'Greys' cannot be ignored: report

By THIS IS MONEY
Updated:

 

The future is bright for the over-45s in Britain who make up an increasingly affluent sector that cannot be ignored, the London-based think-tank Business Strategies has said.

Melanie Lansbury, economist at Business Strategies, said: 'The service sector - providing anything from holidays to healthcare and car repairs to catering - needs to understand the spending power of these 'grey' consumers fully and be able to meet their requirements. Across the UK the number of greys is increasing all the time.'

She said the grey market of 23m over-45 year olds had so far been largely unexploited. 'With the obvious exception of Saga, most companies in the leisure and entertainment industries have tended to target the younger population, couples and families,' she said.

'The same applies in some parts of retailing, particularly fashion. But with the population ageing and the wealth of greys increasing the importance of the grey market can no longer be overlooked.'

The report shows that 10 years ago 21m people in Britain were over the age of 45. In 10 years' time this will have risen to 26m. Nearly a fifth of the population - some 12m people - will be past retirement age in 2010.

While the after-tax income of households headed by someone aged 50-64 was £432 last year, slightly ahead of that for a family of prime working age, the income of retired greys fell to £249, the majority of which came from social security or annuities and pensions.

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