Retirement Boom to Impact Consumption

by | May 17, 2017 | Institutional Services

As the number of U.S. retirees increases by 1.2 million a year, the resulting population shift will have a dramatic effect on consumption patterns, according to a report from The Conference Board. The report, “The Impact of Demographic Trends on Consumer Spending,” examines how spending patterns will change as people age, and provides perspective on how population-growth trends are likely to impact spending, Investment News reported. While the U.S. population will grow 8% between 2015 and 2025, the number of people ages 70-84 will spike by 50%. This is driven by the size of the Baby Boomer generation and increases to life expectancy for the elderly. This aging effect will have direct implications for consumer spending. The Conference Board projects the health care sector will see 15% growth, compared to 8% for consumption spending overall, and notes categories that are especially concentrated among the older population, such as long-term care, are likely to experience even more dramatic growth of about 20% – 25%. The reports forecasts that categories that will benefit from increased spending by retirees include household maintenance, gardening, reading, pets, personal care products and travel, while men’s clothing, food away from home, housing rental and used cars will see a decline in spending. There is also a geographic impact. Population shifts will boost consumption in Florida, Texas, Arizona and Nevada by more than twice the national average. Some retirement destinations will likely see more than 30% consumption growth, while other states will see little impact or a decline in consumption.

Latest From The Blog

Archives

Our Services

Investment Management

Tailor portfolios to your needs and goals.

Retirement Planning

Investing and saving wisely is vital to success in retirement.

Financial Planning

Navigating the complexities of your financial affairs can be simplified.

Tax Management

Help to increase the amount you “take home”.

Estate Planning

Protect your loved ones and make sure your legacy endures.

Executive Compensation Analysis

Simplify the many options and decision points of executive compensation plans.

Education Planning

Confidently plan for your children’s future.

Charitable Giving

Give in a tax-smart, simple way.

*Please Note: Limitations.  The scope of services to be provided depends upon the terms of the engagement, and the specific requests and needs of the client. BFSG does not serve as an attorney, accountant, or insurance agent.  BFSG does not prepare legal documents or tax returns, nor does it sell insurance products.  Please Also Note: Different types of investments involve varying degrees of risk.  Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended and/or undertaken by BFSG) or any financial planning or consulting services, will be profitable, equal any historical performance level(s), or prove successful.

Sign Up For Our Newsletters

(They're great, we promise)

Connect With Us