2020-01-12 — bisnow.com
Boomers control 70% of disposable income in the U.S., according to the report, titled Demographic Shifts: The World In 2030. Though a generation that has had its entire working life span to build wealth should be expected to have the lion's share of such income, 70% is too high a number to be merely cyclical, C&W said. Millennials have so far not been able to keep up with their parents' savings patterns due to flat wages and the explosion of student debt.
Boomers are expected to take a larger share of overall consumer spending in the next five years, rising to 33% of aggregate spending in the U.S. by 2025, according to a report from Visa's analytics division. The same research projects the percentage of aggregate spending from all younger generations to decline.
``The one thing that I worry about a little bit is that somewhere around two-thirds to three-quarters of boomers have under-saved for retirement and are going to have no real source of income besides Social Security," Severino said. "So I worry about them being able to spend."
The two most demographically significant groups of baby boomers then would be the smaller, wealthy cohort that will want luxury versions of whatever travel, leisure, entertainment or retail they pursue and a larger cohort that might have more time than it once did, but no added spending power, Levy said.''
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