Grey Market - Ireland - July 2004

Contents

Introduction

• Lifestage definitions
• Geographical, national and regional definitions
• Conversion factors
• Population
• Exchange rates
• BMRB target group index sample sizes
• Abbreviations

Executive Summary

• The Grey Market: large, affluent and growing
• Financial circumstances are changing
• 45+ consumers more likely to use most financial products and services
• The Grey Consumer
• Grey consumers are taking more holidays
• Internet use increasing
• Grey consumers resistant to the idea of being in debt
• Television more important than time with family
• 'Homes and holidays' are the main spending priorities

Factors Influencing Lifestyle

• NI population growth due to growing grey market
• Figure 1: NI population, by age category, 2000-16
• Figure 2: NI population, by age category, 2000-16
• RoI Grey market growth drives population
• Figure 3: RoI population, by age category, 2000-16
• Figure 4: RoI population, by age category, %, 2000-16
• Parental responsibility more prevalent as families are starting later
• Figure 5: Average age of women at marriage and birth of first child, NI and RoI, 1993-2002
• Longer life-expectancy will place a strain on pension funds
• Figure 6: Life expectancy at birth, by gender, NI and RoI, 1981-2002
• Greys have higher average earnings
• Figure 7: Average weekly earnings, by age group, NI, 1992-2002
• Figure 8: Average weekly earnings, by age group, NI, 2002
• Over-45s will make up greater percentage of the workforce
• Figure 9: Economic activity breakdown, by age, RoI and NI, 2003
• Grey consumers lose out to lower interest rates
• Rising house prices make over-45s feel more affluent
• Figure 10: Home ownership, by age group, NI and RoI, 2003
• Figure 11: Average house prices in June, NI and RoI, 1998-2003

Market Size

Northern Ireland

• Figure 12: Population aged 45+, by age group, in thousands, NI, 2000-08
• Republic of Ireland
• Figure 13: Population aged 45+, by age group, in thousands, RoI, 2000-08
• Grey Consumer Finance Clusters

Financial Cluster Analysis - Republic of Ireland

• Figure 14: Market size of cluster groups, as percentage of 45+ population, RoI, 2003
• Figure 15: Cluster groups - Statements related to financial behaviour (percentage point difference
• from average), RoI, 2003
• RoI clusters demographic analysis
• Figure 16: RoI Financial Clusters, by demographic sub-group, 2003
• Gender differences are not significant
• Financially Frivolous have the most responsibilities
• Thoughtful Financers are the most affluent
• Senior Spenders are 'unconstrained'

Financial Cluster Analysis - Northern Ireland

• Figure 17: Market size of cluster groups, as percentage of 45+ population, NI, 2003
• Figure 18: Cluster Groups - Statements related to financial behaviour (percentage point difference from average), NI, 2003
• NI clusters demographic analysis
• Figure 19: NI Financial Clusters, by demographic sub-group, 2003
• Flippant Financers are the least likely to be retired
• Senior Savers tend to be more affluent
• Half of Prudent Purchasers are retired

Lifestyle

Lifestyle attitudes

• Figure 20: Agreement with selected lifestyle statements, NI and RoI, 2003
• Substance rather than style
• Grey consumers understand the importance of lifelong learning
• Grey consumers favour the smoking ban
• RoI Cluster responses to lifestyle statements
• Figure 21: Agreement to selected lifestyle statements, by cluster groups (percentage point
• difference from average), RoI, 2003
• Financially Frivolous show negative responses
• Thoughtful and 'Content' Financers
• Senior Spenders have a positive outlook on life
• NI cluster responses to lifestyle statements
• Figure 22: Agreement to selected lifestyle statements, by cluster groups (percentage point
• difference from average), NI, 2003
• Flippant Financers show reserved lifestyle
• Senior Savers are happy with who they are
• Prudent Purchasers are still striving

Holidays

• Figure 23: Holidays in the last 12 months and number of holidays, RoI, 2003
• The grey holiday market is growing...
• Figure 24: Holidays in the last 12 months and number of holidays, NI, 2003
• ...with many taking more than one holiday a year
• Figure 25: Have been on holiday in the last 12 months, by socio-demographic groups, RoI and NI, 2003
• Holidaying decreases during retirement
• More affluent consumers are the most able to holiday
• Figure 26: Have been on holiday in the last 12 months, by cluster groups, RoI and NI, 2003

Using the Internet

• Figure 27: Average number of hours on the Internet per year, by age and cluster groups, RoI and
• NI, 2003
• Internet use still higher among under 45s...
• ...yet Internet use among 45+ adults is growing
• Figure 28: Used the Internet in the last 12 months, RoI and NI, 2003

Leisure activities

• Figure 29: Top ten leisure activities, RoI and NI, 2003
• RoI Leisure Activities
• Figure 30: Leisure activities, by gender, RoI, 2003
• Figure 31: Leisure activities, by age group, RoI, 2003
• 45-54 enjoy going out
• Figure 32: Go to pubs and bars for a meal or a drink, RoI and NI, 2003
• Figure 33: Leisure activities, by socio-economic group, RoI, 2003
• DEs easier to target through television
• NI leisure activities
• Figure 34: Leisure activities, by gender, NI, 2003
• Women prefer more social activities
• Figure 35: Leisure activities, by age group, NI, 2003
• Figure 36: Leisure activities, by socio-economic group, NI, 2003
• Affluent greys are more active outside the home

Attitudes Towards Finance

• Figure 37: Agreement with selected finance statements, RoI and NI, 2003
• RoI finance attitudes
• Figure 38: Agreement with selected finance statements, by all adults and gender, RoI, 2003
• Men and women tend to share similar attitudes to finance
• Figure 39: Agreement with selected finance statements, by age, RoI, 2003
• 45-54 need more help with finances than 55+ consumers
• Figure 40: Agreement with selected finance statements, by socio-economic groups, RoI, 2003
• Most affluent consumers show tightest finances
• Figure 41: Agreement with selected finance statements, by income groups, RoI, 2003
• Tighter wallet encourages tighter controls
• Affluent consumers want tailored banking
• Supermarket finance faces resistance from affluent consumers
• Figure 42: Agreement with selected finance statements, by lifestage, RoI, 2003
• Independence brings cautious behaviour
• Unconstrained couples are the most proactive in finance
• NI finance attitudes
• Figure 43: Agreement with selected finance statements, by all adults and gender, NI, 2003
• Women manage the money
• Figure 44: Agreement with selected finance statements, by age, NI, 2003
• Parental and work responsibilities get in the way of finance for 45-54s
• Figure 45: Agreement with selected finance statements, by socio-economic group, NI, 2003
• Affluence allows for exuberant finances
• Figure 46: Agreement with selected finance statements, by income band, NI, 2003
• Less affluent consumers 'watch the pennies'
• Figure 47: Agreement with selected finance statements, by lifestage group, NI, 2003
• Lifestage and available income influence finances

Financial Products and Services

• Figure 48: Penetration of selected financial products, by 45+ consumers, NI and RoI, 2001-03
• Figure 49: Penetration of selected financial products, by age, NI and RoI, 2001-03
• Experienced grey consumers appreciate the need for insurance

Mortgages

• Figure 50: Penetration of Mortgages, by demographic and socio-economic groups, NI and RoI,2003
• Figure 51: Penetration of mortgages, by cluster group, NI and RoI, 2003

Insurance

• Figure 52: Penetration of selected insurance types, by demographic and socio-economic groups,RoI, 2003
• Figure 53: Penetration of selected insurance types, by cluster groups, RoI, 2003
• Figure 54: Penetration of selected insurance types, by demographic and socio-economic groups,NI, 2003
• Figure 55: Penetration of selected insurance types, by cluster groups, NI, 2003

Daily banking

• Figure 56: Penetration of current and savings accounts, by demographic and socio-economicgroups, NI, 2003
• Figure 57: Penetration of selected insurance types, by cluster groups, RoI and NI, 2003

Credit cards

• Figure 58: Penetration of credit cards, by demographic and socio-economic groups, RoI and NI2003
• Credit card use decreases with age
• Income levels continue to influence penetration...
• ...while parental demands also influence usage
• Cluster analysis shows varied credit card usage patterns
• Figure 59: Penetration of credit cards, by cluster groups, RoI and NI, 2003
• Figure 60: Response to selected finance statements (Percentage point difference from average)
• and credit card usage, NI and RoI, 2003
• RoI clusters credit card usage
• NI clusters credit card usage

Pensions

• Figure 61: Comparison of state pension level, UK (NI) and RoI, 2003
• RoI Pensions
• Figure 62: Source of pensions, RoI, 2001-03
• Private and company pensions schemes showing increases...
• ...yet state pensions are still the largest pension scheme
• 45-54-year-old consumers most likely to have personal/company pension
• Figure 63: Source of pensions, RoI, 2003
• Responsibility for own pension increases with affluence
• Figure 64: Source of pensions, RoI, 2003
• Figure 65: Source of pensions, RoI, 2003
• School age parents are the least likely to rely on the state
• Figure 66: Source of pensions, RoI, 2003
• RoI Cluster group pension arrangements
• Figure 67: Source of pensions, RoI, 2003
• Financially Frivolous want pensions 'taken care of'
• Thoughtful Financers want informed choices
• Senior Spenders need to choose between present spending and future security
• NI Pensions
• Figure 68: Source of pensions, NI, 2001-03
• Contributory company pension schemes on the increase...
• ...with state pensions also increasing
• Younger grey consumers most likely to rely on personal/company pensions
• Figure 69: Source of pensions, by age, NI, 2003
• Use of company and self-employed pensions higher among affluent grey consumers
• Figure 70: Source of pensions, by socio-economic group, NI, 2003
• Figure 71: Source of pensions, by income group, NI, 2003
• Marketers should consider the present responsibilities of grey consumers
• Figure 72: Source of pensions, by lifestage group, NI, 2003
• NI cluster group pension arrangements
• Figure 73: Source of pensions, by cluster groups, NI, 2003
• Flippant Financers need to plan now rather than later
• Senior Savers want informed choices
• Prudent Purchasers want added personalisation

Speaking to Grey Consumers

Media statements

• Figure 74: Agreement to selected media statements, RoI and NI, 2003

Media attitudes in RoI

• Figure 75: Agreement to selected media statements, by gender, RoI, 2003
• Women report more advertising awareness than men
• Figure 76: Agreement to selected media statements, by age, RoI, 2003
• Local radio news is best for targeting retired consumers
• 45-54 consumers show better response to 'active' communications
• Figure 77: Agreement to selected media statements, by socio-economic group, RoI, 2003
• Local news for local people
• Figure 78: Agreement to selected media statements, by lifestage, RoI, 2003
• Lifestage demands affect media awareness

Cluster group responses to media statements

• Figure 79: Agreement with statements related to media and advertising, by cluster group
• (percentage point difference from average), RoI, 2003
• Senior Spenders are the most 'aware of advertising'
• Thoughtful Financers are keen radio listeners
• Communicating to Financially Frivolous may be problematic

Media attitudes in NI

• Figure 80: Agreement to selected media statements, by gender, NI, 2003
• Women more likely to notice local advertising
• Figure 81: Agreement to selected media statements, by age, NI, 2003
• Radio news advertising most effective for targeting retired consumers
• Figure 82: Agreement with selected media statements, by socio-economic group, NI, 2003
• Radio effective for communicating to affluent consumers
• Figure 83: Agreement with selected media statements, by lifestage, NI, 2003

Cluster group responses to media statements

• Figure 84: Agreement with statements related to media and advertising, by cluster group
• (percentage point difference from average), NI, 2003
• Flippant Financers show lower levels of media awareness
• Prudent Purchasers are demanding of advertising

• Financial Priorities - The Year Ahead

• Figure 85: Financial priorities, RoI and NI, 2003

RoI financial priorities

• Figure 86: Top five financial priorities, by age group, RoI, 2003
• 'Holidays and homes' are the major concerns
• Figure 87: Top five financial priorities, by age group, RoI, 2003
• Financial priorities shift with age
• Figure 88: Top five financial priorities, by socio-economic class, RoI, 2003
• Affluent greys prefer holidays and health clubs

NI financial priorities

• Figure 89: Top five financial priorities, by age group, NI, 2003
• 'Home and holidays' are the top priorities
• Figure 90: Top five financial priorities, by age group, NI, 2003
• Half of 45-54-year-olds want to redecorate the home
• Figure 91: Top five financial priorities, by socio-economic class, NI, 2003
• Going on holiday less important to less affluent greys

Appendix

• Grey population tables
• Figure 92: Population of all adults aged 45 and over in RoI, by age group, in thousands, 2000-08
• Figure 93: Population of all adults aged 45 and over in NI, by age group, in thousands, 2000-08
• RoI lifestyle statements
• Figure 94: Agreement to selected lifestyle statements, by gender, RoI, 2003
• Figure 95: Agreement to selected lifestyle statements, by age group, RoI, 2003
• Figure 96: Agreement to selected lifestyle statements, by socio-economic group, RoI, 2003
• Figure 97: Agreement to selected lifestyle statements, by lifestage group, RoI, 2003
• NI Lifestyle statements
• Figure 98: Agreement to selected lifestyle statements, by gender, NI, 2003
• Figure 99: Agreement to selected lifestyle statements, by age group, NI, 2003
• Figure 100: Agreement to selected lifestyle statements, by socio-economic status, NI, 2003
• Figure 101: Agreement to selected lifestyle statements, by lifestage group, NI, 2003
• Leisure priorities
• Figure 102: Leisure activities (complete list), by socio-demographic variables, RoI, 2003
• Figure 103: Leisure activities (complete list), by socio-demographic variables, NI, 2003
• Financial priorities
• Figure 104: Financial priorities (complete list), by socio-demographic variables, RoI, 2003
• Figure 105: Financial priorities (complete list), by socio-demographic variables, NI, 2003