New research released by the AARP shows the significant impact that people ages 50 and older will have on FinTech — generating $83 billion in revenue over the next five years for the fast-emerging alternative financial services sector.
“Although the 50+ segment represents only 35 percent of the entire U.S. population, they control more than half of the nation’s investable assets,” according to the report. “And they are avid users of digital tools, services and products that will serve the next wave of consumers who soon will confront the final years before they retire.”
The report goes on to note that trillions of dollars are in play for financial innovators that tap into the large and growing markets for 50+ consumers who are approaching retirement. Key opportunities include helping consumers avoid or catch up from financial setbacks due to job instability, life-altering events and education costs.
In fact, 50+ consumers would have forgone multitrillion dollars in retirement savings by 2021 due to various burdens, including $4.3 trillion due to career setbacks and $1.3 trillion because of student debt.
Other significant findings include only one in four 50-plus consumers is highly confident they can meet their financial needs in the next five years, with many exposed or ill-prepared in three critical areas: financial fitness, health care emergencies and retirement readiness.