The Older Consumer in the New Financial Services Market

Abstract

Recent regulatory reforms have changed the financial services market. We compare views of older consumers and financial institutions to determine the behavior of the older consumer in this new environment. Results indicate that financial institutions have misconceptions of the views and practices of older consumers. Older consumers stress economic considerations, for example, high interest rates, as principal influences on their savings behavior. Further, the older consumer is not taking advantage of the savings services currently being offered, and although information is available, it is uncertain whether it is being used effectively. Although financial institutions view themselves as the main source of financial information, the older consumer continues to rely on family forfinancial advice. A comprehensive education program for both older consumer and financial institution is recommended to assure that benefits of regulatory reform are distributed to all segments of the population.