A Disturbance In The Force

The first of my age cohort, the Baby Boomers, turn 80 this year, 2026.  Born between 1946 and 1964 all 76.4 million of us are kicking-off the new year with our growing dominance of consumer spending.  Why is this important anyway?  The US economy is primarily service-driven; not manufacturing.  Consequently, consumer spending accounts for roughly 68-70% of the U.S. Gross Domestic Product (GDP). This means that consumer spending is the largest component of the U.S. economy, and a major driver of economic growth.  More old people and fewer young ones are reshaping jobs and spending in all kinds of ways.  There's nothing nefarious about any of this; it's pure demographics. For instance, nearly all of January's job growth came from the healthcare and social assistance sectors with healthcare employment as the largest contributor to labor market growth in 2025.  

For any of you reading this who happen to be a dues-paying boomer ask yourself what of any of the following applies to you and your own situation. 

Exhibit 1 - The collective wealth of the baby boomers - estimated at over $78 trillion - is fundamentally reordering the global economy.  Retired and no longer accumulating assets boomers are spending discretionary funds while prioritizing quality of life over material accumulation.  Consider this: While younger generations may be tightening their belts due to inflation; boomers are the principal drivers behind a $544 billion travel market in 2026.  

Exhibit 2 - Boomers are more proactive with regard to medical care and lifestyle choices.  Whether it is preventative medicine, diet, exercise, active recreation and smartwatches boomers are investing in their future.  While some may choose to downsize, many are investing in their current homes and choosing to age in place.  This includes high-end appliances, landscaping, home improvements and upgrades in accessibility and other services to simplify daily life. 

Exhibit 3 - Value-based frugality.  Despite their wealth, it took a lifetime of saving, sacrificing and investing for boomers to get to where they are.  Consequently, they remain incredibly value-conscious.  Boomers demonstrate consistent brand loyalty and are more likely to drive their vehicles for longer periods than most Americans. They'll invest in home improvements if they believe it will add value to a future sale.  They're also less likely to spend on themselves and more likely to spend on their family members. 

To be clear, everyone's personal situation is different.  Moreover, as a cancer survivor I am smart enough to understand that anyone's number can be up at any time. Consequently, one day at a time.  Nevertheless, there's no escaping the fact that boomers are growing as a share of the overall aging population.  This demographic, referred to as the pig moving thru the python, along with their financial muscle is going to influence all sorta new business startups and marketing trends.  It's a good time to be alive.

Sound like anybody you know?