If 2020’s pandemic accelerated the use of technology adoption by older adults to all-time highs, 2021 was the year that gadgets and technology became a habit, according to a new AARP survey of 50-plus year olds, which found that by 2030 the  market will have grown to 132 million who will be spending about $108 billion annually on new tech.

Some 55% of adults age 50 and older are already using technology to perform financial transactions, up from 53% in 2020, the survey said. They also reported increasingly using apps, doing video conferencing, seeking out YouTube tutorials and exploring wearable devices, according to the survey “2022 Tech Trends and the 50-Plus.”

"The most important takeaway for financial advice providers is their 50+ clients are tech-savvy now,” Brittne Kakulla, a senior research advisor with AARP, said in an interview.

“This cohort has adopted the use of tech for managing all aspects of their life, finances included. Don't patronize them or assume they can't or won't use technology or the internet to learn and achieve their personal goals. Some 47% are motivated to use tech to manage their personal responsibilities. They can and will use technology, but they also have trust and privacy concerns. Meet them where they are at and help them by sharing trusted resources and tools,” Kakulla said.

Smartphone and overall app usage is up for consumers age 50 or more, as is engagement on a variety of social media platforms. While Facebook remains most popular among older adults (68%), YouTube (52%), Instagram (24%), Twitter (16%), LinkedIn (17%) and TikTok (10%) have grown in popularity. These platforms all provide a content opportunity to reach the over-50 crowd, the AARP found.

“Video-based content is a great learning tool for many,” Kakulla said.

“Right now is a great opportunity for providers given that by 2030, the 50+ market will have grown to 132 million and they will be spending about $108 billion annually on tech products. Many of those products such as smartphones, smart home assistants, and wearables could be used to manage their finances,” the report said.  

Technology has become a way of life for the cohort, with 92% of consumers age 50 and older citing texting as their number one go-to technology. Three in four consumers say they rely on technology to stay connected, with those in their 50s (76%), 60s (79%) and 70s (72%) all exceeding 70%, according to the survey.

This cohort also continues to expand their repertoire of tech devices owned, including home assistants, the AARP found. “Year-over-year increases in ownership of primary tech devices is seen again in 2021, although not to the extent of the rapid onset of growth in 2020 that was a result of the pandemic and significant social isolation,” the AARP reported.

One-third (35%) of those 50 or over now own a home assistant, up from 17% just two years ago and nearly one-third (30%) own a wearable, up from 17% in 2019.

In fact, interest in technology among older adults continues to expand and in new directions, the association found. Many, for instance, are not just playing catch-up on current technology but awaiting new advances, with 64% of 50-plus adults interested in at least one type of upcoming advancement.

Older adults also continue to spend on technology. Most (70%), in fact, made a tech purchase in the past year. That's on par with the 72% purchase rate for 2020, when the pandemic-fueled acceleration kicked in, continuing to leave 2019's pre-pandemic benchmark of 51% far behind, the AARP said. 

Meanwhile, people’s spending on technology remains significantly higher than prepandemic levels, at $821 in 2021 compared to $394 in 2019, according to the report.

But it’s also important for financial advice providers to meet consumers where they are, Kakulla advised. Significant numbers of consumers 50 and older reported they believed that technology “was not made for them.”

Two in five adults 50 or older feel technology is not inclusive, nor designed for people of all ages. “The older a person is, the more inclined they are to feel that technology is not designed with all people in mind,” the AARP said.

“It's important to understand for the 50-plus crowd that technology is a tool, not a replacement for social connection. Additionally, as professionals use tech tools to engage with older adults, they should ensure that those tools are ... incorporating age-inclusive design [and] marketing, and acknowledging the 50-plus [consumers’] trust and privacy concerns,” Kakulla added.