“This increased spending power comes from the higher savings balances and lower debt levels of over 65s, with net benefit rather than pain from the sharp interest rate rises.”
Older people are more likely to own their property without a mortgage and benefit from higher interest rates.
“The older generation already made up the biggest spenders across all those categories. And now we’re also seeing them increasing their spending in those categories as well.”
In other words, boomers continue to benefit.
In other words, boomers continue to benefit.
Sad but true, and they’ll probably have enough political power to stop anyone doing anything about it for a decade or so.
As someone nearing retirement, the flip side is that I’ve been working nearly 40 years and putting away part of my paycheck all that time. My house isn’t paid off, but yes, my debt is lower because I’ve been working for decades to get it lower so that I have the possibility to retire. In my parent’s generation, people often retired around 55, but it’s more like 65 or older for mine. And don’t misinterpret me - I’m not complaining, and I’m not saying the younger folks don’t have a harder time. My daughter is 25, and we’ve helped her quite a bit - I know what she faces. I’m just saying it’s not all candy falling from the sky.
Also keep in mind that anyone spending money, including boomers, is helping the economy. It would be worse if they weren’t spending it.
Also keep in mind that anyone spending money, including boomers, is helping the economy. It would be worse if they weren’t spending it.
Well, the whole point of interest rate rises is to reduce spending, with the aim of reducing inflation. So more spending isn’t a good thing.
That said, I’m guessing that spending on international travel is probably less inflationary than other things it could be spent on (e.g. domestic travel, hospitality).
