As restrictions from Pandemic loosen in Q2 2022, older Americans (age 65+, mainly Boomers) are expected to help boost overall spending. Older people are typically more cautious spending during uncertain times, and as a result, they built significant wealth these past 2 years of the pandemic through savings including government stimulus. They are now eager to get going again, and expected to focus on experiential categories they missed like travel, hotels, dining.
However, there are a few things that could limit their spend per WSJ report: (Mar'22)
“Older and wealthier people tend to spend less and save more as a percentage of income than others, and the reverse is true for younger and less-affluent people.
A wave of early retirements among baby boomers during the pandemic means many have seen their incomes fall.
Some older Americans may hold back on spending because of higher inflation or stock market volatility stemming from the conflict in Ukraine.”
America is also aging: The size of the 65+ age group has increased by more than a third through 2019, making up about 17% of US population in 2020, and the Census bureau expects them to be more than 20% by 2030.
Do you have a strategy to win with the (wealthier) older American?