In Summary: Baby boomers are spending heavyweights due to their population, higher incomes and large family sizes. They spend the most across all categories and the most per transaction, preferring premium brands and stores. But they also have the tendency to spend more than save. As they retire, boomers are investing in travel and their homes, spending more at home improvement stores than any other generation.
Baby Boomers (as of November 2018) are anywhere between 53 and 71 years old. Despite being outnumbered by Generation Y, they come in at 75 million strong, a considerable population force even if it’s not the largest.
And here’s the kicker: In 2015, Baby Boomers controlled 70% of the country’s disposable income, giving them the biggest spending power of any generation. What’s more, they stand to inherit $15 trillion in the next 14 years, according to a Nielsen report.
Check out these other staggering numbers from Nielsen about Baby Boomers:
- Baby Boomers are the second heaviest users of the Internet. More than half of the Baby Boomer population is on Facebook.
- Baby Boomers account for nearly $230 billion in sales for consumer-packaged goods.
- Baby Boomers make up 40% of customers paying for wireless service and 41% of those purchasing computers.
- Baby Boomers spend almost $7 billion shopping online.
- Baby Boomers dish out close to $90 billion a year on cars—nearly 30% more than other age groups.
Finding creative ways to woo and impress Millennial consumers is a top priority for many companies today. After all, Millennials represent the largest consumer group, the most diverse, the most influential and the most technologically savvy.
Logically, companies place a large chunk of their marketing efforts on this generation as they equal present and future economic gain. But in doing so, they often miss the significant spending power of another age group. They’re forgetting about Baby Boomers, which can be a big mistake for some companies.