Baby-boomers had been born between 1946 and 1964—and are the luckiest era in historical past. A lot of the cohort, which numbers 270m throughout the wealthy world, haven’t fought wars. Some obtained to see the Beatles reside. They grew up throughout sturdy financial progress. Not all are wealthy, however in mixture they’ve amassed nice wealth, owing to a mixture of falling rates of interest, declining housebuilding and robust earnings. American baby-boomers, who make up 20% of the nation’s inhabitants, personal 52% of its internet wealth, price $76trn (see chart 1 on subsequent web page).
Now the era is transferring into retirement, what are they going to do with their cash? The query issues for extra than simply suppliers of cruises and golf golf equipment. Since they’ve deep pockets, boomers’ spending selections will exert an enormous affect on international financial progress, inflation and rates of interest. And it seems boomers are remarkably stingy—not simply in America however throughout the wealthy world. They don’t seem to be spending their wealth, however attempting to protect and even improve it. The problem for the financial system within the 2020s and 2030s won’t be why boomers are spending a lot, as many had anticipated. It will likely be why they’re spending so little.
