Preparing for the Golden Years

Americans have retirement on their minds. A recent report from the Pew Research Center claims that for survey respondents between 36 and 40, “53% say they are either ‘not too’ or ‘not at all’ confident that their income and assets will last through retirement.” But it’s not just 36–40 year olds—34% of respondents between 60 and 64 also lacked confidence in the size of their retirement nest eggs.[1] With more than 10,000 new baby boomers reaching retirement age every day, financial advertisers have a large, interested audience they can reach.[2]

To help advertisers target these customers preparing for retirement, MaxPoint leveraged its proprietary Digital Zip® technology to develop two customer profiles. The first includes those who prepare for retirement by searching online for resources about more stable investments, debt elimination, and Social Security. This group is concerned about making the most out of their existing nest eggs in the coming years. The second group includes those who spend on financial services and make riskier investments in an effort to grow their nest eggs for when they reach retirement age. The following report shares some of our findings about the two audiences.

Retirement Planner Profile and Locations
When we analyzed the data from our Digital Zip technology, including our proprietary interest data, we learned that retirement planners:

  • Are over 55 years old
  • Own their homes
  • Are less likely to have children in the house

This audience is closer to retirement age and tends to choose stable investments over other financial investments. Their tolerance for risk is lower—so they focus on retirement rather than pure wealth generation.

Our interest data shows that in addition to retirement planning resources, this group consumes content about organic living, elderly care, and the economy. Additionally, their purchases include video rentals, communication services (such as cell phones and Internet services), meals at quick service restaurants, and items from office supply chains.

The top neighborhoods in the nation for retirement planners are located in:

  • Columbus, OH
  • Denver, CO
  • Los Angeles, CA
  • New York, NY
  • Orlando, FL
  • Phoenix, AZ
  • St. Louis, MO
  • San Francisco, CA
  • Seattle, WA
  • Washington, DC

Financial Services Spender Profile and Locations
MaxPoint used its Digital Zip technology, including credit card purchase data, to build the profile of customers who spend on financial services, which include investment services, tax preparation, and other financial and accounting services. We found that these spenders:

  • Are over 45 years old
  • Have college educations
  • Are less likely to have children in the house

This group is younger than the group that focuses on retirement planning. The consumers’ relative youth could explain why they’re not as interested in retirement planning—they likely focus on riskier financial investments because they have more time until they retire.

Our proprietary interest data revealed that financial services spenders have strong interests in interior design, foreign policy, eco-friendly living and products, and health and fitness. In addition to their financial services spending, they also spend their income at general merchandise stores (typically home goods stores), at home furnishing stores, and on consumer appliances and electronics.

We found that the top neighborhoods in the nation that include financial spenders are found in:

  • Chicago, IL
  • Dallas, TX
  • Houston, TX
  • Las Vegas, NV
  • Los Angeles, CA
  • Miami, FL
  • New York, NY
  • Phoenix, AZ
  • San Diego, CA
  • San Francisco, CA

Although four cities appear on both lists, the two groups reside in different neighborhoods within those cities. For example, within the Los Angeles DMA, planners reside most heavily in Seal Beach while financial spenders live in Manhattan Beach. This demonstrates the importance of looking beyond the DMA to target customers at a neighborhood level. 

What This Means for Advertisers
If you’re in the finance business, this information can help you target audiences more precisely and build better, more focused creative.

For example, to promote retirement planning services, focus on areas with an older population. Your creative should speak to this crowd using images and messages that appeal to people close to retirement. And keep the Pew research in mind—consider focusing your message on alleviating financial worries.

It’s a great time to be in financial planning. The oldest baby boomers have already exceeded the retirement age, and tons more join their ranks every day. If you want to get a bigger piece of the pie, then this data should help you get started.

To learn more about financial services spenders and retirement planners, check out our infographic, which includes heat maps for some of the top cities in each profile.

MaxPoint in Action
MaxPoint has run several campaigns for retirement planners and for financial services spenders.

National Non-Profit’s Financial Planning Campaign—A national non-profit wanted to drive awareness of a financial planning and services program for African Americans and Hispanics. The program provides information and education on investing, debt elimination, and budgeting. To help, MaxPoint targeted Digital Zips around the nation that over-indexed for African Americans and Hispanics over 40 years old, with annual incomes between $25,000 and $75,000. The ad campaign produced a response rate that was 78% higher than the industry average.[3]

National Private Banking Company—A private banking company wanted to build awareness of its programs and offerings. MaxPoint served ads in Digital Zips that over-indexed for married adults with annual household incomes above $100,000 and between $1 and $5 million in investible assets. The campaign resulted in a response rate that was more than three times the industry average.




[3]. Industry average CTR estimated at .09%