Senior Spending Boosting the Economy

What's the secret sauce behind resilient consumer spending regardless of rising interest rates? The elder American demographic are doing their part to keep a recession at bay.

Seniors aged 65+ accounted for a hefty 22% of spending in 2022, the highest in half a century.

The Aging Equation

• In August, a record-breaking 17.7% of the population was 65 or older.
• Elderly Americans are financially secure and borrowing less.
• Seniors hold nearly 26% of household wealth, the highest since 1989.
• They have minimal debt and are less affected by rising housing costs.

Inflation Resilience

• Seniors received a 8.7% boost in Social Security payments.
  - Their spending is less vulnerable to unemployment due to retirement.

Economic Lifesavers?

• The unprecedented $77.1 trillion wealth amassed by baby boomers challenges recession fears.

Living Life to the Fullest
Experts suggest the spike in senior spending is a lingering psychological impact of the Pandemic. In other words: life's short.

Lifestyles have changed, and today's seniors are more active and culturally involved. Hiking, e-biking, traveling, arts, and theater are more frequent senior hobbies.

Source: WSJ