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New approach needed on products for older people

Financial services providers are taking older customers for granted, says a report from Datamonitor.

Report author Karina Purang says wealth is increasingly concentrated among older age groups and they have become an essential target for financial providers. He says: “The over 50s represent a goldmine for financial services providers.”

But the report says not enough is being done to entice this age group in terms of developing products tailored to their needs.

It adds that savings and investments are the greatest opportunities as older customers have a significant amount of wealth. This can be done by redesigning products and adopting proactive marketing of these products.

It says household insurance is one of the target products for the over 50s and believes firms should target this age group through household income bands rather than age bands.

The report concludes that marketers should target attitudes, not age groups, which means a greater need for monitoring through regular focus group sessions and avoiding making assumptions based on age.

Purang says: “Senior citizens have gone through a number of life events and lifestages before reaching the crucial age of 50. Experiences differ and so do needs and behaviours. Providers need to consider each of their financial products separately and come up with an attractive offer that will suit the needs of each of the sub-groups within this customer segment.”

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