Growing market

Press, 24 July 1987, Page 22

Growing market

Market research by the Department of Statistics shows that the retirement market of those 60 years and over is increasing 13 per cent a year, and is one of the most rapidly expanding markets in -New Zealand. It is stated to be a $3 billion market with more than S2SM in Superannuation income each week. In the over 60 years market, about 15 per cent are still employed either part or full-time. Although, for the majority, their income is reduced from what they previously enjoyed, so have their financial commitments. Children and mortgages are no longer a drain on their resources. A Heylen research lifestyle segmentation study showed that 78.4 per cent of this market had house insurance, as distinct from household effects insurance, which indicates that about 80 per cent own their own home. Only 10 per cent, however, have a mortgage and this suggests that about 70 per cent own their homes freehold.

Travel of all types is popular with this age group, particularly escorted tours where everything is arranged and done for them. Those over 60 travel more to most overseas destinations than the average New Zealander.

It is also a prime buying market exceeding national averages for financial investment and household insurance. Consumer habits of the market shows a high interest in a wide number of product categories which include food, clothing, cosmetics, beauty aids, sherry and spirits. Most enjoy shopping at supermarkets where parking is easier and values may be better. Many buy new cars on retirement although they actually may drive less than the average. They generally are very low users of public transport. As one might expect, the retired have a high usage of legal and accounting services. They are less likely to do major

household jobs themselves when involved with home renovations or other repairs and are, therefore, high users of services in the home improvement market.

Planning for retirement starts well before they are aged 60. A recent study found the items most bought by the 50 to 64 age group were home furnishings, furniture, microwave ovens and video recorders.

Generally, retired people have a very positive view-point and see themselves as lively, independent, caring New Zealanders and as vital people with keen interests in travel, current affairs, finance hobbies, sport, their homes, family life and in other people of their own age group.