11. National Studies of the Mature Market for Financial Services

 Two national studies were designed to answer questions regarding the financial lifestyles and preferences of older adults.  Twenty-seven hundred adults age 55 and over and another one thousand younger adults responded to mail surveys.  Topics covered in this lengthy report include: preferences for selected financial services, sources of information, and methods of purchasing financial services; institutional-patronage preferences for a wide variety of financial services, including checking/savings accounts, CDs, money-market funds, government bonds and T-bills, stocks, IRA/Keogh, tax advice, financial planning, asset management, and insurance policies; reasons for patronizing financial institutions; use of credit cards; asset ownership and composition.  The preceding behaviors are analyzed by asset composition and institutional-patronage preferences.  Furthermore, the report contains information on preferences for using IRA/Keogh, pension and other types of investments to pay for post-retirement expenses.  Attitudes toward home-equity loans as well as several reverse-mortgage plans are examined, and media preferences of older adults who prefer these services are reported.  All these aspects of financial behavior are compared to those of younger adults and are analyzed by ten sociodemographic and lifestyle characteristics. © 1997.  Length: 500 pages.  $500.00

TABLE OF CONTENTS  

Purpose and objectives II-1
The studies II-2
Preferences for financial services II-3
Preferences for sources of information II-13
Preferences for methods of purchasing financial services II-18
Patronage preferences for checking or savings account II-23
Patronage preferences for certificate of deposit II-28
Patronage preferences for stocks II-34
Patronage preferences for government bonds and U.S. Treasury bills II-40
Patronage preferences for money market funds II-45
Patronage preferences for IRA/KEOGH accounts II-50
Patronage preferences for asset management services II-56
Patronage preferences for financial-planning services II-61
Patronage preferences for tax advice  II-66
Patronage preferences for insurance policies II-72
Reasons for patronizing financial institutions II-77
Use of credit cards  II-86
Asset ownership and composition II-94
Preferences for using IRA/KEOGH, pension to pay post-retirement expenses II-100
Preferences for using other investments to pay post-retirement expenses II-104
Preferences for methods of getting cash from home equity  II-108
Use of home equity to pay post-retirement expenses II-112
Summary and implications for marketing strategy II-116
Tables 
Appendix 
Supplement 

LIST OF TABLES  

TABLE II-1  Preferences for financial services among older adults
TABLE II-2  Preferences for financial services among  younger and older adults
TABLE II-3 Preferences for financial services among older adults by age
TABLE II-4 Preferences for financial services among older adults by gerontographic cluster
TABLE II-5 Preferences for financial services among  older adults by value of cash, CDs, checking and savings accounts owned
TABLE II-6 Preferences for financial services among older adults by financial- institution patrons
TABLE II-7 Preferences for sources of information regarding new financial services among older adults
TABLE II-8 Preferences for sources of information regarding new financial services among  younger and older adults
TABLE II-9 Preferences for sources of information regarding new financial services among older adults by gerontographic cluster
TABLE II-10 Preferences for sources of information regarding new financial services among  older adults by financial-institution patrons
TABLE II-11 Preferences for  methods of purchasing  financial services among older adults
TABLE II-12 Preferences for  methods of purchasing  financial services among  older adults by gerontographic cluster
TABLE II-13 Preferences for  methods of purchasing  financial services among older adults by financial-institution patrons
TABLE II-14 Patronage preferences for savings/checking account among younger and  older adults
TABLE II-15 Patronage preferences for savings/checking account among older adults by gerontographic cluster
TABLE II-16  Patronage preferences for savings/checking account among older adults by value of cash, CDs, checking and savings accounts owned
TABLE II-17 Patronage preferences for savings/checking account among older adults by financial-institution patrons
TABLE II-18 Patronage preferences for certificates of deposit among younger and older adults
TABLE II-19  Patronage preferences for certificates of deposit among  older adults by gerontographic cluster
TABLE II-20  Patronage preferences for certificates of deposit among older adults by financial-institution patrons
TABLE II-21 Patronage preferences for stocks among younger and older adults
TABLE II-22 Patronage preferences for stocks among older adults by gerontographic cluster
TABLE II-23 Patronage preferences for stocks among older adults by financial- institution patrons
TABLE II-24 Patronage preferences for government bonds/U.S. T-Bills among younger and older adults
TABLE II-25 Patronage preferences for government bonds/U.S. T-Bills among older adults by gerontographic cluster
TABLE II-26 Patronage preferences for government bonds/U.S. T-Bills among older adults by financial-institution patrons
TABLE II-27  Patronage preferences for money market fund among younger and older adults
TABLE II-28 Patronage preferences for money market fund among older adults by gerontographic cluster
TABLE II-29 Patronage preferences for money market fund among older adults by financial institution patrons
TABLE II-30 Patronage preferences for IRA/KEOGH among younger and older adults
TABLE II-31 Patronage preferences for IRA/KEOGH among older adults by gerontographic cluster
TABLE II-32 Patronage preferences for IRA/KEOGH among older adults  by financial-institution patrons
TABLE II-33 Patronage preferences for asset management services  among younger and older adults
TABLE II-34 Patronage preferences for asset management services among older adults by gerontographic cluster
TABLE II-35 Patronage preferences for asset management services among older adults by financial-institution patrons
TABLE II-36  Patronage preferences for financial planning services among younger and older adults
TABLE II-37 Patronage preferences for financial planning services among older adults by gerontographic cluster
TABLE II-38 Patronage preferences for financial planning services among older adults by financial-institution patrons
TABLE II-39 Patronage preferences for tax advice among younger and older adults
TABLE II-40  Patronage preferences for tax advice among older adults by gerontographic cluster
TABLE II-41 Patronage preferences for tax advice among older adults by financial-institution patrons
TABLE II-42  Patronage preferences for insurance policies among younger and older adults
TABLE II-43 Patronage preferences for insurance policies among older adults by gerontographic cluster
TABLE II-44  Patronage preferences for insurance policies among older adults by financial-institution patrons
TABLE II-45 Reasons for patronizing financial institutions among older adults
TABLE II-46 Reasons for patronizing financial institutions among younger and older adults
TABLE II-47  Reasons for patronizing financial institutions among older adults by gerontographic cluster
TABLE II-48 Reasons for patronizing financial institutions among older adults by financial-institution patrons
TABLE II-49 Use of credit cards by younger and older adults
TABLE II-50 Use of credit cards among older adults by financial-institution patrons
TABLE II-51 Older adults' needs by credit cards owned
TABLE II-52 Asset composition by selected characteristics
TABLE II-53 Asset composition by financial-institution patron groups
TABLE II-54 Preferences for using IRA/KEOGH, pension to pay post-retirement expenses among older adults
TABLE II-55 Preferences for using IRA/KEOGH, pension to pay post-retirement expenses among younger and older adults
TABLE II-56  Preferences for using IRA/KEOGH, pension to pay post-retirement expenses among older adults by gerontographic cluster
TABLE II-57 Preferences for using other investments to pay post-retirement expenses among older adults
TABLE II-58 Preferences for using other investments to pay post-retirement expenses among younger and older adults
TABLE II-59 Preferences for using other investments to pay post-retirement expenses among older adults by gerontographic cluster
TABLE II-60 Preferences for methods of getting cash from home equity among younger and older adults
TABLE II-61 Preferences for methods of getting cash from home equity among older adults by age
TABLE II-62 Preferences for methods of getting cash from home equity among older adults by gerontographic cluster
TABLE II-63 Use of home equity to pay post-retirement expenses among younger and older adults
TABLE II-64 Use of home equity to pay post-retirement expenses among older adults by age
TABLE II-65 Use of home equity to pay post-retirement expenses among older adults by gerontographic cluster