Getting your share of the Boomer Retyrement Market

From The Australian newspaper, 12 July, 2006. “Sharing in the baby boomer bonanza: One can take stock and cash in on the affluence of this group” by James Dunn:

THE transition of Australia’s baby boomers into retirement is not only a demographic phenomenon, it is also an economic one. The cashed-up boomers will be the most affluent generation yet to retire.

Profiting from a demographic is easier said than done, but there are pointers for share market investors. KPMG demographer Bernard Salt says the 4.1 million baby boomers [in Australia] approaching retirement will be “rapacious consumers”. ….

Share investors wishing to benefit from the baby boomer demographic usually look to the obvious candidates – health care, private hospital and retirement village stocks. But if the baby boomers are also going to be big spenders on lifestyle, a wide range of industries should also benefit….

… it is safer to focus on stocks set to benefit from the baby boomers’ need to fund their retirement, and the recent changes to super[annuation] that have so benefited them…. Stocks such as the banks, AMP, Axa, Perpetual and Suncorp are going to manage the baby boomers’ money and the streams of income that they need and, in turn, that should create good cash flows for their investors.

I think generics will be a huge growth area, because the Government is very worried about the baby boomers causing a blow-out in medical costs. So, there will be very strong government support for generics.

Source: http://www.theaustralian.news.com.au/story/0,20867,19716968-5001942,00.html

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