The golden years

To hear Yuwa Hedrick-Wong tell it, the stereotypical grandparent is a thing of the past. No more 60-something grandma doting on the grandkids and overseeing the home, her husband going for long, rambling walks with his retired buddies, discussing the day's news and shaking their heads regretfully on what the world is coming to. No. Today's senior citizens are more likely to lead lives independent of their children and their families. You'll probably see them spend the day at the spa, before heading to the club for a hand of bridge with like-minded and similar-aged friends. And that's only when they're not off on group holidays for some sightseeing and shopping.

The truth""at least in India""probably lies somewhere in between. Yes, most retired people in urban, upper middle class households no longer deteriorate into domestic drudges who are at the mercy of their children for financial and physical support. But, thanks to a woefully underdeveloped public pension system, they don't also enjoy the level of financial freedom that allows them to lead completely independent, empty-nester lives.

It's different in Japan, says Yuwa in The Glittering Silver Market. One in five Japanese is already over 65 years old. Life expectancy is 82, among the highest in the world and less than 50 per cent of Japan's senior citizens live with their children. They don't need to: there are several millionaires among older Japanese; the average Japanese over 60 has assets worth $225,000""that's thrice what households in their 30s have.

Being financially solvent is more than welcome, of course, but what makes it possible for Japanese wrinklies to live independent, fulfilled lives is the wealth of products designed to make their lives comfortable. Devices that take basic medical measurements such as blood pressure and temperature and send the readings automatically to a local health database; sensors that inform designated family members if the fridge isn't opened for an unusually long period of time; robot pets that provide companionship but don't need cleaning up after; cars with swivel seats that make it easier to get in and out.... Little wonder that Yuwa calls them the "silver aristocracy".

Not much attention has been paid until recently to the potential of retired people as consumers. That's probably a mistake: by 2015, retired singletons and empty-nesters across the Asia-Pacific will command a jaw-dropping $1.5 trillion as spending power. Understand the market, urges Yuwa. You are more likely to find single women than men: since women typically marry older men and enjoy a greater life expectancy, there will typically be more widows over 60 or 65, than widowers. At the risk of sounding callous, that's good news""at least, for marketers. Older, widowed men are more likely to withdraw from society and become inactive. Widowed women, on the other hand, are more likely to stick with their friends and families, pursue new hobbies and travel. Yuwa doesn't mince words: "An elderly consumer market dominated by widowed men, to put matters bluntly, would be a dud."

But consumption patterns and preferences change drastically in the three decades between 30 and 60 and if you're not prepared to give this market the kind of products and services it seeks, you'll lose anyway. The Glittering Silver Market contains extensive data on the spending habits of pensioners in most Asian markets, including Japan, Korea, Australia, China and Hong Kong. The book shares information""lots of charts on every page""on the billions of dollars spent on dining out, travelling, private healthcare and shopping. The overwhelming impression is of a segment of the populace that is determined to pamper itself and perhaps try and make up for the deprivation and hardships suffered in its youth""remember, the youngest of today's elderly was born in the immediate aftermath of World War II, while those older lived through the War and all its turbulence.

The extensive research by Yuwa and MasterCard""he is economic advisor, Asia Pacific, for the credit card company, which is also the book's sponsor""screeches to a halt when it reaches India. The country's 45 million senior citizens are dealt with in just five pages, compared to entire chapters for other Asian countries. The diminished interest is understandable: India is a very young country""the average age will increase by only one year, to 28, by 2015. Besides, most Indians are still poor and still dependent on their children. No luxury holidays or robotic assistance for them. Still, a little more information, especially on urban, affluent oldies, would have been welcome.

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The Glittering Silver Market
The Rise of the Elderly Consumers in Asia

Yuwa Hedrick-Wong
John Wiley & Sons
Pages: 166