Remember the Generation X stereotype? They were long-haired, flannel-wearing slackers, too concerned with the relationship between existentialism and the Slurpee to save money for the future. Well, surprise! Those greasy-haired grungers have grown up, gotten haircuts and somehow managed to collect some serious dough along the way. Here are some reasons why you should be targeting Generation X clients now along with some of the products and services they may be interested in.
- Most professional Xers have four-year
college degrees at minimum. Many were fortunate enough to have
all or most of their education provided by their parents. Those
who didn’t, started out their professional life in debt,
saddled with student loans to repay over five to 10 years. Most
want their children to avoid that burden and they have a strong
desire to provide a level of education at least equal to their
own. Product: 529 plans
- Generation Xers bought their first house earlier
than their parents did, and began having children later than their
parents did. Because of this, they are more likely to have greater
discretionary income when their children are younger and more
concerned about leaving those children in the lurch should the
worst happen. Product: Life insurance
- Contrary to the national average, Generation
Xers are quite serious savers. They have seen their parents working
beyond the retirement age they envisioned, or living a retirement
lifestyle that is less than they anticipated. As a result, most
people in this age bracket participate in employer-sponsored retirement
plans, many at the maximum level. Product: Retirement
planning/401(k)
- Many Generation Xers started investing at
a very early age. They recognize the perils of the Social Security
systems and are taking control of their own destiny at a much
earlier age than the Baby Boomers did. Product: Long-term
care insurance
- Generation Xers are already familiar with mutual funds and may have participated in the boom/bust stock market of the 1990s. They expect instant access to account value information via the Internet. They are starting to understand what paying taxes is really about due to higher incomes and larger 1099 distributions from investments they own. Thus, tax-deferral is an attractive feature. Product: Variable life insurance
These tips were taken from the article “Selling Variable Life to Generation X,” which originally appeared in the November 2000 issue of Advisor Today.
