in case I ever cross paths with a truck.”

Early retirees without employer-subsidized coverage can expect to spend an average of 40 percent of their preretirement income on medical expenses, the Commonwealth Fund said.

“For the pre-Medicare crowd, one serious illness or injury could wipe out their savings and drive them into bankruptcy,” said Sara Collins, a health insurance expert with the group.

It was not always so.

Early retirees once could depend on employer-subsidized health plans until Medicare began at 65, but companies hit by new accounting rules and escalating medical costs have scaled back retiree health coverage.

Only 35 percent of big employers offer retiree health benefits, down from 66 percent 20 years ago, according to the Kaiser Family Foundation.

Drawing the most attention among insurers has been Aetna Inc., which recently signed an agreement with AARP’s business unit to offer a range of plans for members.

The Premier plans, for example, have been designed to provide coverage resembling employer-subsidized plans, though the insured individuals must bear the full cost and go through an underwriting process. The cost depends on the beneficiary’s age, address, sex, medical history and coverage. A 52-year-old Dallas man in reasonable health will pay $295 a month for a plan with a $2,500 deductible.

Though Aetna will continue to review an applicant’s medical history to determine eligibility, John Wider, vice president of health products and services for AARP Services Inc., predicted the company will be “more accepting” of certain medical conditions.

Jan Foster of Duncanville, Texas, is an AARP member who is 60 and has struggled to find affordable insurance since becoming an independent contractor in 2000.

Foster reads the sales brochures that come in the mail from AARP Services and said she would be interested in one of the Aetna plans if the cost fits her budget.

“For eight years, my only insurance has been the flu shot I get at the drugstore,” she said. “I don’t know how much longer that’s going to work.”

Another provider, Humana Inc., said it was promoting its Portrait plans to the pre-Medicare market because they come with unlimited doctor’s visits, a feature the insurer believes will appeal to boomers accustomed to group plans.

Co-payments are $35 for visits to primary-care doctors and $50 for visits to specialists, said Steve DeRaleau, chief operating officer of HumanaOne, Humana’s individual policy business.

Early retirees who are healthy and have a financial cushion should consider a high-deductible plan that has a lower monthly premium but still guards against a serious illness or accident, said Mike Smith, executive vice president of Brokerage Inc., an insurance marketer in Lewisville, Texas.

This year, more than 4 million baby boomers will turn 50 - that’s more than 12,000 a day. They are the single largest generation in history, with more discretionary income than any other age group. And, unlike the generations before them, baby boomers are living longer and working longer, launching a brand new life stage: Preretirement.

Born at the end of World War II, boomers mourned President John F. Kennedy’s assassination, cheered for Martin Luther King, Jr.’s “I Have A Dream” speech and marveled as Neil Armstrong walked on the moon. They redefined civil rights and women’s rights. They were marked by the Vietnam War and embraced rock ‘n’ roll.

“Baby Boomers have done everything bigger than the generations who preceded them,” said Andrew P. Garvin, chief executive officer of PreRetirementLife.com, a new Web site designed specifically for adults ages 50 to 64. The site is live in Beta and can be previewed by going tohttp://www.preretirementlife.com and entering the password “preview.” Mr. Garvin is seeking as much feedback as possible before launching full-scale this spring.

“Now, boomers will be the generation setting the tone of a new life stage. They are no longer just baby boomers. They are Preretirees,” said Garvin.

Preretirement is a life stage between the ages of 50 and 64 that marks the transition between your career and your future, said Garvin. Research shows that today’s preretirees will not retire in the traditional sense. They are active, health-conscious and inquisitive, embracing technological innovation and the new experiences that come with life’s success.

By 2010, 58.4 million people will fall into the Preretiree group, making up 20 percent of the population. As they embark on this dynamic and challenging life stage, they will seek practical solutions to help make Preretirement more rewarding.

PreRetirementLife.com is the premier online guide for adults ages 50 to 64, providing valuable resources and information about innovative products that meet the needs of people in this newly defined stage of life.

“Our site embraces the vitality of this new lifestyle and provides trustworthy advice, all in one convenient place,” said Garvin. “PreRetirementLife.com allows visitors to connect with fellow Preretirees to share tips and insight on finances, health and other important issues. We also scour the Internet to find, present and describe the most useful Web sites for Boomers. We help them find what they need faster.”

PreRetirementLife.com features user-friendly navigation and unique content without intrusive banner and pop-up advertisements. Visitors can find exclusive deals and discounts; learn the latest secrets to staying young; read articles by experts in 14 topic areas, including health, financial planning, travel, 50-plus housing and self-improvement; ask questions on any topic and receive personalized answers from other registered users or from PreRetirementLife.com’s expert staff; and explore the PreRetiree Product Expo, the only year-round exhibit on the Web to showcase products and services from companies meeting the needs of Preretirees.

About PreRetirementLife.com:

PreRetirementLife.com, the Web’s premier online guide for adults ages 50 to 64, is being developed with input from distinguished experts in business, media, marketing and from members of the baby boomer generation. To learn more about this exciting new life stage, preview exclusive monthly deals and discounts and access weekly secrets to staying young, visit http://www.preretirementlife.com and enter the password “preview.”