Abstract
The mass affluent segment is defined as those having between $100K and $1 million in liquid investable assets (excluding the primary residence). People in this group fall between the middle class and the wealthiest consumers and are willing to pay for higher quality and performance. They are concentrated largely-though not solely-in the Baby Boomer segment; those who are between the ages of 43-61. They can afford "affordable" luxuries, such as Godiva chocolates and daily Starbucks' lattes, even if they can' t spring for the most luxurious and expensive clothing, cars, or gourmet restaurants.
Because such a large percentage of this group are Baby Boomers, they are headed for retirement in record numbers, and offer tremendous opportunity for financial services firms that can offer assistance in retirement planning and income distribution.
· They are looking increasingly for advice on their financial situation, though they are choosy about where they get it. However, banks are missing an opportunity - less than half say that their primary bank has offered to assist them with retirement planning.
· They are very interested in the quality of their relationships and experiences. For instance, financial services companies who target this group with experiential marketing will have an edge.
· They are less interested in leaving a meaningful estate to their heirs than previous generations - which means more need for retirement planning and less need for estate planning.
· The economy is affecting the ability and willingness of the mass affluent segment to spend. A large portion of this group say they are worried about the economy and are spending less. Because a large part of the wealth held by mass affluents is in real estate, the current downturn in the market is making them more economically vulnerable than any other segment.
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