November 27, 2024
It is probably not news that 35.6% of U.S population (117,838,000 people) in 2020 were older than fifty years.[1] Nor that the percentage of U.S. adults 50+ is projected to increase to 37.0% by 2030 and to 40.8% by 2050, thanks in part to a growing life expectancy – that has increased by six years since 2000.[2]
And it probably won’t surprise you that this same cohort presently represents 56.3% of all U.S. consumer spending – and that will grow to 58.5% by 2030, and 62.3% by 2050.[3]
Furthermore, Americans 50+ held 43.7% of U.S. jobs in 2020 – and that, too, is projected to increase to 45.3% by 2030 and 46.7% by 2050.[4]
Do you see a trend here?
This Isn’t Just Happening in the U.S. It’s Global!
In 2020, the 50+ population worldwide contributed $45 trillion to the global gross domestic product (GDP) – that’s about 34% of global GDP. They were responsible for half of all consumer spending globally, which includes:
- 60% of all health-related spending
- 53% of all spending on recreation and culture
- 51% of all housing and utilities spending
- 50% of all furnishings and household maintenance
- 49% of all food and non-alcoholic beverages spending
- 49% of all transportation spending.[5]
Moreover, roughly half of the households around the world are headed by someone who is 50 years are older. These older household heads are making the decisions about household spending, whether it’s about groceries, home furnishings or vacations choices.
Needless to say, the 50+ cohort is a dominant worldwide economic engine!
But Wait! There’s More…
Many seniors will continue to work well after they reach retirement age. According to AARP, 72% of today’s workers plan to continue working after reaching retirement age. And among those who do retire, 33% go back to work within two years after retirement.
Why?
- They may desire to continue working for the social connection work can provide – this is a major driver for retirees who volunteer or work for nonprofit organizations.
- They may need a financial cushion because their retirement benefits are insufficient.
- They are simply achievers who often run their own businesses.
Entrepreneur Magazine reports: “In 1997, those between the ages 55 and 64 made up 15% of burgeoning entrepreneurs. By 2016, that number reached 24%, according to the Kauffman Index of Entrepreneurship.” Given the future size of the senior population and the cohort’s longer life expectancy, half of all entrepreneurs may be over 55 by 2030.[6]
The trend is clear: seniors will continue to grow as a dominant part of the worldwide workforce. To remain competitive and sustainable long-term, businesses will need to make sure they have plenty of opportunities for older workers, who bring a depth of experience, judgment and institutional knowledge that younger workers simply cannot deliver.
What seniors bring to the economy – in the U.S. and worldwide – will continue to grow! There’s just too much talent and knowledge that will be wasted if businesses do not take full advantage of the wisdom and experience of older generations.
Beyond Contributions to the Workforce
Here’s where marketers need to take note! These same seniors who represent a growing part of the U.S. and worldwide workforce are consumers, too. They are – and will remain – huge contributors to consumer spending for the next twenty-plus years. Marketers who eschew older consumers to focus on younger consumers are rather short-sighted. They are missing out on a substantial market segment, one that has more money and plenty of time to enjoy their spending for decades to come.
[1] Global Longevity Economy® Outlook; conducted by Economist Impact for AARP. 11-10-22
[2] Ibid.
[3] Ibid.
[4] Ibid.
[5] Ibid.
[6] “What Business Will Look Life In 2030;” Entrepreneur Magazine; 12-7-2020