WHO has not heard these terms in the last years: Retirement migration, best agers, silver aristocrats or silver market?

They all refer to global ageing. While in the developed countries these terms are associated with an economic threat, in developing countries like the Philippines, we see big economic opportunities in it.

For the first time in history the old will outnumber the younger generations. In 2006 almost 500 million people worldwide were 65 years and older. By 2030 this number is expected to rise to 1 billion, almost 12 percent of the earth’s habitants. This is not a sudden process; nonetheless it will affect us all in the coming decades.

Today the global silver market represents almost 15 percent of the population in industrialized countries. By the year 2030, it will be about 25 percent and in some of the faster aging countries, they will account for almost 30 percent.

Many companies are targeting the global silver market and see it as an opportunity to roll out new products and services for this sector. It is important to keep in mind that the target group aged 50 and above is not heterogeneous and, therefore, has different needs and wants depending on their stage of life they are just in.

In the book The prosperous retirement, guide to the new reality, Michael Stein, CFP, describes three stages of retirement: the go-go, the slow-go and the no-go.

Active retirement or the “go-go” stage is characterized by individuals who generally want to maintain their current life style. The members of this group do not consider themselves “old.” They are described as generally between ages 55 and 69. These retirees tend to be physically and mentally capable.

This phase may not be much different than pre-retirement except that they want to slow down from a hectic life pace and buy that sports car, take that cruise and do all the things they have not had time to do before.

These retirees generally spend more than their pre-retirement lifestyle budget. They travel a lot and some even relocate and many live independently.

Passive retirement or the “slow-go” stage shift is usually brought on by the body saying “slow down.” Between the ages of 70 and 84, life settles into a routine. Retirees in this phase often shop for groceries on Monday, play golf on Wednesdays and eat out on Fridays.

Often travel becomes more work than fun. Expenses for travel and recreation decrease but medical expenses may rise. This is the stage when clients typically downsize their homes and they will need to live close to a medical center for regular checkup and fast treatments in case of emergency.

Clients in the slow-go stage are less likely to actively decide for themselves to move to a foreign country but might be encouraged by their children to do so in order to save on medical expenses.

A common form of housing at the slow-go stage is the ALFs—assisted living facilities, which provide independent living with assisted care where necessary.

The “no-go” stage occurs when the mobility of the retiree decreases rapidly and health-care services and nursing care becomes everyday necessity. Time and age have played a role in slowing down abilities and activities.

For the no-go stage, travel is almost impossible and retirees are tied to a certain place providing them with all their everyday needs, which are more and more replacing their everyday wants. 

A common form of living are nursing homes which provide 24/7 services to the retirees.

From go-go to slow-go to no-go, the wants are slowly replaced by the needs. Decisions are being made less active and outside help becomes more important to the retirees.

When marketing products and services, or even a destination like the Philippines to the retirees, it is important to keep the above-mentioned developments in mind.

Which product or service fits into which stage of life? Can we provide sufficient services, even to the final stage of retirement?

The Retirement & Healthcare Coalition (RHC), which was formed by the American, European, Japanese and Korean chambers of commerce, has been active in the fields of retirement and health care since 2007 and is assisting in the development of products and services for retirees in the country.

If you want to learn more about go-go’s, slow-go’s and no-go’s, the RHC in partnership with the Department of Tourism and the Philippine Retirement Authority is organizing the Third Philippine Retirement & Healthcare Summit on  April 22 and 23 at the Grand Ballroom of the Dusit Thani.

The event is set to recognize the Philippines’s potential as the top retirement destination in Asia and capable of providing quality service to the silver market.

Source: Business Mirror; Opinion; 11 April 2013