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.