Baby-boomers, born between 1946 and 1964, are considered to be the luckiest generation in history. With a population of 270 million across the rich world, most have not experienced wars and have had the opportunity to witness historical events such as seeing the Beatles live. Growing up during a time of strong economic growth has enabled them to amass great wealth, with American baby-boomers alone owning 52% of the country’s net wealth valued at $76 trillion.
As this generation moves into retirement, there is a significant impact on global economic growth, inflation, and interest rates. With their deep pockets, the spending choices of baby-boomers will shape the future economy. Surprisingly, boomers are showing a trend towards being frugal and prioritizing wealth preservation and growth over spending. This behavior is not exclusive to America, but is seen across the rich world.
Contrary to expectations, the challenge in the 2020s and 2030s will not be why boomers are spending so much, but rather why they are spending so little. This shift in consumer behavior will have far-reaching implications for various industries and the overall economy. Suppliers of products and services tailored towards retirement, leisure activities, and luxury items may need to adjust their strategies to appeal to this generation’s spending habits.
Overall, the economic impact of baby-boomers entering retirement with significant wealth will be a key factor to monitor in the coming years. Understanding their preferences and financial decisions will be crucial for businesses and policymakers in shaping future economic trends. The choices made by this generation will not only impact their own financial security but will also have ripple effects on the global economy as a whole.
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