Contrary to most portrayals, retirement unfolds in stages. Much marketing looks at retirement as a sort of finish line. It talks about reaching retirement. Or arriving. In reality, retirement unfolds in stages. Planning around the stages can help financial services marketers more effectively message to retirees.
In general, retirement spending follows a V-shaped pattern. Early-stage retirees may be fulfilling a lifelong dream by purchasing a vacation home or taking a trip. This becomes an active time. And spending tends to reflect that.
Middle-stage retirees may find themselves settling in. Although they may still travel or pursue hobbies, spending tends to dip. Legacy desires may also start to become more important.
In the late stage, retirees may have settled in. But spending tends to rise due to an increase in medical expenses.
Although retirement is different for everyone, the V-shaped pattern gives us a starting point for developing more compelling messaging. To focus your efforts, target a stage. Define the mindset in relation to your product and service. And begin to message in more relevant terms to your retiree prospects.
