Baby boomers may be entering their golden years (ages 65+), but studies show they’ll remain in the workforce longer than the generations that preceded them. And they’re holding on to that purchase power for as long as they can.
According to Visa, “the strongest future growth potential in spending lies firmly with baby boomers.” Boomers don’t make as many purchases as younger generations, but they’re still the biggest annual spenders. According to Epsilon research, boomers have an annual spend of $548.1B, not-so-closely trailed by Gen X, with $357B.
On top of general spending patterns—and although millennials and Gen Zers do have money to spend—baby boomers have the most disposable income of any generation. Visa’s report says that over half of U.S. spending comes from those 50 and older, and that they are “responsible for more spending growth over the past decade than any other generation, including the coveted millennials.”
One of the reasons boomers hold their place in the market? They’re still working, and they don’t plan on stopping anytime soon. Baby boomers are the only generation with upward trending growth in the labor force.
Whether it’s out of necessity or want, baby boomers’ digital adoption continues to increase as they hold on to their purchase power and intent—and as an undermarketed-to generation, businesses have plenty of room to capture it.