Median or Mean. Makes a lot of difference.

Just a thought about the financial figures that we often quote to illustrate the importance of the older consumer. The latest data from the US Federal Reserve (sorry, quoting US figures again) shows that the median net worth —difference between assets and liabilities — of households where the heads are 45 to 54 years old, is just of £82,000. Remember, median means that half the families have more than this amount and half have less.

The average net worth for the group is £278,000. Because the income distribution in the US, as in Europe, is heavily skewed toward the top, the median is probably more representative.

These figures re-enforce the view that 50+ consumer is either going to be wealthy or poor, with many more poor than rich. Fortunately there are marketing opportunites to both these groups, but they will be very different. Lesson from this analysis is be careful when interpreting the national demographic and income data.

Did you know that seven Americans, every minute, reach the age of 50. That is one hell of a lot of birthday cards!