The global population is aging, and this trend is having a significant impact on the consumer market. Senior consumers, those aged 65 and over, are a rapidly growing demographic and have increasing spending power. This trend is often referred to as the “silver economy” or the “silver tsunami.”
Growth of Senior Consumers
The number of Americans aged 65 and older is projected to increase from 58 million in 2022 to 82 million by 2050, representing a 47% increase. The share of the population aged 65 and older is expected to rise from 17% to 23% during the same period (source: PRB).
2023 was the first year in which the number of older adults, 50 years and older, grew more than the number of children under the age of 15. (source: The Brookings Institution).
This growth is driven by two main factors:
- Increasing life expectancy—Advances in healthcare and living standards have resulted in longer lifespans
- Retirement of the baby boomer generation—The baby boomer generation, born between 1946 and 1964, is now reaching retirement age and are mostly financially well-off, with a significant amount of disposable income
This demographic shift presents both challenges and opportunities. On the one hand, it strains social security and healthcare systems, but, on the other, it opens new markets for products and services tailored to older adults.
Retirement Rates
In 2024 an estimated 4.1 million Americans are turning 65. This translates to approximately 4.1 million people annually reaching retirement age from 2024 through 2027 (source: CBS News). This period, often referred to as “peak 65,” marks the highest number of Americans ever reaching retirement age simultaneously (source: CNBC).
4.1 million per year –341,667 per month – 78,846 per week – 11,233 per day
The number of Americans aged 65 and older in 2024 is part of a broader trend in which the total population over 65 is increasing. While exact daily figures vary, we can use the projected annual increase to provide approximate daily, weekly, and monthly counts.
By 2050 the number of Americans aged 65 and older is projected to be 82 million, up from 58 million in 2022. If we assume a linear growth between 2022 and 2050, we can estimate the increase to be:
857,143 per year – 71,429 per month – 16,484 per week – 2,348 per day
Retirees (those turning 65 of age):
4.1 million per year – 341,667 per month – 78,846 per week – 11,233 per day
New seniors (increasing 65+ population):
857,143 per year – 71,429 per month – 16,484 per week – 2,348 per day
These numbers provide a snapshot of the substantial and growing senior population, which has profound implications for healthcare, financial services, and consumer goods.
- Healthcare—Growing demand for healthcare services including Medicare enrollment and long-term care
- Financial services—Increased need for retirement planning, pension management, and related financial services
- Consumer goods—Rising demand for products designed for older adults such as assistive devices and age-friendly home modifications
Economic and Social Impact
- Labor force participation—More older adults are staying in the workforce longer. By 2022 24% of men and 15% of women aged 65 and older were in the labor force, with these numbers expected to rise (source: PRB).
- Poverty rates—Economic disparities persist despite the decreased poverty rate among seniors over the past decades. In 2022 14% of older Americans lived in poverty when considering noncash benefits and medical expenses (source: PRB).
- Diversity—The older population is becoming more racially and ethnically diverse, with the share of nonHispanic whites projected to drop from 75% in 2022 to 60% by 2050 (source: PRB).
Seniors’ Impact
The rise of senior consumers has a significant impact on the economy. Seniors are a major source of consumer spending, especially in areas like health care, travel, and leisure activities. In turn, businesses are increasingly recognizing the importance of catering to this demographic by developing products and services that meet their needs and preferences.
Understanding the senior consumer market is essential for businesses that want to stay competitive in the years to come. Keep in mind that seniors are:
- Brand loyal and have a high disposable income
- Tech-savvy and increasingly comfortable shopping online
- Have values and priorities that differ from younger generations
Conclusion
The growth in the senior population and the unprecedented number of people retiring are reshaping the economic landscape in the U.S. Policymakers, businesses, and communities must adapt to these changes to address the needs and leverage the potential of this significant demographic shift.
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