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Baby boomers hold 51% of all wealth in the United States. [Source: Federal Reserve]
Baby boomers are an important segment of the population with an enormous economic influence. There are around 72 million baby boomers in the United States, many of whom are approaching retirement age or have already retired. While millennials have now passed baby boomers in population share, baby boomers continue to control the most wealth of any group in the country. This makes them an important generation to keep an eye on thanks to both their sheer size and their buying power.
We’ve compiled more than 40 statistics on baby boomer spending habits to give a sense of how this generation manages income, debt, credit, retirement and leisure.
Note: we reference the most updated data available, but sometimes that information is from several years ago—check each individual source for specifics.
Demographics, employment and finances
Baby boomers are the second largest living generation in the United States, and many are continuing to work later than previous generations. While the COVID-19 pandemic did accelerate retirement among baby boomers, they are nonetheless continuing to generate large amounts of wealth and working in significant numbers.
- Baby boomers were born between 1946 and 1964, and they are currently between the ages of 58 and 76. [Source: History]
- There are around 72 million baby boomers in the United States. [Source: Pew Research Center]
- By the year 2030, everyone in the baby boomer generation will be 65 or older. [Source: U.S. Census Bureau]
- Baby boomers have $2.6 trillion in buying power. [Source: FONA]
- Aging baby boomers are driving consumer spending, and there are 11 million more consumers over age 60 now than in 2015. [Source: Visa]
- During the pandemic in 2020, around 3 million baby boomers retired, joining 25 million who had already retired. [Source: Pew Research Center]
- 30 percent of baby boomers who planned to leave their current job within the next six months said they would do so to advance their career. [Source: Olivet]
- 51 percent of baby boomers are worried that a millennial could take their job. [Source: Olivet]
- 75 percent of baby boomers would leave their current employer for more money. [Source: Olivet]
- Baby boomers in the gig economy make an average annual salary of $43,600 working 25 hours a week. [Source: AARP]
- Social Security income averages only $1,657 each month. [Source: AARP]
- 32 percent of baby boomers would choose freelancing flexibility over traditional employment. [Source: TD Ameritrade]
Online shopping
Though they weren’t raised on technology like millennials and Gen Zers, baby boomers have largely adapted to life online. Baby boomers contribute significantly to the economy through their participation in e-commerce.
- 68 percent of baby boomers own a smartphone. [Source: Pew Research Center]
- 40 percent of Visa credit card transactions for consumers ages 60 to 69 take place online with no physical card. [Source: Visa]
- 14 percent of baby boomers are ordering groceries online for home delivery. [Source: AARP]
- 47 percent of baby boomers seek out Cyber Monday deals when shopping for the holidays. [Source: Deloitte]
- 41 percent of baby boomers use digital coupons while they’re grocery shopping in stores. [Source: AARP]
- 52 percent of baby boomers prefer shopping online during the holiday season. [Source: Deloitte]
Spending and wealth trends
Baby boomers are no longer the largest generation, but they do possess more wealth than Gen Xers, millennials and Gen Zers. With high average spending and a propensity to indulge in luxury purchases, baby boomers have an outsized effect on the overall health of the economy.
- Baby boomers hold 51 percent of all wealth in the United States. [Source: Federal Reserve]
- The total net worth of the baby boomer generation is nearly $70 trillion. [Source: Federal Reserve]
- Total pension entitlements for baby boomers are more than $15 trillion, more than any other living generation. [Source: Federal Reserve]
- Baby boomers hold more than $20 trillion in stocks and mutual funds. [Source: Federal Reserve]
- Baby boomers spend an average of $63,325 each year. [Source: SmartAsset]
- The average baby boomer saves $4,625 each year, at a savings rate of 6.8 percent. [Source: SmartAsset]
- Baby boomers spend $11,159 annually on housing on average, which is less than Gen Xers and millennials. [Source: SmartAsset]
- Baby boomers account for about 38 percent of pet spending. [Source: Pet Business Professor]
- Baby boomers increased their spending on new clothes by 28 percent compared to before the pandemic. [Source: Retail Dive]
- 59 percent of baby boomers are willing to pay extra for socially compliant, sustainable products. [Source: Deloitte]
- 49 percent of baby boomers are interested in functional foods like probiotics and vitamins. [Source: FONA]
Retirement and healthcare
With an increasing number of baby boomers approaching retirement age, a looming concern is how well prepared this generation is for an extended retirement. The average life span is increasing for those born after World War II, but health problems are also on the rise for baby boomers. A large question for this generation is how to afford a quality lifestyle and excellent healthcare after their careers end.
- 69 percent of baby boomers either expect to work or are already working past age 65 or don’t plan to retire. [Source: TCRS]
- Baby boomers were expected to take four to six leisure trips in 2020 before the pandemic began. [Source: AARP]
- Baby boomers planned to spend $7,800 on travel in 2020 prior to the pandemic. [Source: AARP]
- Only 26 percent of baby boomers have a backup plan for retirement if they’re forced into retirement sooner than they thought. [Source: TCRS]
- Baby boomers are expected to spend 3 percent more on health-related purchases than their parents did. [Source: FONA]
- Baby boomers save between 9 and 10 percent of their income for retirement. [Source: Stanford University]
- 24 percent of baby boomers have increased their emergency savings after being impacted by COVID-19. [Source: Charles Schwab]
- Only 55 percent of baby boomers have money saved for retirement. [Source: Insured Retirement Institute]
- More than 4 in 10 baby boomers believe Medicare will cover long-term costs of healthcare. [Source: Insured Retirement Institute]
- Baby boomers spend an average of $6,025 on healthcare each year, which represents 10 percent of their annual spending and is more than Gen Xers and millennials spend on the same. [Source: SmartAsset]
Debt and credit
Baby boomers continue to have fairly large debt loads even in their later years, including debts from mortgages, student loans, auto loans and credit cards. As retirement approaches, a lingering question remains as to how baby boomers will pay down their accumulated debts with decreasing or fixed incomes.
- Baby boomers have an average mortgage debt of $191,650. [Source: CNBC]
- Baby boomers hold an average of $25,812 in debt from student loans, auto loans, credit cards and other nonmortgage accounts. [Source: CNBC]
- The average number of credit cards for baby boomers is 3.45. [Source: CNBC]
- The average VantageScore for baby boomers is 716. [Source: Experian]
- Average debt for baby boomers rose by 6.7 percent to $140,887 throughout the pandemic while debt held by other generations fell. [Source: AARP]
- Baby boomers’ personal loan debt is 18 percent higher than the national average. [Source: Experian]
- 12 percent of baby boomers have a student loan either for themselves or for someone else. [Source: AARP]
- 33 percent of baby boomers say student loan debt has prevented them from buying a car. [Source: AARP]
- The average student loan debt for borrowers over age 62 is $38,625. [Source: Lexington Law]
Baby boomers are not the only generation with debt, of course, nor are they the only users of credit. Credit usage is rising across all living generations, and many people are looking for ways to increase their credit scores. For those who have had their identity stolen or otherwise have inaccurate information on their credit report, it’s important to make sure your score is being fairly reported. Reach out to the credit repair consultants at Lexington Law Firm to get help disputing errors on your credit report.
Related links
- American spending habits
- Teen spending habits
- College student spending habits
- Gen Z spending habits
- Millennial spending habits
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