The reality that Baby Boomers are beginning to retire is setting in at mutual fund companies, prompting many to turn their attention to younger generations, The Boston Globe reports.
Those between the ages of 40 to 59, which is considered the key demographic target for fund companies looking to reach people interested in saving for retirement, is currently 83 million, a 51% increase from 1992. But by 2020, that age group will increase by only 1%.
As a result, that is prompting many fund companies to devise marketing plans specifically targeted at younger investors, and to lower their minimum initial investments.
“What we see is the long-term potential in these kinds of customers,” said Steve McClaim, vice president of marketing at American Century. “We’d rather start his now rather than wait until they’re 45 because relationships are important.”
For its part,
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