The First of the Generation Xers Starting (Gulp) to hit the Big 50

Published in the Woonsocket Call on January 10, 2016

With the New Year’s celebration on January 1, the first of America’s 62 million Generation Xers are on AARP’s radar screen as potential members. These individuals have hit a demographic milestone, turning age 50 this year.  Now, it’s time for the generation that is following the Baby Boomers, to begin thinking about their later years and what resources they will need if they are thrust into the role of caregiver for their parents and grandparents.

Demographers says that Generation Xers (born between 1965 and 1979) is the middle generation, sandwiched between Baby Boomers and Millennials.  “As they grow older, it is important to acknowledge that they are having a different experience than their cohorts, and that they are more than just an unsung demographic who wore parachute pants and acid wash jeans,” says a recent AARP press statement, announcing the first arrival of this generation into their fifth decade.

The First Vanguard of Gen Xer’s Turn 50

AARP notes in 2015, 4.4 million Gen Xers hit the big-5-0.  This year another 4.1 million are expected to join the ranks of Americans over age 50, notes AARP, predicting that this generation will take on the role of challenging “outdated perceptions of aging and empower people to take control of their futures”

“AARP is excited to welcome Generation X to the 50-plus community and be a resource for them as they embrace their age and live the life that they want,” said Sami Hassanyeh, AARP Chief Digital Officer. “They face different challenges and have different goals than their predecessors, and deserve every opportunity to explore the possibilities that lie ahead.”

According to the Washington, D.C.-based AARP, the nation’s largest aging organization, Generation Xers carry far more fiscal responsibilities than previous generations have or even the next one, the Millennial Generation.  Now, in their 40s and 50s, this generation is financially supporting their children while being caregivers for their aging parents.  With life expectancy increasing Generation Xers must continue working to pay the bills, but like the aging baby boomers must rethink the concept of growing old and where they will put their time and energy in retirement.

“Though Generation Xers feel less financially secure than their parents in regards to retirement, they also plan to work longer and embrace new opportunities in this evolving life phase. Most people turning 50 today can expect to live another 30-plus years, and many are already taking steps towards increasing their longevity – 87% consider themselves in good health and 55% maintain a healthy diet. They are re-imagining this life transition and expect their future years to be more flexible and rewarding than ever before,” says the AARP statement.

Key Generation Xer’s Metrics

AARP Research provides a snap shoot the Generation Xers (www.aarp.org/research/topics/life/info-2015/generation-x-snapshots.html?cmp=RDRCT-GNXNST_DEC08_015).  As to diversity: sixty percent are white; 18 percent Hispanic/Latino; 12 percent are African and 7 percent Asian.  Most are married (64%) but one in five (19%) have never married.  Fifty percent of Generation Xers have children age 18 years or younger living at home while 67 percent of this generation have children of any age living at home.  This generation is well-educated with 35 percent receiving a Bachelor’s degree or higher (35%). Twenty seven percent have some college education.  The median income of this generation is $70,501.

Fifty six percent of this generation feels overwhelmed with financial burden (carrying an average debt of $111,000). Fifty five percent use the internet for on-line banking.

But, when thinking about retirement, 35 percent are confident they will have enough income to live the life they envision in retirement.  But, few Generation Xers are confident Medicare (34%) and Social Security (24%) will be available to them like it is for those currently receiving the retirement checks.

Looking at health, Generation Xers say that “the number one element for a good life is good health.”  They take responsibility for maintaining their health and well- being, too. Eighty six percent of this generation has health insurance.  Seventy two percent say that they trust their physicians the most for health information.

“From my perspective, this age group entering our membership demographic signals an opportunity for AARP to build our relevance in the lower end of the 50+ population,” said John Martin, Director of Communications at AARP Rhode Island. “When I meet these folks I get excited because more likely than not, they have been connected to the Internet for some time and are up to speed when it comes to technology and social media.

Time is on Their Side

“Generation X, the research shows, is quite forward-looking – as well as motivated — when it comes to working and living in one’s 50s with an eye toward health & fitness, retirement planning and having a say in making sure one’s community is heading in the right direction. The good news for Generation X, I would say, is that time is on their side. They can make changes during the final 15-20 years of their work life that will make everything after much better. So, when they embrace online resources and I can keep them current via email on issues relevant to the road ahead it is very exciting,” Martin added.

“I am pleasantly surprised when I meet people across Rhode Island who declare ‘now that I’m 50’ it’s time to join AARP. To me, what they are saying is that they get it,  that membership represents a transition that is all about fulfilling their aspirations and building confidence that they will live out their lives with independence and dignity.”

AARP is no longer the membership organization for just the Greatest Generation (1900 to 1924), the Silent Generation (1925 to 1944) and Baby Boomers (1946 to 1964). It is fr Gen Xers (1965 to 1984), too, especially if they want to take control of the quality of life they will experience in their retirement years and beyond.

For more information about AARP, go to AARP.org.

 

 

 

 

Baby Boomers Already Making Reservations

 Newly-Released AARP survey details travel trends by generation next year — 2016

Published in the Woonsocket Call on December 6, 2015

With the coming New Year, Baby Boomers have already begun to plan next year’s vacations.  A new AARP survey released last month gives a little insight into what America’s Boomers are us a glimpse of this generation’s travel trends (about 76 million strong who spend over $120 billion annually to travel), from destinations, to lodging and trip planning tools used.

“The vast majority of Baby Boomers are planning to drive, fly or set sail on leisure trips in 2016, with an average of 4 or 5 trips already in the works,” said Stephanie Miles, VP, Products & Platforms, AARP. “Boomers make up a large segment of the traveling public, and so it’s particularly important for the travel industry to be aware of what Boomers are looking for in their vacations going into 2016. This new survey finds that their travel desires often differ greatly from younger travelers.”

Key motivators for older travelers to take vacations are to spend time with family and friends (54%), to relax (42%) and to get away from the routines of everyday life (39%), note the researchers.  Millennials are more likely than any other generation to plan a trip to “go on an adventure.”

According to AARP’s Travel survey, released on November 24, a whopping 99 percent of Baby Boomers respondent say they will travel in 2016, about three-quarters have already chosen their destination(s).  About 12 percent who are planning on taking a domestic trip have already booked it in September.

Baby Boomers tend not to use online resources and mobile apps for planning and booking trips to the same degree as their younger generations will, note the survey findings.

For the traveling Boomer, the survey says that the most important items to bring on a trip are meds, comfortable shoes, a camera and sunglasses.  But these older travelers do not forget to bring a good book and emergency phone numbers, too

The survey findings indicate that while Boomers carefully watch their pocket books the cost of the trip is not the “deal breaker,” say the researchers.  More than half of Millennials and Gen Xers say that cost is a barrier to leisure travel, but only 45 percent of Boomers agree with these younger generations. Additionally, more than 6 in 10 Boomers say that higher airfares have had no impact on their personal travel plans.

International traveling “will be especially hot” next year for older travelers. About 32 percent of the survey respondents plan to be traveling overseas in 2016 with 29 percent scheduling these trip in the spring.  Europe attracts the interest followed by the Caribbean and Mexico (each 19 percent) for the older travelers who view these “bucket list” trips or “once-in-a-lifetime experiences,” say the researchers.

But America’s Boomers are also planning to take domestic trips next year on weekends and during the upcoming summer. The survey results indicate that nearly a third of the Boomers will take advantage of hot summer weather to make domestic trips, with 23 percent planning weekend getaways.  Twenty-six percent of the older respondents say they will take domestic multi-generational trips (with three or more generations traveling together) in 2016, but that’s down from 32 percent in 2015.

Boomers, heading off to warm U.S. destinations, will be packing their sun tan lotion, shorts and flip-flops when traveling in 2016.  Florida (19%) and Las Vegas (9%) will be the most popular domestic destinations for these older travelers.  Big cities like New York, Boston and Chicago also catch their attention. While hotels will be booked by a large majority, 30 percent plan to stay with family and friends.

When it comes to hotel lodging amenities, Boomers look forward to free Wi-Fi.  Forty-three percent say that when choosing a hotel, free Wi-Fi is key to their booking a room.  Eighty six percent of older travelers seeking rental homes also want this amenity. While roughly 4 in 10 Boomers stay at hotels or motels when they travel, Airbnb and VRBO are gaining in popularity: 1 in 10 Boomers are planning to use those services to rent a private residence instead of using a hotel on a 2016 trip.

The researchers say that during travel Boomers do not tend to linger in an airport terminal and are the least likely generation to take advantage of onsite airport amenities, expect for restaurants.

As to social media, the survey found that when on vacation about two-thirds of the respondents say they will not post to a social media site. About eight three percent will stay connected to “the outside world” by watching news on TV or online.

Finally, older workers continue to behave differently from those in other countries. Slightly half plan to use all of their vacation time next years. When on trips, one-third plan to bring work with them that ultimately will account for 10 percent of their vacation time.

AARP’s online survey was conducted September 17-28, 2015 among males and females 18 and older who had taken at least one trip 50 miles or more away from home, with a two-night stay, in the past two years.  The survey can be found at aarp.org/2016TravelTrends.

 

Freelance Economy Can Be Powerful Economic Engine

Published in Pawtucket Times on June 22, 2015

Last week, it took three days for Sign Painter Jayson M. Salvi to put the final touches on the façade of the Camera Werks on Hope St.   As he sat on the pavement printing the signage, passerbuyers would stop and chat, admiring his craft.

For the 41-year-old Salvi, his passion for sign painting began in high school, ultimately continuing in his eight year stint in the U.S. Navy.  Salvi says that he usually ended up painting logos and signs on doors wherever he was assigned.

With an honorable discharge from the Navy in 2000 and a degree in business administration he earned at Norfolk University while serving in the military, Salvi came to Providence to be near family.  He began his sign painting business at the former Providence-based Tazza Restaurant after an unsuccessful venture in the candle making business, followed by several retail jobs.  Word of mouth advertising about his artistic talent led to more freelance painting opportunities at the Trinity Brew House, RISD’s Second Life, a nonprofit student run recycling material center, and the Camera Werks, to name a few.

Working a full-time retail job pays for his health insurance, for him and his wife, Kate, a self employed photographer and card designer.     Salvi estimates that he pulls in around $30,000 a year from his freelancing.  “Try buying a Cadillac with that,” he says.  But in a blink of an eye he would leave retail forever to make a living from full-time sign painting, he says. “Self employed people do whatever they need to do to pay the bills to do the things they love to do,” he says.

Spotlight on Rhode Island Freelances

According to federal census data released last month, Salvi and his wife join over 73,700 sole proprietors in Rhode Island who earned a total of over $3.3 billion in annual income. These Ocean State residents are self-employed, sole proprietors, freelancers, independent contractors and non-employee small businesses, says Olon Reeder, of Olon Reeder Associates, a public relations consulting firm that represents self employed clients.  .

The federal census data, culled from 2013 sole proprietor income tax filings from the U.S. Internal Revenue Service, indicate that the top work performed by Rhode Island’s self employed workers included Professional/Technical/Scientific services; Other Non-Governmental services; Real Estate; Construction; and Health and Social services, says Reeder.

Reeder, 56, states that despite an improving jobs market in Southern New England [the latest state unemployment numbers drop to 5.9 percent, the lowest since 2007], it’s still very difficult for many unemployed Rhode Islanders to get back to full-time work.  But, the Ocean State has been able to maintain stable job growth, in particular, the state’s freelance workforce, says the North Providence resident and businessman.

Reeder, who has been a public relations consultant for almost 28 years, notes that many sole proprietors active in Rhode Island are “baby boomers” aged 50 and over that are turning to freelance work full time because they were laid off from regular work or early retirees; are encoring into lifelong ambitions they feel are essential in the marketplace; or are working for themselves out of necessity due to long term unemployment.

Nationally, the latest Census Data figures report that for 2013 there were 23 million Americans working solo earning $1 trillion in receipts, that’s up from 2011 figures, which showed at that time there were only 22.5 million people who worked for themselves and collectively earned at that time $989.6 billion, says Reeder..

”The latest figures, from 2013, also show that Rhode Island’s sole proprietors had receipts of $3.3 billion.,” Reeder adds, noting that when compared to similar numbers from 2011, self employment increased by 700 jobs over the last three years (over 200 annually) and income went up by $2 million over the last three years (over $300 thousand annually).

Interestingly, next door in Massachusetts, self employment went dramatically down in the “Bay State,” as Federal figures indicated that only 263,500 freelance workers in 2013, compared to the 471,800 solo workers employed in 2011. Earnings for Massachusetts independents also fell in 2013, with only $15.2 million in receipts, compared to $24.4 million in 2011, he said.

“Finally, Rhode Island has something we do best when it comes to our self-employed workers,” he says, noting that the state now rates better than its next door neighbor. “It’s something we can boast about,” he says.

Self-Employed, an Economic Engine

State and local politicians tend to focus their energy on attracting large companies to the state [like 38 Studios], but tend to ignore the self-employed, charges Reeder, a long time tireless and passionate advocate for self-employed workers.  “The self employed are a powerhouse that can no longer be ignored and must be reckoned with,” he says.

“Rhode Island’s self employed are a best kept secret that need to be taken advantaged of to improve our state’s long tern economic development and quality of life,”  says Reeder.  “Very few businesses create over 200 jobs a year and pay per capita per sole proprietor an average of over $44,000 a year. This is how the freelance economy is changing our lives,” he says.

With the ending of this years’ legislative session, Reeder calls on lawmakers to look down the road to investing in state’s self-employed work force.  Usually the General Assembly tackles the tax code to make it more business-friendly for large corporations or targeted industries without considering providing incentives or tax incentives to the state’s self employed.

Like previous years, Reeder opposes any revisiting of placing fees or expansion of sales taxes on services provided by the self-employed.   “There must be a level playing field for all business,” he says, ‘everyone should be treated equally.”.

Reeder believes Rhode Island has become a leader in growing its free lance work force and this could just become a powerful economic engine to revitalize the state’s  sputtering economy.

Herb Weiss, LRI ’12, is a Pawtucket-based writer covering aging, health care and medical issues.  He can be reached at hweissri@aol.com.