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Longevity Revolution Right now, America is changing. We are in the midst of a Longevity Revolution that has never before occurred in human history. When historians look back to determine the single greatest achievement of the 20th Century, I suggest that it will not be the exploration of space, nor the advent of the computer, not even the tearing down of the Berlin Wall. The single greatest achievement of the previous century was the addition of thirty years to human life. It took a millennium to increase human life expectancy from 22 to 25 years, and we have just raised it 30 years in one century. Most experts agree that the 21st Century may very well surpass the 20th in terms of extending life. This unprecedented demographic shift is actually three shifts in one. First we are experiencing a Senior Boom. The fastest growing segment of the American population is our senior segment; 65 and older. Our senior population is growing at three times the rate of the general population. America now has more senior citizens than Canada has total population. If our senior population were a separate country it would be the thirteenth largest country in the world. This Senior Boom will only increase as the 21st Century unfolds. We will double our current senior population by the end of the first quarter of the new century, from about 34 million today to nearly 70 million by 2030. Secondly, at the same time that we have been experiencing a rise in longevity there was Birth Dearth. During the 1960's the U.S. birthrate dropped, creating a Baby Bust. Because of this, we experienced a drop in the number of 18 to 34 year-olds during the 1990's. This segment loss 9% of its population during that decade. This demographic shift has caused the American marketplace to refocus away from youth and onto maturity. The marketing campaigns that targeted the 18 to 34 year-old consumers now must target 40, 50 and 60 plus consumer. Especially when you consider that over 3/4ths of all the financial assets held in America, are held in the hands of people over 50. The third demographic shift taking place is the Aging Baby Boom. The largest of all U.S. generations is the Baby Boomer generation. Those people born between they years 1946 and 1964. There were 76 million Americans born during those years. Over 90% of all child bearing women gave birth after World War II. The generation has actually grown to 80 million due to immigration. The Baby Boom Generation is unique in more ways than just size. They were they first generation of Americans that were born "into the limelight." Prior to this generation, children were in the background of American life. It was the World War II generation that had just survived the Great Depression and world wars who made a promise to their Baby Boom children when they said "our kids aren't going to have to go through what we did." They certainly delivered on that promise. Never before had the quality of life been elevated so dramatically as when they World War II generation passed the torch to their children. American life now centered itself on children. Suburbia had its birth in 1957 so that children could grow up away from the rising problems in the cities. Boomers became accustom to the limelight and never left it. Because of the sheer size of this generation, Boomers have created economic booms in each of the life stages that they have passed through. When they were babies, it was the diaper industry and baby-related products that boomed. When they were teen-agers, it was the soft drink industry and the music industry that had their boom. When Boomers got married and had kids it was the largest real estate boom in current times. And now Baby Boomers are getting focused on retirement. The pre-retirement market has always been made up of people from the World War II generation and the Eisenhower generation. By the year 2005 this market will be dominated by aging Baby Boomers as it continues to grow at a rate of 10,000 people per day. Understanding the demographics is only half of the picture. To maximize the opportunities created by the longevity revolution, you must also factor in the psychographic transformation of your prime target. The psychology of the pre-retirement market is driven by the generation that occupies it. Extended longevity has created a time where we now have six generations alive at the same time. From the youngest generation, the Echo Boomers, to the oldest generation, the Great Depression generation, there are separate and unique values that define their members. The values of a generation are set in place by the events, culture, economy, technology, and even personalities of their times. The more influential the event, the more defining its effect has on the generational values of its members. The complexity of today's marketplace requires that marketers understand and respond to its multi-generational nature. Generational myopia can hamper our ability to connect and bond with members of other generations. This phenomenon causes us to perceive and judge others through the values of our own generation. It can destroy the harmony of the workplace, as well as interfere with our ability to gain the trust of our clients. The longevity revolution is transforming every aspect of American life. The two industries where its impact is felt most profoundly are healthcare and financial services. We must re-invent our healthcare system to focus on the chronic conditions of an aging society, rather than the acute diseases of the past. Financially, we must prepare our clients for the possibility that they may live one third of their lives beyond their retirement. It is because of this that retirement is in a state of redefinition or re-invention. Not only are people spending more time in their retirement, they are staying "younger" during those years. Extended longevity did not create extended old age as the numbers might suggest. It is actually mid-life that is extending. People are staying "younger" longer. Today, in terms of lifestyle, fifty is quite young and sixty is becoming youthful as well. So what's likely to follow retirement—more work. It is becoming ever more clear thatBoomers will both want and need to work in what we've thought of as the traditional "retirement" years. A recent AARP study suggests that 84% of boomers intend to work "after retirement". In fact, we are learning that people seem to get tired of their job—not work. As the boomers begin to "retire" around 2010, the face of retirement will change significantly. As they have every other lifestage, the boomers will redefine this one. Boomers will not have the financial resources, or possibly even the desire, for the leisurely retirement that has been the norm. Rather, retirement for many boomers will be an extension of their current lifestyle—balancing work, family, personal aspirations and seeking adventure. As best-selling author Betty Friedan says, "the idea of retiring at age 65 is obsolete. It is based on an outdated life expectancy. We are on the verge of a society that extends everyone's working life into their 80's." To be effective at financial planning, we must also have a working understanding of a new kind of "life planning," that will be required to best serve individuals in this redefined life stage of retirement. People tend to look at the previous generation to define their retirement needs. Today, this strategy could be as devastating as one who drives a car always looking into the rearview mirror to navigate where they are heading. 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