More than $14 billion dollars: that’s how much money older Americans, over age 70, have added to their net worth since just before the pandemic. Though these Boomers – and Greatest Generation members still around – account for just 11 percent of the country’s overall population, they represent 30 percent of its wealth.
Gen X, Millennials and Gen Z might far outnumber them but, older American’s spending power remains a potent piece of the economy, one not to be ignored by retailers and suppliers who are often focused on younger consumers.
The new numbers, from the Federal Reserve, point to several reasons for this increase. One is just sheer numbers: there are 2.3 million more Americans over the age of 70 than there were in 2019. But even though most in this age group are no longer working and earning an income, their wealth has grown in two key areas: the value of their home or homes and the wealth they possess in stocks and other investments.
But income from jobs is also a factor. The percentage of older Americans who work has almost doubled since the mid-1980s and now totals nearly 20 percent.
Some of these gains also are a matter of good timing. Since 2019, those age 70 and older have collectively gained about $5 trillion in equity gains. They held close to 38 percent of the nation’s corporate equities and mutual fund shares, the highest share on record in data going back to 1989.
Whatever the source of their wealth older Americans are not to be counted out when it comes to purchasing power.